What is Blockchain How it works
Have you heard about blockchain? If not, you must have heard about Bitcoin which runs on the blockchain engine. Blockchain is used in various sectors now including education, hospital and banking.
Blockchain is a database. Database is the collection of information which can be used for various purposes. In the database the information is stored in table format in rows and columns for easy indexing and accessing of the data.
Blockchain allows us to store and distribute the Digital information but it does not allow us to edit any information. Blockchain Technology was founded in 1991 by Stuart Harbour. But blockchain got the public's attention first in 2009 with the launch of Bitcoin.
Why is it called the blockchain? Because the information here is stored in different blocks which have limited capacity and each block is connected with another block forming a chain, it becomes a blockchain. The information in each block is stored in encrypted form so that no one can modify the data. This entire network is stored in a series of computers which are called nodes. So if someone is making any changes in one node the entire chain will know about it.
Blockchain updates itself every 10 minutes. So blockchain is safe for Bitcoin. Blockchain helps to distribute the Bitcoin data in different computers in encrypted format so it becomes easy to manage the entire cryptocurrency without Central repository.
Other sectors also can use blockchain very efficiently. For example the banks can reduce the cheque processing from days to within 10 minutes using blockchain. Healthcare providers like hospitals can securely store the patient's data and share it using blockchain.
Benefits of blockchain.
With this transparent Technology the accuracy of the data can be improved.
Since there is no Central repository, it removes the third-party verification and reduces the cost.
Transactions can be secured.
Drawbacks of blockchain.
This technology is not free, so a limited number of people can use it.
Due to its speed it can do a limited transaction for only a second.
It has been used in illegal activities in the past.