The Upcoming Future in Digital Ledger Technology of “Block Chain”.
Block chain we all know, is a distributed digital ledger, in which the stakeholders of a particular network record transactions in real-time, without involving any central or regulatory authority. Having earned recognition with the surge in the use of cryptocurrencies, especially Bitcoin, Blockchain is a critically acclaimed disruptive technology, which is thriving among businesses across the world. According to Deloitte, 2019 will be the year in which enterprises will further explore the potentials of Blockchain.
It is gaining traction among businesses worldwide; mobile screen interactions are expected to be gradually replaced by AI-enabled conversational interfaces; enterprises are exploring use cases of Mixed Reality; and the Internet users are going gaga over the OTT content; 2021 is going to be the year when businesses will leverage the latest technology trends to unleash the full potential of the digital-driven world and shape the future of work.”
Technologically, Blockchain is a digital ledger that is gaining a lot of attention and traction recently. But why has it become so popular? Well, let’s dig into it to fathom the whole concept.
Record keeping of data and transactions are a crucial part of the business. Often, this information is handled in house or passed through a third party like brokers, bankers, or lawyers increasing time, cost, or both on the business. Fortunately, Blockchain avoids this long process and facilitates the faster movement of the transaction, thereby saving both time and money.
Most people assume Blockchain and Bitcoin can be used interchangeably, but in reality, that’s not the case. Blockchain is the technology capable of supporting various applications related to multiple industries like finance, supply chain, manufacturing, etc., but Bitcoin is a currency that relies on Blockchain technology to be secure.
How Does Blockchain Technology Work?
Blockchain is a combination of three leading technologies:
- Cryptographic keys
- A peer-to-peer network containing a shared ledger
- A means of computing, to store the transactions and records of the network.
Cryptography keys consist of two keys — Private key and Public key. These keys help in performing successful transactions between two parties. Each individual has these two keys, which they use to produce a secure digital identity reference. This secured identity is the most important aspect of Blockchain technology. In the world of cryptocurrency, this identity is referred to as ‘digital signature’ and is used for authorizing and controlling transactions.
The digital signature is merged with the peer-to-peer network; a large number of individuals who act as authorities use the digital signature in order to reach a consensus on transactions, among other issues. When they authorize a deal, it is certified by a mathematical verification, which results in a successful secured transaction between the two network-connected parties. So to sum it up, Blockchain users employ cryptography keys to perform different types of digital interactions over the peer-to-peer network.