The process of collecting and storing data in a diversified way with a cluster of computers without any authority over it, but equally contributed and owned by everyone is called the Blockchain technology.
It is the most secured way of passing a information from one place to another, as for each information a block would be created, it would then be verified for legitimacy by every computer present in the chain, and finally added gets included with unique data record. It is used for monetary transactions and is believed to be the most secured way of information sharing.
Example of Blockchain Technology
To explain Blockchain Technology is a lay person terms, while purchasing a flight ticket the buyer needs to pay some commission to the agent and the credit card transaction which can be totally nullified once blockchain is implemented. As the two parties involved in this transaction would be the buyer and the aircraft company, and since the ticket is absolutely a new data with unique transaction history there is no need for a third party presence to facilitate this transaction.
Additionally, this could absolutely disrupt the business models of Uber, Airbnb, Swiggy and more as all the buyer has to do is update a small information, like the location they need to travel and the type of car in case of Uber, stay information for Airbnb, and food related information for Swiggy, with that done Blockchain could replace these businesses in future. However, users need to understand that Blockchain also charges some minimum fees for facilitating this process.
For one final picture, there is a MS excel file with several data, and this file is being duplicated millions of times and stored in the number of computers at different locations. Now all these files are simultaneously updated to keep the information precise and that’s exactly what BlockChain Technology is. It has three main components: Decentralization, Transparency and Immutability.
Where can Blockchain Technology be useful?
Blockchain Technology can be used in smart contracts, businesses like Uber and Airbnb which work on sharing economy model, Crowdfunding, Supply Chain auditing, Governance, Prediction markets, Internet of Things (IoT), Identity Management, Data management, Data Centres and more.
