Blockchain Technology and Cryptography
I’m sure from the past ten years you had heard a lot about digital currencies like Bitcoin, Factom or Ethereum. But who is responsible for their keep their record? If you are a technology orientated person surely you had heard about blockchain technology which is mainly responsible for these digital currencies records.
Blockchain technology was first introduced in 1991 by two researchers, Stuart Haber and W. Scott Stornetta to avoid documents stamps tampering. Later in 2009, with the invention of peer to peer digital currency, Bitcoin by Satoshi Nakamoto the blockchain got its first workingapplication as its protocol was made on blockchain. If you are not sure about how this technology works then don’t worry, in this article, we explained to you how blockchain technology works in simplest and easiest words:
If we break the name block and chain separately then we will see how easy is to understand this term complexity. This technology consists of growing data in form of blocks after one another thus creating a chain.
The block stands for lists of records while the chain is for the database, these blocks are linked together by cryptography. The ‘’hook’’ in data chains are a cryptographic hash of the previous data block which is its unique code. Let’s discuss the terms in detail:
A single block can hold 1 MB of data i.e., it can old thousands number of transactions in itself. Blocks are pieces of information consisting of three modules;
- Store transaction information; stores time, date and amount of your recent purchase in dollars
- Hide your legal information and uses a digital code for transactions also stores information about transaction participants; your name will be written along company names like Apple Inc. and your purchase will be recorded by using your ‘’digital signature’’.
- Uses a unique code called hash to distinguish one block from other; if you were buying a new iPhone from Apple and later, you decided to buy another one for wife although the new and old transactions will look similar but we can still distinguish blocks from each other due to their unique codes.
The block-chain technology is an amalgam of three advanced technologies:
- Cryptography –for Private Key.
- A distributed Network –for the shared transaction.
- Network service protocol –for transaction records and security measures.
Let’s take an example for better understanding,
You decided your purchases from Apple Inc. and starts a transaction. For blockchain phenomena, a transaction must occur and should be verified after the purchases.
A distributed network consisting of thousands of computers spread across the world to verify your transactions by confirming your transaction information like date, time, dollar amounts and the participants involved in the whole process. All of these complex processes occurs in only the number of seconds. In case of Bitcoin, this distributed network may consist of 5 million computers.
After being confirmed, now it’s time to be stored in the block. Your transaction details, dollars amount along with your digital signature and also apple Inc. digital signature are stored in the block where they join other thousand number of transaction data.
Now, it’s time to give the name to the block i.e., hash code to the block. The unique cryptographic hash code is given to the block after confirming all of the transactions. The block also contains the unique hash code of the most recent blockcode added to the blockchain. After all these processes the block is finally added to the blockchain.
After becoming the part of the blockchain, the added block is publically available for anyone across the globe. You can easily view the blocks on the official websites with time, place and purchaser’s signature name.
The blockchain technology is not limited to the cryptocurrineies or for online transaction yet it has many other uses and applications. Some of these uses are listed below:
- Provides digital Voting:
Do you worry about your vote being used by others? Or being used without your consent wellblockchain technology provides a solution to it. It gives you the ability to vote digitally yet every regulator can notice any network change. It provides the ability of immutability i.e., unchangeable nature of your vote
- Provides smart property:
In this advanced digital world paperwork manipulation is very easy leading to land frauds and other confusions. By use of block-chain technology, papers are being vanished from the whole scene. For land, cars or house buying and selling this technology provides titles that are stored in networks and gives you transparent transaction and ownership. This technology also helps to track and even creating digital wills and inheritance.
- Medical Benefits:
- Internet of Things:
As you can judge it from the name, the internet of things means every kind of technology can be linked with the internet and vice versa for better engagement of digital and physical media including phones, washing machines, music players, automated cars, robotic surgical instruments and even your refrigerator. You can observe people buying patterns with products via this technology and by using certain machine learning and data mining rules it interprets the frequent data items to them.It provides many more applications like in IoT, Financial services, insurance, and music and in The supply chain.