What is Blockchain technology? How Blockchain technology works

 Introduction to Blockchain technology: Step By Step Guide

Hello friends, 

So if you are reading this blog then there is 90% or more chance that you already know about Bitcoin. I am saying this because on 17 December 2017 price of 1 Bitcoin was reached 19,783USD which is around 20,000USD and then the world knows what bitcoin is. It was surprising that the price of 1 bitcoin could go so far because in 2010 a person purchased two Papa John's pizza for 10,000 bitcoins which is worth about 30$ that time. Wait, what! 

If we calculate the price of bitcoins he used to purchase two pizza that time on the basis of the highest price ever of bitcoin then the result is 1,978,30,000 USD. This means the person who purchased those pizzas for 10,000 Bitcoins becomes a billionaire if he sold his bitcoins in 2017.

You might be wondering why I am talking about Bitcoins, while we are here to talking about Blockchain Technology this is because if you know about bitcoin then you have also heard the name of Blockchain. If you don't know about Bitcoin then don't worry I talked about Bitcoin further in this blog but the currently the query is What is Blockchain Technology?

Blockchain Technology Explained: 

Blockchain is the brainchild invention of a group of person or a person called Satoshi Nakamoto and his team. In the simplest way, we can say Blochain is a technology or collection of programs which provides peer to peer transfer of economic transaction over a network.

But what Blockchain actually is?
According to Don and Alex Tapscott (Authors of the Blockchain revolution 2016)
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Blockchain is originally block-chain which is in simplest terms increasing list of transaction records called Blocks. Each of these Blocks containing data is linked with each other with cryptographic principals. These Blocks are very secured and together it formed Blockchain.

How Blockchain Works:

Blockchain is a simple way of transfer of information from a person to another person in a fully automated and safe manner. Whenever one party do a transaction, it initiates the process by creating a block. This Block is then verified by millions of computers distributed around the network. Then the verified block is added to a blockchain which is stored around the internet. This chain after stored creating a unique record of the transaction with a unique history. If you are trying to foul play of these records would mean falsifying the entire chain which is nearly impossible because of millions of instances.

Properties of Blockchain technology:-

• The blockchain has no central authority.
• The information in the blockchain is open for everyone.
• It is transparent in nature that means no one can track data inside blockchain if they want to.
• A blockchain has no transaction cost (but has an infrastructure cost)
• There is no centralized version of the information exists for a hacker to corrupt.
• Its data is hosted by millions of computers simultaneously.

Applications of Blockchain technology:-

1. Financial applications- There are various financial applications of blockchain technology like trade processing and settlement, insurance claim processing, cross border payments, etc.
2. Smart property application- For example unconventional money lenders, car/phone lock system, 
3. Internet of things application-  Internet of things is the future of technology. With the help of blockchain technology, smart appliances can be more secure using encrypting service and it is very papular nowadays in supply chain sensors.
4. Government applications- Like voting in elections, smart contracts, etc.
5. Blockchain identity- Blockchain helps in keeping the identity like passports, birth/death certificate safe in a digital way. 

These are some of the applications of blockchain in which this technology is very helpful but there are many ways in which we can utilize this technology. 

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