Blockchain is a Distributed Database or Digital ledger Technology that is shared among the nodes of a computer network which is used to store data of any kind. Blockchains are very different from conventional databases because blockchains are totally decentralized, which means they are not maintained at a particular location. Instead blockchain databases are maintained and the data are stored at various computers spread out across a network and these different computers are called the nodes of a decentralized system.
Blockchains are particularly known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. Virtually anything of value can be traded on a Blockchain, thus reducing risk and cutting the costs involved.
The most innovative part of the Blockchain technology is the trust that comes without the need of any third party like Banks and financial institutions.
In any other database, the data is structured in a table format whereas in Blockchain the data is structured through various blocks that are strung together.
Each block is fixed at its particular spot and given an exact timeline when it is added to the chain and it can’t be moved and manipulated.
The Blockchain holds information in blocks. Each block stores data that are linked together via cryptography. After the information is filled in a particular block then the block closes and gets attached to the previously filled block, and each block contains information about the block previous to it, thus effectively forming a chain. The first block of a blockchain is called the genesis block.
The block time is the average time it takes for the network to generate extra blocks in the blockchain. In the case of cryptocurrencies like Bitcoin and Ethereum, the faster the blockchain creates new blocks the more efficient and faster transactions will take place.
What is Decentralization?
At its Core, Decentralized means that the hold of data or any information is in the hands of a single authority, and this means that the power dynamic has shifted to that single authority. But in the case of Blockchain it is not the case, the data is not centralized and is accessible by every node of the network, even though any changes in the data can’t be made but the verifiability of the data can be done and checked by anyone in the network.
Blockchain allows the data to be spread across the network at various locations. Therefore, if anybody tries to alter the data at one place, the other nodes of the database would not be altered and thus making Blockchains very secure. And because of this, information and the data stores in these blocks are irreversible.
Blockchains Vs Banks
Blockchains in Banking are highly possible and will result in more efficiency of the system.
There are a lot of advantages of Cryptocurrencies over Normal Banks. Normal Banks are not open all the time. Whereas you can make transactions at any time of the day through blockchains because there are always some nodes of the network available at any time of the day.
The various different fees that banks often charge their customers like Credit Card fees, transaction fees and other extra charges. But in blockchain there is only one kind of transaction fees that miners usually take to check and verify the transactions. In the upcoming future these mining charges are also going to cut down more than 70% which will make the transaction fees even less.
The Transaction Speed:
The transaction speed is also a lot faster in blockchain network than the normal banks and also the international transfers take more than 24 hours, which is a lot as compared to the blockchain transaction time which is usually as little as 10 minutes.
Bank has all our data, from our photo, our signatures to our other financial records. In Blockchain every Bitcoin or any other cryptocurrency can be traceable but to know who actually owns how much bitcoin is not possible. Every person on the network has their own digital identity through which they make transactions with others. Their Real data is not available and accessible.
Blockchain is a technology that has the power to transform every other industry be it data analytics, banking, gaming, defense, agriculture, commerce, education and more.
And with all these changes comes various opportunities also. So, Right now, there is a huge demand for blockchain developers, who specialize in decentralized applications and smart contracts. There is a 200% hike in blockchain developers from last year and the average salary for these developers is around 15 lakhs per annum in India.
If you are interested to know more about Blockchain technology and to be a part of this new industry, we highly recommend you to check a course on Blockchain technology by Perfect eLearning which is designed for working professionals and students who seek their careers as Blockchain developers.