It is 2020 and you are hearing the word blockchain for the first time. You stumble upon some obscure article on the internet that tries to define what a Blockchain is. You go through it and soon conclude that it is probably not that important. You think it is probably some new technology fad that will be gone in no time…
…Fast forward to 2022, not knowing about Blockchain is a great matter of concern. You suddenly find yourself an outcast in your peer groups. People younger than you seem to know what a Blockchain, a Crypto or an NFT is. To make matters worse, people even older than you are now holding in-depth conversations about it.
You decide to buckle up. You decide to ask your peers what it means. But lo and behold! What ensues is a barrage of laughter and ridicule aimed at you. People point at you and ask “You still don’t know what a BlockChain is?” or “How can you not know what a Blockchain is?” Out of fear and shame, you look for an alternative.
You go back exactly where you had first heard the word – the internet. Over there you find this blog which will answer your basic yet burning questions related to Blockchain Technology.
What exactly is a Blockchain?
A Blockchain is essentially a ledger. It is a ledger that keeps a record of digital transactions that take place over a network. In Blockchain technology, information is digitally stored in blocks which are then duplicated and distributed over a network of such blocks. Each of these blocks remains connected to each other with the help of nodes.
Image Source: Euromoney.net
Nodes are individual computer systems which are spread across the globe. Anyone with an at par computer system can join the shared network constituting the Blockchain. These nodal systems ensure that all information stored in these blocks remains decentralized, public and without any possibility of being hacked, altered or manipulated.
Why am I hearing about Blockchain this much?
Blockchains have risen to prominence along with the rise in the cryptocurrency wave. Cryptocurrency has probably now reached the pinnacle of its popularity. From investing to maintaining portfolios to even keeping updated on the ups and downs of this viral yet measurable form of digital currency – all of it would not have been possible without Blockchain.
You ask how? This is how.
Cryptocurrencies use the same method of record-keeping as mentioned earlier. It uses blocks forming the Blockchain Technology to store data of the digital transactions that take place. Cryptocurrencies are a type of digital currency that has no central authority operating and controlling its transactions. Due to their great number of similarities, blockchain has thus become the ideal system of information storage related to cryptocurrency.
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Why am I expected to know about Blockchain?
The use of Blockchain goes beyond the role it plays in cryptocurrency transactions. Blockchain has gradually extended itself into the industries of Banking and Finance, Government Services, Healthcare to even Media and Entertainment.
Blockchain is the most recent addition to the list of digital record-keeping technologies. One of its main advantages is that it cannot be altered or manipulated. This makes it one of the safest choices when it comes to maintaining security measures in the Banking and Finance Industry.
The Healthcare industry too would be benefitted from the technology. In the field of healthcare, blockchain has a wide range of applications and functions. Blockchain technology enables medical investigators to uncover gene sequences by facilitating the secure transmission of
- Patient information,
- Managing the drug distribution network,
- And above all, facilitating the confidentiality and security of patient health records.
Thus, it is a disservice to the concept of blockchain technology to reduce it to its mere functionality in the field of cryptocurrency. It harbours a wide range of applications and functions from which a considerable number of industries can benefit.
Simple, isn’t it? That is all you needed to know about the ABCs of Blockchain. Now when someone asks whether you know about it or not, tell them the exact three points listed above. These are likely to help you cover all significant bases before you decide to research further.