What is Blockchain and How does it Work?

A Blockchain is defined as a simple way of passing information from one point to another that is fully automated and in safety measures.

If a system initiates a process of creating a block, then this block is verified by thousands or millions of computers around the globe. This verified block is somewhat added up in chain-like information, which is stored across the net, which itself is a unique record with a unique history and time-stamp. If a false record is entered, it would false every million stored records of instances, which is quite impossible.

what is blockchain

The main feature of Blockchain is based on 3T which are transactional, transparent and transitional in nature and is used to create a block of information between stakeholders in a decentralized way. Blockchain is nowadays used by various organizations. It is in the form of digitalized globalization currency such as bitcoin. It has created various cost-effective solutions and addresses the various aspect of security and privacy for both parties.

For the first time Blockchain was coined by scientists in the Bell Communication Research lab. In this, it was explained that the first transaction is added to a block called generation transaction or a coin- base transaction. This execution of the process enables a transaction between peer to peer Bitcoin networks, through a process of verification called mining. An important thing to note is that Blockchain is free to process and generate bitcoin, thus it can replace all process and business models that are dependent on charging a very small fee for transactions or you can say a third party or gateway during the transaction. Thus they are very scared of this technology and avoid implementing it.

This could even hamper companies like Amazon, for example, if you purchase an ebook by fitting it with a blockchain code then, instead of giving a cut to Amazon and the credit card company, you can save money and can only pay for the original cost of that ebook. Hence, this can form another way of business transactions.

In the near future, it is sure that the Blockchain would change the way of the stock market, loans and even insurance companies. It all depends upon the convenience and strategy in the market.

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