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Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology."/><meta property="twitter:image" content="https://hackernoon.imgix.net/fallback-feat.png"/><meta name="twitter:card" content="summary_large_image"/><meta name="twitter:site" content="@hackernoon"/><link rel="canonical" href="https://hackernoon.com/blockchain-technology-explained-introduction-meaning-and-applications-edbd6759a2b2"/><link rel="alternate" href="https://hackernoon.com/blockchain-technology-explained-introduction-meaning-and-applications-edbd6759a2b2" hrefLang="en"/><link rel="alternate" href="https://hackernoon.com/es/tecnologia-blockchain-explicada-introduccion-significado-y-aplicaciones-edbd6759a2b2" hrefLang="es"/><script type="application/ld+json">{"@context":"http://schema.org","@type":"Article","name":"Blockchain Technology Explained: Introduction, Meaning, and Applications","headline":"Blockchain Technology Explained: Introduction, Meaning, and Applications","author":{"@type":"Person","name":"Mayank Pratap"},"datePublished":"2018-07-30","image":"https://hackernoon.imgix.net/fallback-feat.png","articleSection":"blockchain-application","articleBody":"Replenish your fears against Blockchain. Image Source The 21st century is all about technology. With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology. Blockchain- The revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used in the place of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as Blockchain. There’s a common misconception among people that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of Blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of the blockchain technology. What is a Blockchain? What is Blockchain ? — Image Source In the simplest terms, Blockchain can be described as a data structure that holds transactional records and while ensuring security, transparency, and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A blockchain is a distributed ledger that is completely open to any and everyone on the network. Once an information is stored on a blockchain, it is extremely difficult to change or alter it. Each transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot be changed. Blockchain technology allows all the network participants to reach an agreement, commonly known as consensus. All the data stored on a blockchain is recorded digitally and has a common history which is available for all the network participants. This way, the chances of any fraudulent activity or duplication of transactions is eliminated without the need of a third-party. In order to understand blockchain better, consider an example where you are looking for an option to send some money to your friend who lives in a different location. A general option that you can normally use can be a bank or via a payment transfer application like PayPal or Paytm. This option involves third parties in order to process the transaction due to which an extra amount of your money is deducted as transferring fee. Moreover, in cases like these, you cannot ensure the security of your money as it is highly possible that a hacker might disrupt the network and steal your money. In both the cases, it is the customer who suffers. This is where Blockchain comes in. Instead of using a bank for transferring money, if we use a blockchain in such cases, the process becomes much easier and secure. There is no extra fee involved as the funds are directly processed by you thus, eliminating the need for a third party. Moreover, the blockchain database is decentralised and is not limited to any single location meaning that all the information and records kept on the blockchain are public and decentralized. Since the information is not stored in a single place, there’s no chance of corruption of the information by any hacker. How Does a Blockchain Work? How does Blockchain work — Image Source A blockchain is a chain of blocks that contain data or information. Despite being discovered earlier, the first successful and popular application of the Blockchain technology came into being in the year 2009 by Satoshi Nakamoto. He created the first digital cryptocurrency called Bitcoin through the use of Blockchain technology. Let’s understand how a blockchain actually works. Each block in a blockchain network stores some information along with the hash of its previous block. A hash is a unique mathematical code which belongs to a specific block. If the information inside the block is modified, the hash of the block will be subject to modification too. The connection of blocks through unique hash keys is what makes blockchain secure. While transactions take place on a blockchain, there are nodes on the network that validate these transactions. In Bitcoin blockchain, these nodes are called as miners and they use the concept of proof-of-work in order to process and validate transactions on the network. In order for a transaction to be valid, each block must refer to the hash of its preceding block. The transaction will take place only and only if the hash is correct. If a hacker tries to attack the network and change information of any specific block, the hash attached to the block will also get modified. The breach will be detected as the modified hash will not match with the original one. This ensures that the blockchain is unalterable as if any change which is made to the chain of blocks will be reflected throughout the entire network and will be detected easily. In a nutshell, here’s how blockchain allows transactions to take place: A blockchain network makes use of public and private keys in order to form a digital signature ensuring security and consent. Once the authentication is ensured through these keys, the need for authorization arises. Blockchain allows participants of the network to perform mathematical verification and reach a consensus to agree on any particular value. While making a transfer, the sender uses their private key and announces the transaction information over the network. A block is created containing information such as digital signature, timestamp, and the receiver’s public key. This block of information is broadcasted through the network and the validation process starts. Miners all over the network start solving the mathematical puzzle related to the transaction in order to process it. Solving this puzzle requires the miners to invest their computing power. Upon solving the puzzle first, the miner receives rewards in the form of bitcoins. Such kind of problems is referred to as proof-of-work mathematical problems. Once the majority of nodes in the network come to a consensus and agree to a common solution, the block is time stamped and added to the existing blockchain. This block can contain anything from money to data to messages. After the new block is added to the chain, the existing copies of blockchain are updated for all the nodes on the network. Blockchain Features Features of Blockchain — Image Source The following features make the revolutionary technology of blockchain stand out: Decentralised Blockchains are decentralized in nature meaning that no single person or group holds the authority of the overall network. While everybody in the network has the copy of the distributed ledger with them, no one can modify it on his or her own. This unique feature of blockchain allows transparency and security while giving power to the users. Peer-to-Peer Network With the use of Blockchain, the interaction between two parties through a peer-to-peer model is easily accomplished without the requirement of any third party. Blockchain uses P2P protocol which allows all the network participants to hold an identical copy of transactions, enabling approval through a machine consensus. For example, if you wish to make any transaction from one part of the world to another, you can do that with blockchain all by yourself within a few seconds. Moreover, any interruptions or extra charges will not be deducted in the transfer. Immutable The immutability property of a blockchain refers to the fact that any data once written on the blockchain cannot be changed. To understand immutability, consider sending email as an example. Once you send an email to a bunch of people, you cannot take it back. In order to find a way around, you’ll have to ask all the recipients to delete your email which is pretty tedious. This is how immutability works. Once the data has been processed, it cannot be altered or changed. In case of the blockchain, if you try to change the data of one block, you’ll have to change the entire blockchain following it as each block stores the hash of its preceding block. Change in one hash will lead to change in all the following hashes. It is extremely complicated for someone to change all the hashes as it requires a lot of computational power to do so. Hence, the data stored in a blockchain is non-susceptible to alterations or hacker attacks due to immutability. Tamper-Proof With the property of immutability embedded in blockchains, it becomes easier to detect tampering of any data. Blockchains are considered tamper-proof as any change in even one single block can be detected and addressed smoothly. There are two key ways of detecting tampering namely, hashes and blocks. As described earlier, each hash function associated with a block is unique. You can consider it like a fingerprint of a block. Any change in the data will lead to a change in the hash function. Since the hash function of one block is linked to next block, in order for a hacker to make any changes, he/she will have to change hashes of all the blocks after that block which is quite difficult to do. Types of Blockchains Types of Blockchain — Image Source Though Blockchain has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains. Before heading towards the difference between these two, let’s keep a check on the similarities that both public and private blockchain have: Both Public and Private blockchain have peer-to-peer decentralized networks. All the participants of the network maintain the copy of the shared ledger with them. The network maintains copies of the ledger and synchronizes the latest update with the help of consensus. The rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks. Now that we know the similar elements of both these blockchains, let’s learn about each of them in detail and the differences between them. As the name suggests, a public blockchain is a permissionless ledger and can be accessed by any and everyone. Anyone with the access to the internet is eligible to download and access it. Moreover, one can also check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain. Public Blockchain- Public blockchains allow the communities worldwide to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. Moreover, the rules decided and applied initially have very little scope of modification in the later stages. Contrary to the public blockchain, private blockchains are the ones which are shared only among the trusted participants. The overall control of the network is in the hands of the owners. Moreover, the rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization etc. Private Blockchain- Private blockchains can run independently or can be integrated with other blockchains too. These are usually used by enterprises and organizations. Therefore, the level of trust required amongst the participants is higher in private blockchains. Popular Applications of Blockchain Technology Application of Blockchain Technology — Image Source Though Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors. While the basic idea of trustworthy records and giving the power in the hands of users has enormous potential, it sure has raised a lot of hype in the markets too. The magic of this technology sure has the power to transform industries given the usage is planned and executable in actual senses. Let’s separate the wheat from the chaff and find out how Blockchain can be useful in actual implementation. Smart contracts Different businesses deal with each other in order to exchange services or products. All the give and take terms and conditions are signed by the involved parties in the form of agreements or contracts. However, these paper-based contracts are prone to errors and frauds which challenges the trust factor between both the parties and raises risks. Blockchain brings forward an amazing solution to this problem through Smart Contracts. Smart contracts perform similar functions as paper-based agreements. The differentiating factor about smart contracts is that these are digital as well as self-executable in nature. Self-executable meaning that when certain conditions in the code of these contracts are met, they are automatically deployed. Ethereum, an open source blockchain platform has introduced smart contracts in the Blockchain ecosystem. Smart contracts can be used for different situations or industries such as financial agreements, health insurances, real estate property documents, crowdfunding etc. For example, Blockchain smart contracts can be used in healthcare to manage drug supply. Once the name and quantity of a drug is shipped from a manufacturing company to be delivered ahead to the pharmacist, a smart contract with all the valid data like the information of the drug, the quantity of supply etc. can be created. This smart contract will be responsible for managing the entries throughout the entire supply chain between different intermediaries. Since the smart contract works on certain defined conditions, no one can alter them or make any changes in the contract thus, ensuring trust and authenticity of the drugs. Government Elections No matter how secure government elections are made, the chances of frauds through anti-social elements always persists. The current voting system relies on manual processing and trust. Even if security breaches and frauds are eliminated, the chances of manual errors cannot be ignored. In such cases, the best solution is to automate the overall process with the help of smart contracts. Blockchain smart contracts provide a modern system through which these common issues can be easily eliminated. Entries in the smart contracts will allow transparency and security while maintaining the privacy of the voters thus, enabling fair elections. Identity management Identity Attributes on Blockchain — Image Source The world is getting more digitized with every passing day. Consider financial transactions happening online for instance, you can easily login with your credentials and security pin in order to access your funds. However, in this case, no one can ensure the identity of the person taking out the money. If your username and password are hacked by someone, there’s no way to secure your money. The need of the hour is to have a system that manages individual identification on the web. The distributed ledger technology used in blockchains offers you advanced methods of public-private encryption using which, you can prove your identity and digitize your documents. This unique secure identity can work as a saviour for you while conducting any financial transactions or any online interactions on a shared economy. Moreover, the gap between different government bodies and private organizations can be filled through a universal online identity solution that blockchain can provide. Intellectual Property Protection Digital content or information can easily be reproduced and distributed with the aid of the internet. Due to this, people from all around the world hold the power to copy, replicate and use it without giving credits to the actual producer of the content. There are copyright laws to protect such issues but in the current scenario, these laws aren’t appropriately defined according to common global standards. Meaning that any law which is valid in the US might not stand true in Australia. Even if there’s any copyright applied to any intellectual property, people easily lose control over their data and suffer on financial terms. With the aid of Blockchain technology, all the copyrights can be stored in the form of smart contracts which will enable automation in businesses along with the increase in online sale thus, eliminating the redistribution risk. Blockchain for IP registry will help the authors, owners or users to get clarity of copyright. Once they register their work online, they’ll own the evidence which will be tamper-proof. As blockchain is immutable in nature, any entry once stored on the Blockchain cannot be changed or modified. The owner of the work will have the overall authority over the ownership as well as the distribution of the content. Conclusion Exploring Blockchain — Image Source Other than these few examples, the revolutionary technology of Blockchain holds a high potential of applications in many different industries and sectors. While some industries have already started adopting blockchain in their businesses, many are still exploring the best possible ways to start with. Blockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies. More areas of applications are being discovered and tested with each passing day. Once the technology is adopted and accepted on a global level, it’ll transform the way we live today. — — — — — — — — — — — — — — — — — — — — — — — — — — Read My Other Related Articles **3.** 1. How is Blockchain Revolutionizing Banking and Financial Markets , Also on Hackernoon 2. Blockchain in Healthcare: Opportunities, Challenges, and Applications , Also on Hackernoon How is Blockchain Disrupting the Supply Chain Industry? , Also on Hackernoon 4. Everything You Need to Know About Smart Contracts: A Beginner’s Guide , Also on Hackernoon 5. Top 10 Reputable Blockchain Development Companies , Also on Hackernoon I am Mayank, Cofounder of EngineerBabu . Feel free to reach out to me on LinkedIn | mayank@engineerbabu.com (About EngineerBabu — Medium ). In addition Help startups, enterprises, and owners to grow their business by building high class IT solutions. 95% of projects developed by them were completed on-time. , Win most innovative Premier Design Award, selected in Y-Combinator 2016 & 2017. 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Explained: Introduction, Meaning, and Applications</span><span class="by"> by</span><a class="profile" href="/u/mayankpratapeb">@mayankpratapeb</a><div class="profile-img"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2730%27%20height=%2730%27/%3e"/></span><img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img srcSet="https://cdn.hackernoon.com/avatars/robot-b4.png?auto=format&fit=max&w=32 1x, https://cdn.hackernoon.com/avatars/robot-b4.png?auto=format&fit=max&w=64 2x" src="https://cdn.hackernoon.com/avatars/robot-b4.png?auto=format&fit=max&w=64" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" loading="lazy"/></noscript></span></div></div><div class="sharing"></div></div></header><div style="position:fixed;z-index:9999;top:16px;left:16px;right:16px;bottom:16px;pointer-events:none"></div><main class="sc-9d336bae-1 ghWRJY"><div class="sc-d7dc08c8-0 gtbgtT"><div class="sc-93e186d7-0 eROqxA"><div class="metaContainer desktop-no-show"><div class="sc-93e186d7-5 fEpdfH"><div class="sc-93e186d7-4 ehdhzV"><span class="story-stat"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 22 22" width="22" style="width:14px;fill:darkgray"><path style="width:14px;fill:darkgray" d="M22 7v2h-1v1h-1v1h-1v1h-1v1h-1v5h1v4h-2v-1h-2v-1h-2v-1h-2v1H8v1H6v1H4v-4h1v-5H4v-1H3v-1H2v-1H1V9H0V7h7V5h1V3h1V1h1V0h2v1h1v2h1v2h1v2h7z"></path></svg> 67,638 reads</span></div></div></div><div class="story-topLine"><div class="story-stats"><span class="story-stat mobile-no-show"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 22 22" width="22" style="width:14px"><path style="width:14px" d="M22 7v2h-1v1h-1v1h-1v1h-1v1h-1v5h1v4h-2v-1h-2v-1h-2v-1h-2v1H8v1H6v1H4v-4h1v-5H4v-1H3v-1H2v-1H1V9H0V7h7V5h1V3h1V1h1V0h2v1h1v2h1v2h1v2h7z"></path></svg> 67,638 reads</span></div><div class="story-admin"></div></div><h1 class="story-title" style="text-align:left">Blockchain Technology Explained: Introduction, Meaning, and Applications</h1><div class="title-bottom"><div class="title-bottom-left"><span class="header-handle " data-tip="true" data-for="story-author" aria-label="bookmark story" data-delay-hide="1000"><span> by </span><a> Mayank Pratap</a></span><span class="divider-bullet"></span><span class="published-date">July 30th, 2018</span></div><div class="title-bottom-right"><div style="flex-shrink:0"><span style="display:flex;cursor:pointer" data-tip="true" data-for="terminal-view"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" 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class="lang selected-lang" data-tip="true" data-for="en-lang" href="/blockchain-technology-explained-introduction-meaning-and-applications-edbd6759a2b2"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2715%27%20height=%2715%27/%3e"/></span><img alt="en-flag" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="flag" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="en-flag" srcSet="https://hackernoon.imgix.net/images/usa_flag.webp?auto=format&fit=max&w=16 1x, https://hackernoon.imgix.net/images/usa_flag.webp?auto=format&fit=max&w=32 2x" src="https://hackernoon.imgix.net/images/usa_flag.webp?auto=format&fit=max&w=32" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="flag" loading="lazy"/></noscript></span>EN</a><a class="lang " data-tip="true" data-for="es-lang" href="/lang/es/tecnologia-blockchain-explicada-introduccion-significado-y-aplicaciones-edbd6759a2b2"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2715%27%20height=%2715%27/%3e"/></span><img alt="es-flag" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="flag" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="es-flag" srcSet="https://hackernoon.imgix.net/images/spain_flag.webp?auto=format&fit=max&w=16 1x, https://hackernoon.imgix.net/images/spain_flag.webp?auto=format&fit=max&w=32 2x" src="https://hackernoon.imgix.net/images/spain_flag.webp?auto=format&fit=max&w=32" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="flag" loading="lazy"/></noscript></span>ES</a></div><div class="sc-93e186d7-8 jdyuxE"><span class="lang selected-lang"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2720%27%20height=%2720%27/%3e"/></span><img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="flag" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img srcSet="https://hackernoon.imgix.net/images/usa_flag.webp?auto=format&fit=max&w=32 1x, https://hackernoon.imgix.net/images/usa_flag.webp?auto=format&fit=max&w=48 2x" src="https://hackernoon.imgix.net/images/usa_flag.webp?auto=format&fit=max&w=48" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="flag" loading="lazy"/></noscript></span><strong>EN</strong></span></div></div></div><div class="tldr-no-show"><h2>Too Long; Didn't Read</h2>The 21st century is all about technology. With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology.<div class="mentions-container"><div class="mentions-box"><h3>People Mentioned</h3><div class="mentions-img-wrapper"><div class="sc-93e186d7-6 dPrQoP"><a href="/u/SatoshiNakamoto" style="text-align:left" target="_blank" rel="noopener noreferrer"><div class="img"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2730%27%20height=%2730%27/%3e"/></span><img data-tip="true" data-for="tldr-mention-SatoshiNakamoto" alt="Mention Thumbnail" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="img" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain"/><noscript><img data-tip="true" data-for="tldr-mention-SatoshiNakamoto" alt="Mention Thumbnail" srcSet="https://hackernoon.imgix.net/images/avatars/YUmLSpfAVscbyEtE0XicubFWeFO2.jpg?auto=format&fit=max&w=32 1x, https://hackernoon.imgix.net/images/avatars/YUmLSpfAVscbyEtE0XicubFWeFO2.jpg?auto=format&fit=max&w=64 2x" src="https://hackernoon.imgix.net/images/avatars/YUmLSpfAVscbyEtE0XicubFWeFO2.jpg?auto=format&fit=max&w=64" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain" class="img" loading="lazy"/></noscript></span></div></a></div><div class="sc-93e186d7-6 dPrQoP"><a href="/u/blockchaindevelopment" style="text-align:left" target="_blank" rel="noopener noreferrer"><div class="img"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2730%27%20height=%2730%27/%3e"/></span><img data-tip="true" data-for="tldr-mention-blockchaindevelopment" alt="Mention Thumbnail" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="img" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain"/><noscript><img data-tip="true" data-for="tldr-mention-blockchaindevelopment" alt="Mention Thumbnail" srcSet="https://hackernoon.imgix.net/images/jsO9w3qxg7c2CzW8dBW6mroBR2r1-so034yu.jpeg?auto=format&fit=max&w=32 1x, https://hackernoon.imgix.net/images/jsO9w3qxg7c2CzW8dBW6mroBR2r1-so034yu.jpeg?auto=format&fit=max&w=64 2x" src="https://hackernoon.imgix.net/images/jsO9w3qxg7c2CzW8dBW6mroBR2r1-so034yu.jpeg?auto=format&fit=max&w=64" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain" class="img" loading="lazy"/></noscript></span></div></a></div></div></div><div class="mentions-box"><h3>Companies Mentioned</h3><div class="mentions-img-wrapper"><div title="BUNCH" class="sc-93e186d7-6 dPrQoP"><a href="/company/bunch" style="text-align:left" target="_blank" rel="noopener noreferrer"><div class="img"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2730%27%20height=%2730%27/%3e"/></span><img data-tip="true" data-for="tldr-mention-bunch" alt="Mention Thumbnail" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="img" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain"/><noscript><img data-tip="true" data-for="tldr-mention-bunch" alt="Mention Thumbnail" src="http://logo.bigpicture.io/logo/meetbunch.com" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain" class="img" loading="lazy"/></noscript></span></div></a></div><div title="Gap" class="sc-93e186d7-6 dPrQoP"><a href="/company/gap" style="text-align:left" target="_blank" rel="noopener noreferrer"><div class="img"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2730%27%20height=%2730%27/%3e"/></span><img data-tip="true" data-for="tldr-mention-gap" alt="Mention Thumbnail" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="img" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain"/><noscript><img data-tip="true" data-for="tldr-mention-gap" alt="Mention Thumbnail" src="http://logo.bigpicture.io/logo/gapinc.com" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain" class="img" loading="lazy"/></noscript></span></div></a></div></div></div><div class="mentions-box"><h3>Coin Mentioned</h3><div class="mentions-img-wrapper"><div title="Chain" class="sc-93e186d7-6 dPrQoP"><a href="/coins/XCN" style="text-align:left" target="_blank" rel="noopener noreferrer"><div class="img"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2730%27%20height=%2730%27/%3e"/></span><img data-tip="true" data-for="tldr-mention-XCN" alt="Mention Thumbnail" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="img" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain"/><noscript><img data-tip="true" data-for="tldr-mention-XCN" alt="Mention Thumbnail" srcSet="https://s2.coinmarketcap.com/static/img/coins/64x64/18679.png?auto=format&fit=max&w=32 1x, https://s2.coinmarketcap.com/static/img/coins/64x64/18679.png?auto=format&fit=max&w=64 2x" src="https://s2.coinmarketcap.com/static/img/coins/64x64/18679.png?auto=format&fit=max&w=64" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain" class="img" loading="lazy"/></noscript></span></div></a></div></div></div></div></div></div><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271000%27%20height=%27500%27/%3e"/></span><img alt="featured image - Blockchain Technology Explained: Introduction, Meaning, and Applications" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container feat" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="featured image - Blockchain Technology Explained: Introduction, Meaning, and Applications" srcSet="https://hackernoon.imgix.net/fallback-feat.png?auto=format&fit=max&w=1080 1x, https://hackernoon.imgix.net/fallback-feat.png?auto=format&fit=max&w=2048 2x" src="https://hackernoon.imgix.net/fallback-feat.png?auto=format&fit=max&w=2048" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container feat" loading="lazy"/></noscript></span><div style="grid-column:1 / -1"></div><div class="sc-6d048d67-0 buhXYs profile"><div class="sc-6d048d67-1 cziptZ"><div class="profileImageContainer "><span style="box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:absolute;top:0;left:0;bottom:0;right:0"><img data-for="author-tooltip" data-tip="true" data-delay-hide="200" alt="Mayank Pratap HackerNoon profile picture" href="/u/mayankpratapeb" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="fill" class="profileImage " style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:cover"/><noscript><img data-for="author-tooltip" data-tip="true" data-delay-hide="200" alt="Mayank Pratap HackerNoon profile picture" href="/u/mayankpratapeb" sizes="100vw" srcSet="https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 640w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 750w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 828w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 1080w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 1200w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 1920w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 2048w, https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max 3840w" src="https://hackernoon.imgix.net/avatars/robot-b4.png?w=100&auto=format&fit=max" decoding="async" data-nimg="fill" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:cover" class="profileImage " loading="lazy"/></noscript></span></div></div></div><div><div class="sc-2e79ac2f-0 ktrYOp"><div><h2>Replenish your fears against Blockchain.</h2> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%272083%27%20height=%271396%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*9wK0VOvs0fjJ_PjAvz-MoQ.jpeg?auto=format&fit=max&w=3840 1x" src="https://hackernoon.imgix.net/hn-images/1*9wK0VOvs0fjJ_PjAvz-MoQ.jpeg?auto=format&fit=max&w=3840" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p><a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>The 21st century is all about technology. With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology.</p> <p>Blockchain- The revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used in the place of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as Blockchain.</p> <p>There’s a common misconception among people that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of Blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of the blockchain technology.</p> <h4><strong>What is a Blockchain?</strong></h4> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%27800%27%20height=%27400%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*BFAXukYjLCVB8jMFOjT_rA.jpeg?auto=format&fit=max&w=828 1x, https://hackernoon.imgix.net/hn-images/1*BFAXukYjLCVB8jMFOjT_rA.jpeg?auto=format&fit=max&w=1920 2x" src="https://hackernoon.imgix.net/hn-images/1*BFAXukYjLCVB8jMFOjT_rA.jpeg?auto=format&fit=max&w=1920" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>What is Blockchain ? — <a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>In the simplest terms, Blockchain can be described as a data structure that holds transactional records and while ensuring security, transparency, and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A blockchain is a distributed ledger that is completely open to any and everyone on the network. Once an information is stored on a blockchain, it is extremely difficult to change or alter it.</p> <p>Each transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot be changed.</p> <p>Blockchain technology allows all the network participants to reach an agreement, commonly known as consensus. All the data stored on a blockchain is recorded digitally and has a common history which is available for all the network participants. This way, the chances of any fraudulent activity or duplication of transactions is eliminated without the need of a third-party.</p> <p>In order to understand blockchain better, consider an example where you are looking for an option to send some money to your friend who lives in a different location. A general option that you can normally use can be a bank or via a payment transfer application like PayPal or Paytm. This option involves third parties in order to process the transaction due to which an extra amount of your money is deducted as transferring fee. Moreover, in cases like these, you cannot ensure the security of your money as it is highly possible that a hacker might disrupt the network and steal your money. In both the cases, it is the customer who suffers. This is where Blockchain comes in.</p> <p>Instead of using a bank for transferring money, if we use a blockchain in such cases, the process becomes much easier and secure. There is no extra fee involved as the funds are directly processed by you thus, eliminating the need for a third party. Moreover, the blockchain database is decentralised and is not limited to any single location meaning that all the information and records kept on the blockchain are public and decentralized. Since the information is not stored in a single place, there’s no chance of corruption of the information by any hacker.</p> <h4><strong>How Does a Blockchain Work?</strong></h4> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271000%27%20height=%27670%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*MvWVXhce6mNzkx7I5sXUVQ.jpeg?auto=format&fit=max&w=1080 1x, https://hackernoon.imgix.net/hn-images/1*MvWVXhce6mNzkx7I5sXUVQ.jpeg?auto=format&fit=max&w=2048 2x" src="https://hackernoon.imgix.net/hn-images/1*MvWVXhce6mNzkx7I5sXUVQ.jpeg?auto=format&fit=max&w=2048" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>How does Blockchain work — <a href="https://dribbble.com/shots/4760742-Blockchain-technology-how-it-works-illustration?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>A blockchain is a chain of blocks that contain data or information. Despite being discovered earlier, the first successful and popular application of the Blockchain technology came into being in the year 2009 by Satoshi Nakamoto. He created the first digital cryptocurrency called Bitcoin through the use of Blockchain technology. Let’s understand how a blockchain actually works.</p> <p>Each block in a blockchain network stores some information along with the hash of its previous block. A hash is a unique mathematical code which belongs to a specific block. If the information inside the block is modified, the hash of the block will be subject to modification too. The connection of blocks through unique hash keys is what makes blockchain secure.</p> <p>While transactions take place on a blockchain, there are nodes on the network that validate these transactions. In Bitcoin blockchain, these nodes are called as miners and they use the concept of proof-of-work in order to process and validate transactions on the network. In order for a transaction to be valid, each block must refer to the hash of its preceding block. The transaction will take place only and only if the hash is correct. If a hacker tries to attack the network and change information of any specific block, the hash attached to the block will also get modified.</p> <p>The breach will be detected as the modified hash will not match with the original one. This ensures that the blockchain is unalterable as if any change which is made to the chain of blocks will be reflected throughout the entire network and will be detected easily.</p> <p>In a nutshell, here’s how blockchain allows transactions to take place:</p> <ol> <li>A blockchain network makes use of public and private keys in order to form a digital signature ensuring security and consent.</li> <li>Once the authentication is ensured through these keys, the need for authorization arises.</li> <li>Blockchain allows participants of the network to perform mathematical verification and reach a consensus to agree on any particular value.</li> <li>While making a transfer, the sender uses their private key and announces the transaction information over the network. A block is created containing information such as digital signature, timestamp, and the receiver’s public key.</li> <li>This block of information is broadcasted through the network and the validation process starts.</li> <li>Miners all over the network start solving the mathematical puzzle related to the transaction in order to process it. Solving this puzzle requires the miners to invest their computing power.</li> <li>Upon solving the puzzle first, the miner receives rewards in the form of bitcoins. Such kind of problems is referred to as proof-of-work mathematical problems.</li> <li>Once the majority of nodes in the network come to a consensus and agree to a common solution, the block is time stamped and added to the existing blockchain. This block can contain anything from money to data to messages.</li> <li>After the new block is added to the chain, the existing copies of blockchain are updated for all the nodes on the network.</li> </ol> <h4><strong>Blockchain Features</strong></h4> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%27800%27%20height=%27600%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/images/1*ADoVy9VNrOnxt2nyDeycfA.gif?auto=format&fit=max&w=828 1x, https://hackernoon.imgix.net/images/1*ADoVy9VNrOnxt2nyDeycfA.gif?auto=format&fit=max&w=1920 2x" src="https://hackernoon.imgix.net/images/1*ADoVy9VNrOnxt2nyDeycfA.gif?auto=format&fit=max&w=1920" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>Features of Blockchain — <a href="https://dribbble.com/shots/4218845-Blockchain?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>The following features make the revolutionary technology of blockchain stand out:</p> <p><strong>Decentralised</strong></p> <p>Blockchains are decentralized in nature meaning that no single person or group holds the authority of the overall network. While everybody in the network has the copy of the distributed ledger with them, no one can modify it on his or her own. This unique feature of blockchain allows transparency and security while giving power to the users.</p> <p><strong>Peer-to-Peer Network</strong></p> <p>With the use of Blockchain, the interaction between two parties through a peer-to-peer model is easily accomplished without the requirement of any third party. Blockchain uses P2P protocol which allows all the network participants to hold an identical copy of transactions, enabling approval through a machine consensus. For example, if you wish to make any transaction from one part of the world to another, you can do that with blockchain all by yourself within a few seconds. Moreover, any interruptions or extra charges will not be deducted in the transfer.</p> <p><strong>Immutable</strong></p> <p>The immutability property of a blockchain refers to the fact that any data once written on the blockchain cannot be changed. To understand immutability, consider sending email as an example. Once you send an email to a bunch of people, you cannot take it back. In order to find a way around, you’ll have to ask all the recipients to delete your email which is pretty tedious. This is how immutability works.</p> <p>Once the data has been processed, it cannot be altered or changed. In case of the blockchain, if you try to change the data of one block, you’ll have to change the entire blockchain following it as each block stores the hash of its preceding block. Change in one hash will lead to change in all the following hashes. It is extremely complicated for someone to change all the hashes as it requires a lot of computational power to do so. Hence, the data stored in a blockchain is non-susceptible to alterations or hacker attacks due to immutability.</p> <p><strong>Tamper-Proof</strong></p> <p>With the property of immutability embedded in blockchains, it becomes easier to detect tampering of any data. Blockchains are considered tamper-proof as any change in even one single block can be detected and addressed smoothly. There are two key ways of detecting tampering namely, hashes and blocks.</p> <p>As described earlier, each hash function associated with a block is unique. You can consider it like a fingerprint of a block. Any change in the data will lead to a change in the hash function. Since the hash function of one block is linked to next block, in order for a hacker to make any changes, he/she will have to change hashes of all the blocks after that block which is quite difficult to do.</p> <h4><strong>Types of Blockchains</strong></h4> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271000%27%20height=%27670%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*_gk4ghuW3NJKtBL5JGc3Xg.jpeg?auto=format&fit=max&w=1080 1x, https://hackernoon.imgix.net/hn-images/1*_gk4ghuW3NJKtBL5JGc3Xg.jpeg?auto=format&fit=max&w=2048 2x" src="https://hackernoon.imgix.net/hn-images/1*_gk4ghuW3NJKtBL5JGc3Xg.jpeg?auto=format&fit=max&w=2048" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>Types of Blockchain — <a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>Though Blockchain has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.</p> <p>Before heading towards the difference between these two, let’s keep a check on the similarities that both public and private blockchain have:</p> <ul> <li>Both Public and Private blockchain have peer-to-peer decentralized networks.</li> <li>All the participants of the network maintain the copy of the shared ledger with them.</li> <li>The network maintains copies of the ledger and synchronizes the latest update with the help of consensus.</li> <li>The rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks.</li> </ul> <p>Now that we know the similar elements of both these blockchains, let’s learn about each of them in detail and the differences between them.</p> <p><strong>Public Blockchain-</strong> As the name suggests, a public blockchain is a permissionless ledger and can be accessed by any and everyone. Anyone with the access to the internet is eligible to download and access it. Moreover, one can also check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain.</p> <p>Public blockchains allow the communities worldwide to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. Moreover, the rules decided and applied initially have very little scope of modification in the later stages.</p> <p><strong>Private Blockchain-</strong> Contrary to the public blockchain, private blockchains are the ones which are shared only among the trusted participants. The overall control of the network is in the hands of the owners. Moreover, the rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization etc.</p> <p>Private blockchains can run independently or can be integrated with other blockchains too. These are usually used by enterprises and organizations. Therefore, the level of trust required amongst the participants is higher in private blockchains.</p> <h4><strong>Popular Applications of Blockchain Technology</strong></h4> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%27800%27%20height=%27400%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*3yyJZkyCtkdD4IiilCwTTQ.jpeg?auto=format&fit=max&w=828 1x, https://hackernoon.imgix.net/hn-images/1*3yyJZkyCtkdD4IiilCwTTQ.jpeg?auto=format&fit=max&w=1920 2x" src="https://hackernoon.imgix.net/hn-images/1*3yyJZkyCtkdD4IiilCwTTQ.jpeg?auto=format&fit=max&w=1920" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>Application of Blockchain Technology — <a href="http://evontech.com/what-we-are-saying/blogger/listings/sumeet2k06.html?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>Though Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors.</p> <p>While the basic idea of trustworthy records and giving the power in the hands of users has enormous potential, it sure has raised a lot of hype in the markets too. The magic of this technology sure has the power to transform industries given the usage is planned and executable in actual senses. Let’s separate the wheat from the chaff and find out how Blockchain can be useful in actual implementation.</p> <p><strong>Smart contracts</strong></p> <p>Different businesses deal with each other in order to exchange services or products. All the give and take terms and conditions are signed by the involved parties in the form of agreements or contracts. However, these paper-based contracts are prone to errors and frauds which challenges the trust factor between both the parties and raises risks. Blockchain brings forward an amazing solution to this problem through Smart Contracts.</p> <p>Smart contracts perform similar functions as paper-based agreements. The differentiating factor about smart contracts is that these are digital as well as self-executable in nature. Self-executable meaning that when certain conditions in the code of these contracts are met, they are automatically deployed. Ethereum, an open source blockchain platform has introduced smart contracts in the Blockchain ecosystem. Smart contracts can be used for different situations or industries such as financial agreements, health insurances, real estate property documents, crowdfunding etc.</p> <p>For example, Blockchain smart contracts can be used in healthcare to manage drug supply.</p> <p>Once the name and quantity of a drug is shipped from a manufacturing company to be delivered ahead to the pharmacist, a smart contract with all the valid data like the information of the drug, the quantity of supply etc. can be created. This smart contract will be responsible for managing the entries throughout the entire supply chain between different intermediaries. Since the smart contract works on certain defined conditions, no one can alter them or make any changes in the contract thus, ensuring trust and authenticity of the drugs.</p> <p><strong>Government Elections</strong></p> <p>No matter how secure government elections are made, the chances of frauds through anti-social elements always persists. The current voting system relies on manual processing and trust. Even if security breaches and frauds are eliminated, the chances of manual errors cannot be ignored. In such cases, the best solution is to automate the overall process with the help of smart contracts.</p> <p>Blockchain smart contracts provide a modern system through which these common issues can be easily eliminated. Entries in the smart contracts will allow transparency and security while maintaining the privacy of the voters thus, enabling fair elections.</p> <p><strong>Identity management</strong></p> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271000%27%20height=%27670%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*PaIAxaUZ3F5SGZQoFxMN6g.jpeg?auto=format&fit=max&w=1080 1x, https://hackernoon.imgix.net/hn-images/1*PaIAxaUZ3F5SGZQoFxMN6g.jpeg?auto=format&fit=max&w=2048 2x" src="https://hackernoon.imgix.net/hn-images/1*PaIAxaUZ3F5SGZQoFxMN6g.jpeg?auto=format&fit=max&w=2048" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>Identity Attributes on Blockchain — <a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>The world is getting more digitized with every passing day. Consider financial transactions happening online for instance, you can easily login with your credentials and security pin in order to access your funds. However, in this case, no one can ensure the identity of the person taking out the money. If your username and password are hacked by someone, there’s no way to secure your money.</p> <p>The need of the hour is to have a system that manages individual identification on the web. The distributed ledger technology used in blockchains offers you advanced methods of public-private encryption using which, you can prove your identity and digitize your documents. This unique secure identity can work as a saviour for you while conducting any financial transactions or any online interactions on a shared economy. Moreover, the gap between different government bodies and private organizations can be filled through a universal online identity solution that blockchain can provide.</p> <p><strong>Intellectual Property Protection</strong></p> <p>Digital content or information can easily be reproduced and distributed with the aid of the internet. Due to this, people from all around the world hold the power to copy, replicate and use it without giving credits to the actual producer of the content. There are copyright laws to protect such issues but in the current scenario, these laws aren’t appropriately defined according to common global standards. Meaning that any law which is valid in the US might not stand true in Australia.</p> <p>Even if there’s any copyright applied to any intellectual property, people easily lose control over their data and suffer on financial terms. With the aid of Blockchain technology, all the copyrights can be stored in the form of smart contracts which will enable automation in businesses along with the increase in online sale thus, eliminating the redistribution risk.</p> <p>Blockchain for IP registry will help the authors, owners or users to get clarity of copyright. Once they register their work online, they’ll own the evidence which will be tamper-proof. As blockchain is immutable in nature, any entry once stored on the Blockchain cannot be changed or modified. The owner of the work will have the overall authority over the ownership as well as the distribution of the content.</p> <h4><strong>Conclusion</strong></h4> <p><span><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271000%27%20height=%27670%27/%3e"/></span><img alt="" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="image-container undefined" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="" srcSet="https://hackernoon.imgix.net/hn-images/1*qqJRXkqOwCDo23CyRLN8Gg.jpeg?auto=format&fit=max&w=1080 1x, https://hackernoon.imgix.net/hn-images/1*qqJRXkqOwCDo23CyRLN8Gg.jpeg?auto=format&fit=max&w=2048 2x" src="https://hackernoon.imgix.net/hn-images/1*qqJRXkqOwCDo23CyRLN8Gg.jpeg?auto=format&fit=max&w=2048" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="image-container undefined" loading="lazy"/></noscript></span></span></p> <p>Exploring Blockchain — <a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">Image Source</a></p> <p>Other than these few examples, the revolutionary technology of Blockchain holds a high potential of applications in many different industries and sectors. While some industries have already started adopting blockchain in their businesses, many are still exploring the best possible ways to start with.</p> <p>Blockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies. More areas of applications are being discovered and tested with each passing day. Once the technology is adopted and accepted on a global level, it’ll transform the way we live today.</p> <p>— — — — — — — — — — — — — — — — — — — — — — — — — —</p> <h4>Read My Other Related Articles</h4> <p class="line-space"> <br/> </p><p><strong>1.</strong> <a href="https://www.engineerbabu.com/blog/blockchain-revolutionizing-banking-financial-markets/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>How is Blockchain Revolutionizing Banking and Financial Markets</strong></a><strong>, Also on</strong> <a href="https://hackernoon.com/how-is-blockchain-revolutionizing-banking-and-financial-markets-9241df07c18b?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Hackernoon</strong></a><strong>2.</strong> <a href="https://www.engineerbabu.com/blog/blockchain-in-healthcare-opportunities-challenges-and-applications/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Blockchain in Healthcare: Opportunities, Challenges, and Applications</strong></a><strong>, Also on</strong> <a href="https://hackernoon.com/blockchain-in-healthcare-opportunities-challenges-and-applications-d6b286da6e1f?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Hackernoon</strong></a>**3.** <a href="https://hackernoon.com/how-to-build-a-food-ordering-app-an-ultimate-guide-on-food-ordering-mobile-app-c19441826aca?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"></a><a href="https://www.engineerbabu.com/blog/how-is-blockchain-disrupting-the-supply-chain-industry/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>How is Blockchain Disrupting the Supply Chain Industry?</strong></a><strong>, Also on</strong> <a href="https://hackernoon.com/how-is-blockchain-disrupting-the-supply-chain-industry-f3a1c599daef?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Hackernoon</strong></a><strong>4.</strong> <a href="https://www.engineerbabu.com/blog/smart-contracts/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Everything You Need to Know About Smart Contracts: A Beginner’s Guide</strong></a><strong>, Also on</strong> <a href="https://hackernoon.com/everything-you-need-to-know-about-smart-contracts-a-beginners-guide-c13cc138378a?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Hackernoon</strong></a><strong>5.</strong> <a href="https://www.engineerbabu.com/blog/top-10-reputable-blockchain-development-companies/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Top 10 Reputable Blockchain Development Companies</strong></a><strong>, Also on</strong> <a href="https://hackernoon.com/top-10-reputable-blockchain-development-companies-7c6eba562b90?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><strong>Hackernoon</strong></a></p><blockquote> <p><em>I am Mayank, Cofounder of</em> <a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><em>EngineerBabu</em></a><em>. Feel free to reach out to me on</em> <a href="https://www.linkedin.com/in/mayankpratap/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><em>LinkedIn</em></a> <em>| <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="d5b8b4acb4bbbe95b0bbb2bcbbb0b0a7b7b4b7a0fbb6bab8">[email protected]</a> (About EngineerBabu —</em> <a href="https://hackernoon.com/how-mayank-pratap-built-engineerbabu-a-profitable-it-service-company-generating-more-than-50-000-per-month-bcd3006bdbb5?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc"><em>Medium</em></a><em>).</em></p> </blockquote> <p>In addition <a href="https://www.engineerbabu.com/?ref=hackernoon.com" target="_blank" rel="noopener noreferrer ugc">EngineerBabu</a> Help startups, enterprises, and owners to grow their business by building high class IT solutions. 95% of projects developed by them were completed on-time. <a href="https://www.engineerbabu.com/casestudies?ref=hackernoon.com" target="_blank" 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comments & <span style="font-style:italic"> more!</span><br/></div></div><br/><section><div class="sc-104e382f-0 dGrQDi authorBio-section"><h3>About Author</h3><div class="row"><div class="avatar "><a href="/u/mayankpratapeb"><span style="box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:absolute;top:0;left:0;bottom:0;right:0"><img alt="Mayank Pratap HackerNoon profile picture" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="fill" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:cover"/><noscript><img alt="Mayank Pratap HackerNoon profile picture" sizes="100vw" srcSet="https://hackernoon.imgix.net/avatars/robot-b4.png?w=200&auto=format&fit=max 640w, 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class="author-info-top"><span class="author-name-handle"><strong>Mayank Pratap</strong><span class="handle"><a href="/u/mayankpratapeb">@mayankpratapeb</a></span></span><div class="sc-9d94a5e5-4 jtwMgp"><form class="author-email-form"><div class="emailContainer"><input type="email" placeholder="name@company.com" name="email" required="" value=""/><button class="sc-9d94a5e5-2 fEEqoW plus-icon subscribe-tooltip sub-btn"><div><span data-tip="true" data-for="subscribe-btn-tooltip">Subscribe <i class=""></i></span></div></button></div></form></div></div><span class="bio">Co-Founder & COO</span><div class="author-cta-wrapper"><a class="bio-cta" href="/u/mayankpratapeb"><i style="font-size:1.8rem"></i>Read my stories</a></div></div></div></div></section><div id="commentSection"></div><section class="topics-section"><h4>TOPICS</h4><div class="tags"><a class="sc-29806bfb-0 cdoWeI parent-category" href="/c/web3"><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2720%27%20height=%2720%27/%3e"/></span><img alt="purcat-img" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img 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in the Cryptosphere</a></strong><div class="card-title"><div class="card-info"><span class="author"><span style="color:gray">by</span> <strong><a class="author-link" href="https://hackernoon.com/u/BlockEx">BlockEx </a></strong></span><div></div><div class="divider-bullet"></div><div class="date">Feb 05, 2018</div></div><a class="related" href="/tagged/bitcoin"><span class="centered"> #bitcoin</span></a></div></div></div></div></section><div class="sc-92a1b621-1 SWeJa"><a class="fs-hn-cta" href="https://hackernoon.com/login"><div class="cta-top"><small>Join HackerNoon</small><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img 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style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" loading="lazy"/></noscript></span></div><strong>Latest technology trends. Customized Experience. Curated Stories. Publish Your Ideas </strong></a></div></div></main></div></div><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script><script id="__NEXT_DATA__" type="application/json">{"props":{"pageProps":{"data":{"pageLang":"en","datePublished":"2018-07-30","slug":"blockchain-technology-explained-introduction-meaning-and-applications-edbd6759a2b2","articleBody":"Replenish your fears against Blockchain. Image Source The 21st century is all about technology. With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology. Blockchain- The revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used in the place of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as Blockchain. There’s a common misconception among people that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of Blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of the blockchain technology. What is a Blockchain? What is Blockchain ? — Image Source In the simplest terms, Blockchain can be described as a data structure that holds transactional records and while ensuring security, transparency, and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A blockchain is a distributed ledger that is completely open to any and everyone on the network. Once an information is stored on a blockchain, it is extremely difficult to change or alter it. Each transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot be changed. Blockchain technology allows all the network participants to reach an agreement, commonly known as consensus. All the data stored on a blockchain is recorded digitally and has a common history which is available for all the network participants. This way, the chances of any fraudulent activity or duplication of transactions is eliminated without the need of a third-party. In order to understand blockchain better, consider an example where you are looking for an option to send some money to your friend who lives in a different location. A general option that you can normally use can be a bank or via a payment transfer application like PayPal or Paytm. This option involves third parties in order to process the transaction due to which an extra amount of your money is deducted as transferring fee. Moreover, in cases like these, you cannot ensure the security of your money as it is highly possible that a hacker might disrupt the network and steal your money. In both the cases, it is the customer who suffers. This is where Blockchain comes in. Instead of using a bank for transferring money, if we use a blockchain in such cases, the process becomes much easier and secure. There is no extra fee involved as the funds are directly processed by you thus, eliminating the need for a third party. Moreover, the blockchain database is decentralised and is not limited to any single location meaning that all the information and records kept on the blockchain are public and decentralized. Since the information is not stored in a single place, there’s no chance of corruption of the information by any hacker. How Does a Blockchain Work? How does Blockchain work — Image Source A blockchain is a chain of blocks that contain data or information. Despite being discovered earlier, the first successful and popular application of the Blockchain technology came into being in the year 2009 by Satoshi Nakamoto. He created the first digital cryptocurrency called Bitcoin through the use of Blockchain technology. Let’s understand how a blockchain actually works. Each block in a blockchain network stores some information along with the hash of its previous block. A hash is a unique mathematical code which belongs to a specific block. If the information inside the block is modified, the hash of the block will be subject to modification too. The connection of blocks through unique hash keys is what makes blockchain secure. While transactions take place on a blockchain, there are nodes on the network that validate these transactions. In Bitcoin blockchain, these nodes are called as miners and they use the concept of proof-of-work in order to process and validate transactions on the network. In order for a transaction to be valid, each block must refer to the hash of its preceding block. The transaction will take place only and only if the hash is correct. If a hacker tries to attack the network and change information of any specific block, the hash attached to the block will also get modified. The breach will be detected as the modified hash will not match with the original one. This ensures that the blockchain is unalterable as if any change which is made to the chain of blocks will be reflected throughout the entire network and will be detected easily. In a nutshell, here’s how blockchain allows transactions to take place: A blockchain network makes use of public and private keys in order to form a digital signature ensuring security and consent. Once the authentication is ensured through these keys, the need for authorization arises. Blockchain allows participants of the network to perform mathematical verification and reach a consensus to agree on any particular value. While making a transfer, the sender uses their private key and announces the transaction information over the network. A block is created containing information such as digital signature, timestamp, and the receiver’s public key. This block of information is broadcasted through the network and the validation process starts. Miners all over the network start solving the mathematical puzzle related to the transaction in order to process it. Solving this puzzle requires the miners to invest their computing power. Upon solving the puzzle first, the miner receives rewards in the form of bitcoins. Such kind of problems is referred to as proof-of-work mathematical problems. Once the majority of nodes in the network come to a consensus and agree to a common solution, the block is time stamped and added to the existing blockchain. This block can contain anything from money to data to messages. After the new block is added to the chain, the existing copies of blockchain are updated for all the nodes on the network. Blockchain Features Features of Blockchain — Image Source The following features make the revolutionary technology of blockchain stand out: Decentralised Blockchains are decentralized in nature meaning that no single person or group holds the authority of the overall network. While everybody in the network has the copy of the distributed ledger with them, no one can modify it on his or her own. This unique feature of blockchain allows transparency and security while giving power to the users. Peer-to-Peer Network With the use of Blockchain, the interaction between two parties through a peer-to-peer model is easily accomplished without the requirement of any third party. Blockchain uses P2P protocol which allows all the network participants to hold an identical copy of transactions, enabling approval through a machine consensus. For example, if you wish to make any transaction from one part of the world to another, you can do that with blockchain all by yourself within a few seconds. Moreover, any interruptions or extra charges will not be deducted in the transfer. Immutable The immutability property of a blockchain refers to the fact that any data once written on the blockchain cannot be changed. To understand immutability, consider sending email as an example. Once you send an email to a bunch of people, you cannot take it back. In order to find a way around, you’ll have to ask all the recipients to delete your email which is pretty tedious. This is how immutability works. Once the data has been processed, it cannot be altered or changed. In case of the blockchain, if you try to change the data of one block, you’ll have to change the entire blockchain following it as each block stores the hash of its preceding block. Change in one hash will lead to change in all the following hashes. It is extremely complicated for someone to change all the hashes as it requires a lot of computational power to do so. Hence, the data stored in a blockchain is non-susceptible to alterations or hacker attacks due to immutability. Tamper-Proof With the property of immutability embedded in blockchains, it becomes easier to detect tampering of any data. Blockchains are considered tamper-proof as any change in even one single block can be detected and addressed smoothly. There are two key ways of detecting tampering namely, hashes and blocks. As described earlier, each hash function associated with a block is unique. You can consider it like a fingerprint of a block. Any change in the data will lead to a change in the hash function. Since the hash function of one block is linked to next block, in order for a hacker to make any changes, he/she will have to change hashes of all the blocks after that block which is quite difficult to do. Types of Blockchains Types of Blockchain — Image Source Though Blockchain has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains. Before heading towards the difference between these two, let’s keep a check on the similarities that both public and private blockchain have: Both Public and Private blockchain have peer-to-peer decentralized networks. All the participants of the network maintain the copy of the shared ledger with them. The network maintains copies of the ledger and synchronizes the latest update with the help of consensus. The rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks. Now that we know the similar elements of both these blockchains, let’s learn about each of them in detail and the differences between them. As the name suggests, a public blockchain is a permissionless ledger and can be accessed by any and everyone. Anyone with the access to the internet is eligible to download and access it. Moreover, one can also check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain. Public Blockchain- Public blockchains allow the communities worldwide to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. Moreover, the rules decided and applied initially have very little scope of modification in the later stages. Contrary to the public blockchain, private blockchains are the ones which are shared only among the trusted participants. The overall control of the network is in the hands of the owners. Moreover, the rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization etc. Private Blockchain- Private blockchains can run independently or can be integrated with other blockchains too. These are usually used by enterprises and organizations. Therefore, the level of trust required amongst the participants is higher in private blockchains. Popular Applications of Blockchain Technology Application of Blockchain Technology — Image Source Though Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors. While the basic idea of trustworthy records and giving the power in the hands of users has enormous potential, it sure has raised a lot of hype in the markets too. The magic of this technology sure has the power to transform industries given the usage is planned and executable in actual senses. Let’s separate the wheat from the chaff and find out how Blockchain can be useful in actual implementation. Smart contracts Different businesses deal with each other in order to exchange services or products. All the give and take terms and conditions are signed by the involved parties in the form of agreements or contracts. However, these paper-based contracts are prone to errors and frauds which challenges the trust factor between both the parties and raises risks. Blockchain brings forward an amazing solution to this problem through Smart Contracts. Smart contracts perform similar functions as paper-based agreements. The differentiating factor about smart contracts is that these are digital as well as self-executable in nature. Self-executable meaning that when certain conditions in the code of these contracts are met, they are automatically deployed. Ethereum, an open source blockchain platform has introduced smart contracts in the Blockchain ecosystem. Smart contracts can be used for different situations or industries such as financial agreements, health insurances, real estate property documents, crowdfunding etc. For example, Blockchain smart contracts can be used in healthcare to manage drug supply. Once the name and quantity of a drug is shipped from a manufacturing company to be delivered ahead to the pharmacist, a smart contract with all the valid data like the information of the drug, the quantity of supply etc. can be created. This smart contract will be responsible for managing the entries throughout the entire supply chain between different intermediaries. Since the smart contract works on certain defined conditions, no one can alter them or make any changes in the contract thus, ensuring trust and authenticity of the drugs. Government Elections No matter how secure government elections are made, the chances of frauds through anti-social elements always persists. The current voting system relies on manual processing and trust. Even if security breaches and frauds are eliminated, the chances of manual errors cannot be ignored. In such cases, the best solution is to automate the overall process with the help of smart contracts. Blockchain smart contracts provide a modern system through which these common issues can be easily eliminated. Entries in the smart contracts will allow transparency and security while maintaining the privacy of the voters thus, enabling fair elections. Identity management Identity Attributes on Blockchain — Image Source The world is getting more digitized with every passing day. Consider financial transactions happening online for instance, you can easily login with your credentials and security pin in order to access your funds. However, in this case, no one can ensure the identity of the person taking out the money. If your username and password are hacked by someone, there’s no way to secure your money. The need of the hour is to have a system that manages individual identification on the web. The distributed ledger technology used in blockchains offers you advanced methods of public-private encryption using which, you can prove your identity and digitize your documents. This unique secure identity can work as a saviour for you while conducting any financial transactions or any online interactions on a shared economy. Moreover, the gap between different government bodies and private organizations can be filled through a universal online identity solution that blockchain can provide. Intellectual Property Protection Digital content or information can easily be reproduced and distributed with the aid of the internet. Due to this, people from all around the world hold the power to copy, replicate and use it without giving credits to the actual producer of the content. There are copyright laws to protect such issues but in the current scenario, these laws aren’t appropriately defined according to common global standards. Meaning that any law which is valid in the US might not stand true in Australia. Even if there’s any copyright applied to any intellectual property, people easily lose control over their data and suffer on financial terms. With the aid of Blockchain technology, all the copyrights can be stored in the form of smart contracts which will enable automation in businesses along with the increase in online sale thus, eliminating the redistribution risk. Blockchain for IP registry will help the authors, owners or users to get clarity of copyright. Once they register their work online, they’ll own the evidence which will be tamper-proof. As blockchain is immutable in nature, any entry once stored on the Blockchain cannot be changed or modified. The owner of the work will have the overall authority over the ownership as well as the distribution of the content. Conclusion Exploring Blockchain — Image Source Other than these few examples, the revolutionary technology of Blockchain holds a high potential of applications in many different industries and sectors. While some industries have already started adopting blockchain in their businesses, many are still exploring the best possible ways to start with. Blockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies. More areas of applications are being discovered and tested with each passing day. Once the technology is adopted and accepted on a global level, it’ll transform the way we live today. — — — — — — — — — — — — — — — — — — — — — — — — — — Read My Other Related Articles **3.** 1. How is Blockchain Revolutionizing Banking and Financial Markets , Also on Hackernoon 2. Blockchain in Healthcare: Opportunities, Challenges, and Applications , Also on Hackernoon How is Blockchain Disrupting the Supply Chain Industry? , Also on Hackernoon 4. Everything You Need to Know About Smart Contracts: A Beginner’s Guide , Also on Hackernoon 5. Top 10 Reputable Blockchain Development Companies , Also on Hackernoon I am Mayank, Cofounder of EngineerBabu . Feel free to reach out to me on LinkedIn | mayank@engineerbabu.com (About EngineerBabu — Medium ). In addition Help startups, enterprises, and owners to grow their business by building high class IT solutions. 95% of projects developed by them were completed on-time. , Win most innovative Premier Design Award, selected in Y-Combinator 2016 \u0026 2017. EngineerBabu 30+ funded by VCs","arweave":"YI6918W9FcdNlJaKXERGCjdnJWkQddQE54jkZiWypa8","createdAt":"2018-07-30T12:42:43.699Z","excerpt":"The 21st century is all about technology. With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology.","featureImgColor":"rgb(4 251 4 / 70%)","firstSeenAt":false,"id":"blockchain-technology-explained-introduction-meaning-and-applications-edbd6759a2b2","imageSizes":{"https://hackernoon.com/images/1*ADoVy9VNrOnxt2nyDeycfA.gif":{"width":800,"height":600},"https://hackernoon.com/hn-images/1*_gk4ghuW3NJKtBL5JGc3Xg.jpeg":{"width":1000,"height":670},"https://hackernoon.com/hn-images/1*BFAXukYjLCVB8jMFOjT_rA.jpeg":{"width":800,"height":400},"https://hackernoon.com/hn-images/1*PaIAxaUZ3F5SGZQoFxMN6g.jpeg":{"width":1000,"height":670},"https://hackernoon.com/hn-images/1*qqJRXkqOwCDo23CyRLN8Gg.jpeg":{"width":1000,"height":670},"https://hackernoon.com/hn-images/1*9wK0VOvs0fjJ_PjAvz-MoQ.jpeg":{"width":2083,"height":1396},"https://hackernoon.com/hn-images/1*MvWVXhce6mNzkx7I5sXUVQ.jpeg":{"width":1000,"height":670},"https://hackernoon.com/hn-images/1*3yyJZkyCtkdD4IiilCwTTQ.jpeg":{"width":800,"height":400}},"mainImage":"https://hackernoon.imgix.net/fallback-feat.png","mainImageHeight":500,"mainImageWidth":1000,"mentions":[{"image":"https://s2.coinmarketcap.com/static/img/coins/64x64/18679.png","name":"Chain","id":"XCN","collection":"coins","manual":false},{"image":"http://logo.bigpicture.io/logo/meetbunch.com","name":"BUNCH","id":"bunch","collection":"companies","manual":false},{"image":"http://logo.bigpicture.io/logo/gapinc.com","name":"Gap","id":"gap","collection":"companies","manual":false},{"image":"https://hackernoon.com/images/avatars/YUmLSpfAVscbyEtE0XicubFWeFO2.jpg","displayName":"Satoshi Nakamoto","handle":"SatoshiNakamoto","collection":"profiles","manual":false,"url":"https://hackernoon.com/u/SatoshiNakamoto"},{"image":"https://hackernoon.com/images/jsO9w3qxg7c2CzW8dBW6mroBR2r1-so034yu.jpeg","displayName":"Blockchain Development","handle":"blockchaindevelopment","collection":"profiles","manual":false,"url":"https://hackernoon.com/u/blockchaindevelopment"}],"owner":"mayankpratapeb","parentCategory":"web3","parsed":"\u003ch2\u003eReplenish your fears against Blockchain.\u003c/h2\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*9wK0VOvs0fjJ_PjAvz-MoQ.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003e\u003ca href=\"https://www.engineerbabu.com/\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eThe 21st century is all about technology. With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a new addition to the pack i.e. Blockchain Technology.\u003c/p\u003e\n\u003cp\u003eBlockchain- The revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used in the place of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as Blockchain.\u003c/p\u003e\n\u003cp\u003eThere’s a common misconception among people that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of Blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of the blockchain technology.\u003c/p\u003e\n\u003ch4\u003e\u003cstrong\u003eWhat is a Blockchain?\u003c/strong\u003e\u003c/h4\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*BFAXukYjLCVB8jMFOjT_rA.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eWhat is Blockchain ? — \u003ca href=\"https://www.engineerbabu.com/\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eIn the simplest terms, Blockchain can be described as a data structure that holds transactional records and while ensuring security, transparency, and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A blockchain is a distributed ledger that is completely open to any and everyone on the network. Once an information is stored on a blockchain, it is extremely difficult to change or alter it.\u003c/p\u003e\n\u003cp\u003eEach transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot be changed.\u003c/p\u003e\n\u003cp\u003eBlockchain technology allows all the network participants to reach an agreement, commonly known as consensus. All the data stored on a blockchain is recorded digitally and has a common history which is available for all the network participants. This way, the chances of any fraudulent activity or duplication of transactions is eliminated without the need of a third-party.\u003c/p\u003e\n\u003cp\u003eIn order to understand blockchain better, consider an example where you are looking for an option to send some money to your friend who lives in a different location. A general option that you can normally use can be a bank or via a payment transfer application like PayPal or Paytm. This option involves third parties in order to process the transaction due to which an extra amount of your money is deducted as transferring fee. Moreover, in cases like these, you cannot ensure the security of your money as it is highly possible that a hacker might disrupt the network and steal your money. In both the cases, it is the customer who suffers. This is where Blockchain comes in.\u003c/p\u003e\n\u003cp\u003eInstead of using a bank for transferring money, if we use a blockchain in such cases, the process becomes much easier and secure. There is no extra fee involved as the funds are directly processed by you thus, eliminating the need for a third party. Moreover, the blockchain database is decentralised and is not limited to any single location meaning that all the information and records kept on the blockchain are public and decentralized. Since the information is not stored in a single place, there’s no chance of corruption of the information by any hacker.\u003c/p\u003e\n\u003ch4\u003e\u003cstrong\u003eHow Does a Blockchain Work?\u003c/strong\u003e\u003c/h4\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*MvWVXhce6mNzkx7I5sXUVQ.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eHow does Blockchain work — \u003ca href=\"https://dribbble.com/shots/4760742-Blockchain-technology-how-it-works-illustration\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eA blockchain is a chain of blocks that contain data or information. Despite being discovered earlier, the first successful and popular application of the Blockchain technology came into being in the year 2009 by Satoshi Nakamoto. He created the first digital cryptocurrency called Bitcoin through the use of Blockchain technology. Let’s understand how a blockchain actually works.\u003c/p\u003e\n\u003cp\u003eEach block in a blockchain network stores some information along with the hash of its previous block. A hash is a unique mathematical code which belongs to a specific block. If the information inside the block is modified, the hash of the block will be subject to modification too. The connection of blocks through unique hash keys is what makes blockchain secure.\u003c/p\u003e\n\u003cp\u003eWhile transactions take place on a blockchain, there are nodes on the network that validate these transactions. In Bitcoin blockchain, these nodes are called as miners and they use the concept of proof-of-work in order to process and validate transactions on the network. In order for a transaction to be valid, each block must refer to the hash of its preceding block. The transaction will take place only and only if the hash is correct. If a hacker tries to attack the network and change information of any specific block, the hash attached to the block will also get modified.\u003c/p\u003e\n\u003cp\u003eThe breach will be detected as the modified hash will not match with the original one. This ensures that the blockchain is unalterable as if any change which is made to the chain of blocks will be reflected throughout the entire network and will be detected easily.\u003c/p\u003e\n\u003cp\u003eIn a nutshell, here’s how blockchain allows transactions to take place:\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eA blockchain network makes use of public and private keys in order to form a digital signature ensuring security and consent.\u003c/li\u003e\n\u003cli\u003eOnce the authentication is ensured through these keys, the need for authorization arises.\u003c/li\u003e\n\u003cli\u003eBlockchain allows participants of the network to perform mathematical verification and reach a consensus to agree on any particular value.\u003c/li\u003e\n\u003cli\u003eWhile making a transfer, the sender uses their private key and announces the transaction information over the network. A block is created containing information such as digital signature, timestamp, and the receiver’s public key.\u003c/li\u003e\n\u003cli\u003eThis block of information is broadcasted through the network and the validation process starts.\u003c/li\u003e\n\u003cli\u003eMiners all over the network start solving the mathematical puzzle related to the transaction in order to process it. Solving this puzzle requires the miners to invest their computing power.\u003c/li\u003e\n\u003cli\u003eUpon solving the puzzle first, the miner receives rewards in the form of bitcoins. Such kind of problems is referred to as proof-of-work mathematical problems.\u003c/li\u003e\n\u003cli\u003eOnce the majority of nodes in the network come to a consensus and agree to a common solution, the block is time stamped and added to the existing blockchain. This block can contain anything from money to data to messages.\u003c/li\u003e\n\u003cli\u003eAfter the new block is added to the chain, the existing copies of blockchain are updated for all the nodes on the network.\u003c/li\u003e\n\u003c/ol\u003e\n\u003ch4\u003e\u003cstrong\u003eBlockchain Features\u003c/strong\u003e\u003c/h4\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/images/1*ADoVy9VNrOnxt2nyDeycfA.gif\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eFeatures of Blockchain — \u003ca href=\"https://dribbble.com/shots/4218845-Blockchain\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eThe following features make the revolutionary technology of blockchain stand out:\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eDecentralised\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eBlockchains are decentralized in nature meaning that no single person or group holds the authority of the overall network. While everybody in the network has the copy of the distributed ledger with them, no one can modify it on his or her own. This unique feature of blockchain allows transparency and security while giving power to the users.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003ePeer-to-Peer Network\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eWith the use of Blockchain, the interaction between two parties through a peer-to-peer model is easily accomplished without the requirement of any third party. Blockchain uses P2P protocol which allows all the network participants to hold an identical copy of transactions, enabling approval through a machine consensus. For example, if you wish to make any transaction from one part of the world to another, you can do that with blockchain all by yourself within a few seconds. Moreover, any interruptions or extra charges will not be deducted in the transfer.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eImmutable\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe immutability property of a blockchain refers to the fact that any data once written on the blockchain cannot be changed. To understand immutability, consider sending email as an example. Once you send an email to a bunch of people, you cannot take it back. In order to find a way around, you’ll have to ask all the recipients to delete your email which is pretty tedious. This is how immutability works.\u003c/p\u003e\n\u003cp\u003eOnce the data has been processed, it cannot be altered or changed. In case of the blockchain, if you try to change the data of one block, you’ll have to change the entire blockchain following it as each block stores the hash of its preceding block. Change in one hash will lead to change in all the following hashes. It is extremely complicated for someone to change all the hashes as it requires a lot of computational power to do so. Hence, the data stored in a blockchain is non-susceptible to alterations or hacker attacks due to immutability.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTamper-Proof\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eWith the property of immutability embedded in blockchains, it becomes easier to detect tampering of any data. Blockchains are considered tamper-proof as any change in even one single block can be detected and addressed smoothly. There are two key ways of detecting tampering namely, hashes and blocks.\u003c/p\u003e\n\u003cp\u003eAs described earlier, each hash function associated with a block is unique. You can consider it like a fingerprint of a block. Any change in the data will lead to a change in the hash function. Since the hash function of one block is linked to next block, in order for a hacker to make any changes, he/she will have to change hashes of all the blocks after that block which is quite difficult to do.\u003c/p\u003e\n\u003ch4\u003e\u003cstrong\u003eTypes of Blockchains\u003c/strong\u003e\u003c/h4\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*_gk4ghuW3NJKtBL5JGc3Xg.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eTypes of Blockchain — \u003ca href=\"https://www.engineerbabu.com/\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eThough Blockchain has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.\u003c/p\u003e\n\u003cp\u003eBefore heading towards the difference between these two, let’s keep a check on the similarities that both public and private blockchain have:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eBoth Public and Private blockchain have peer-to-peer decentralized networks.\u003c/li\u003e\n\u003cli\u003eAll the participants of the network maintain the copy of the shared ledger with them.\u003c/li\u003e\n\u003cli\u003eThe network maintains copies of the ledger and synchronizes the latest update with the help of consensus.\u003c/li\u003e\n\u003cli\u003eThe rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eNow that we know the similar elements of both these blockchains, let’s learn about each of them in detail and the differences between them.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003ePublic Blockchain-\u003c/strong\u003e As the name suggests, a public blockchain is a permissionless ledger and can be accessed by any and everyone. Anyone with the access to the internet is eligible to download and access it. Moreover, one can also check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain.\u003c/p\u003e\n\u003cp\u003ePublic blockchains allow the communities worldwide to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. Moreover, the rules decided and applied initially have very little scope of modification in the later stages.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003ePrivate Blockchain-\u003c/strong\u003e Contrary to the public blockchain, private blockchains are the ones which are shared only among the trusted participants. The overall control of the network is in the hands of the owners. Moreover, the rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization etc.\u003c/p\u003e\n\u003cp\u003ePrivate blockchains can run independently or can be integrated with other blockchains too. These are usually used by enterprises and organizations. Therefore, the level of trust required amongst the participants is higher in private blockchains.\u003c/p\u003e\n\u003ch4\u003e\u003cstrong\u003ePopular Applications of Blockchain Technology\u003c/strong\u003e\u003c/h4\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*3yyJZkyCtkdD4IiilCwTTQ.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eApplication of Blockchain Technology — \u003ca href=\"http://evontech.com/what-we-are-saying/blogger/listings/sumeet2k06.html\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eThough Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors.\u003c/p\u003e\n\u003cp\u003eWhile the basic idea of trustworthy records and giving the power in the hands of users has enormous potential, it sure has raised a lot of hype in the markets too. The magic of this technology sure has the power to transform industries given the usage is planned and executable in actual senses. Let’s separate the wheat from the chaff and find out how Blockchain can be useful in actual implementation.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eSmart contracts\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eDifferent businesses deal with each other in order to exchange services or products. All the give and take terms and conditions are signed by the involved parties in the form of agreements or contracts. However, these paper-based contracts are prone to errors and frauds which challenges the trust factor between both the parties and raises risks. Blockchain brings forward an amazing solution to this problem through Smart Contracts.\u003c/p\u003e\n\u003cp\u003eSmart contracts perform similar functions as paper-based agreements. The differentiating factor about smart contracts is that these are digital as well as self-executable in nature. Self-executable meaning that when certain conditions in the code of these contracts are met, they are automatically deployed. Ethereum, an open source blockchain platform has introduced smart contracts in the Blockchain ecosystem. Smart contracts can be used for different situations or industries such as financial agreements, health insurances, real estate property documents, crowdfunding etc.\u003c/p\u003e\n\u003cp\u003eFor example, Blockchain smart contracts can be used in healthcare to manage drug supply.\u003c/p\u003e\n\u003cp\u003eOnce the name and quantity of a drug is shipped from a manufacturing company to be delivered ahead to the pharmacist, a smart contract with all the valid data like the information of the drug, the quantity of supply etc. can be created. This smart contract will be responsible for managing the entries throughout the entire supply chain between different intermediaries. Since the smart contract works on certain defined conditions, no one can alter them or make any changes in the contract thus, ensuring trust and authenticity of the drugs.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eGovernment Elections\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNo matter how secure government elections are made, the chances of frauds through anti-social elements always persists. The current voting system relies on manual processing and trust. Even if security breaches and frauds are eliminated, the chances of manual errors cannot be ignored. In such cases, the best solution is to automate the overall process with the help of smart contracts.\u003c/p\u003e\n\u003cp\u003eBlockchain smart contracts provide a modern system through which these common issues can be easily eliminated. Entries in the smart contracts will allow transparency and security while maintaining the privacy of the voters thus, enabling fair elections.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eIdentity management\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*PaIAxaUZ3F5SGZQoFxMN6g.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eIdentity Attributes on Blockchain — \u003ca href=\"https://www.engineerbabu.com/\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eThe world is getting more digitized with every passing day. Consider financial transactions happening online for instance, you can easily login with your credentials and security pin in order to access your funds. However, in this case, no one can ensure the identity of the person taking out the money. If your username and password are hacked by someone, there’s no way to secure your money.\u003c/p\u003e\n\u003cp\u003eThe need of the hour is to have a system that manages individual identification on the web. The distributed ledger technology used in blockchains offers you advanced methods of public-private encryption using which, you can prove your identity and digitize your documents. This unique secure identity can work as a saviour for you while conducting any financial transactions or any online interactions on a shared economy. Moreover, the gap between different government bodies and private organizations can be filled through a universal online identity solution that blockchain can provide.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eIntellectual Property Protection\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eDigital content or information can easily be reproduced and distributed with the aid of the internet. Due to this, people from all around the world hold the power to copy, replicate and use it without giving credits to the actual producer of the content. There are copyright laws to protect such issues but in the current scenario, these laws aren’t appropriately defined according to common global standards. Meaning that any law which is valid in the US might not stand true in Australia.\u003c/p\u003e\n\u003cp\u003eEven if there’s any copyright applied to any intellectual property, people easily lose control over their data and suffer on financial terms. With the aid of Blockchain technology, all the copyrights can be stored in the form of smart contracts which will enable automation in businesses along with the increase in online sale thus, eliminating the redistribution risk.\u003c/p\u003e\n\u003cp\u003eBlockchain for IP registry will help the authors, owners or users to get clarity of copyright. Once they register their work online, they’ll own the evidence which will be tamper-proof. As blockchain is immutable in nature, any entry once stored on the Blockchain cannot be changed or modified. The owner of the work will have the overall authority over the ownership as well as the distribution of the content.\u003c/p\u003e\n\u003ch4\u003e\u003cstrong\u003eConclusion\u003c/strong\u003e\u003c/h4\u003e\n\u003cp\u003e\u003cimg src=\"https://hackernoon.com/hn-images/1*qqJRXkqOwCDo23CyRLN8Gg.jpeg\" alt=\"\"\u003e\u003c/p\u003e\n\u003cp\u003eExploring Blockchain — \u003ca href=\"https://www.engineerbabu.com/\"\u003eImage Source\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eOther than these few examples, the revolutionary technology of Blockchain holds a high potential of applications in many different industries and sectors. While some industries have already started adopting blockchain in their businesses, many are still exploring the best possible ways to start with.\u003c/p\u003e\n\u003cp\u003eBlockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies. More areas of applications are being discovered and tested with each passing day. Once the technology is adopted and accepted on a global level, it’ll transform the way we live today.\u003c/p\u003e\n\u003cp\u003e— — — — — — — — — — — — — — — — — — — — — — — — — —\u003c/p\u003e\n\u003ch4\u003eRead My Other Related Articles\u003c/h4\u003e\n\u003cp\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e1.\u003c/strong\u003e \u003ca href=\"https://www.engineerbabu.com/blog/blockchain-revolutionizing-banking-financial-markets/\"\u003e\u003cstrong\u003eHow is Blockchain Revolutionizing Banking and Financial Markets\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e, Also on\u003c/strong\u003e \u003ca href=\"https://hackernoon.com/how-is-blockchain-revolutionizing-banking-and-financial-markets-9241df07c18b\"\u003e\u003cstrong\u003eHackernoon\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e2.\u003c/strong\u003e \u003ca href=\"https://www.engineerbabu.com/blog/blockchain-in-healthcare-opportunities-challenges-and-applications/\"\u003e\u003cstrong\u003eBlockchain in Healthcare: Opportunities, Challenges, and Applications\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e, Also on\u003c/strong\u003e \u003ca href=\"https://hackernoon.com/blockchain-in-healthcare-opportunities-challenges-and-applications-d6b286da6e1f\"\u003e\u003cstrong\u003eHackernoon\u003c/strong\u003e\u003c/a\u003e**3.** \u003ca href=\"https://hackernoon.com/how-to-build-a-food-ordering-app-an-ultimate-guide-on-food-ordering-mobile-app-c19441826aca\"\u003e\u003c/a\u003e\u003ca href=\"https://www.engineerbabu.com/blog/how-is-blockchain-disrupting-the-supply-chain-industry/\"\u003e\u003cstrong\u003eHow is Blockchain Disrupting the Supply Chain Industry?\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e, Also on\u003c/strong\u003e \u003ca href=\"https://hackernoon.com/how-is-blockchain-disrupting-the-supply-chain-industry-f3a1c599daef\"\u003e\u003cstrong\u003eHackernoon\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e4.\u003c/strong\u003e \u003ca href=\"https://www.engineerbabu.com/blog/smart-contracts/\"\u003e\u003cstrong\u003eEverything You Need to Know About Smart Contracts: A Beginner’s Guide\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e, Also on\u003c/strong\u003e \u003ca href=\"https://hackernoon.com/everything-you-need-to-know-about-smart-contracts-a-beginners-guide-c13cc138378a\"\u003e\u003cstrong\u003eHackernoon\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e5.\u003c/strong\u003e \u003ca href=\"https://www.engineerbabu.com/blog/top-10-reputable-blockchain-development-companies/\"\u003e\u003cstrong\u003eTop 10 Reputable Blockchain Development Companies\u003c/strong\u003e\u003c/a\u003e\u003cstrong\u003e, Also on\u003c/strong\u003e \u003ca href=\"https://hackernoon.com/top-10-reputable-blockchain-development-companies-7c6eba562b90\"\u003e\u003cstrong\u003eHackernoon\u003c/strong\u003e\u003c/a\u003e\u003c/p\u003e\u003cblockquote\u003e\n\u003cp\u003e\u003cem\u003eI am Mayank, Cofounder of\u003c/em\u003e \u003ca href=\"https://www.engineerbabu.com/\"\u003e\u003cem\u003eEngineerBabu\u003c/em\u003e\u003c/a\u003e\u003cem\u003e. Feel free to reach out to me on\u003c/em\u003e \u003ca href=\"https://www.linkedin.com/in/mayankpratap/\"\u003e\u003cem\u003eLinkedIn\u003c/em\u003e\u003c/a\u003e \u003cem\u003e| mayank@engineerbabu.com (About EngineerBabu —\u003c/em\u003e \u003ca href=\"https://hackernoon.com/how-mayank-pratap-built-engineerbabu-a-profitable-it-service-company-generating-more-than-50-000-per-month-bcd3006bdbb5\"\u003e\u003cem\u003eMedium\u003c/em\u003e\u003c/a\u003e\u003cem\u003e).\u003c/em\u003e\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003eIn addition \u003ca href=\"https://www.engineerbabu.com/\"\u003eEngineerBabu\u003c/a\u003e Help startups, enterprises, and owners to grow their business by building high class IT solutions. 95% of projects developed by them were completed on-time. \u003ca href=\"https://www.engineerbabu.com/casestudies\"\u003e30+ funded by VCs\u003c/a\u003e, Win most innovative Premier Design Award, selected in Y-Combinator 2016 \u0026amp; 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