Blockchain technology has been in trend for a few years already. The term is mentioned in conjunction with cryptocurrencies such as Bitcoin. However, its use and potential reach are much broader than even cryptocurrencies and digital assets. If you have been wondering what blockchain actually is and how it can be used in different industries, we will answer all these questions in this blog post. This guide will help you understand the basic principles of blockchain technology and how it is being applied in various fields of human endeavor to make it easier for us to comprehend this new and innovative concept.
What is Blockchain?
In the most basic terms, a blockchain is a type of cryptological secure distributed ledger that stores information about transactions distributed across many nodes. This ensures that once a record has been added to the block, no one can change anything in the past without changing future blocks and the consensus of the network. Think of it as an array of linked blocks where each block includes a list of transactions. With the application of the blockchain technique, the information in a block is nearly impossible to be modified once added to the chain, which contributes to the high security and transparency of the blockchain.
How Does Blockchain Work?
- Decentralization – The databases used in conventional banks are centralized. However, a blockchain stores its databases on a network of computers. This decentralized feature means that there is no central authority that governs the network lending, thus boosting security and transparency.
- Transparency and Immutable Records – Once recorded on a blockchain technology, every transaction is visible to all parties involved and also permanent. This aspect of lack of change gives blockchain the upper hand in applications that demand trust and transparency.
- Consensus Mechanisms – Blockchains employ a consensus algorithm such as Proof of Work (PoW) or Proof of Stake (PoS) to determine whether each transaction is legitimate and should be added to the ledger. These mechanisms confirm or reinforce that all individuals within the network can arrive at a consensus relating to the state of the ledger.
Applications of Blockchain Technology
The most popular use of blockchain technology is probably in cryptocurrency but that does not mean that it is only applicable to it. The technology finds usage across industries such as banking, healthcare, logistics, etc.
Here are some notable applications –
- Banking and Financial Institutions – Blockchains can assist in operating banking processes, identifying fraud, and making transactions transparent. According to PWC research,77 percent of financial institutions are likely to use blockchain as part of an in-production by 2024.
- Supply Chain Management – The application of blockchain technology allows firms to record and follow the supply of products with transparency and effectiveness. This assists with minimizing fraud and mistakes, managing stocks, and aiding confidence in clients. One of the most popular applications of the blockchain in this industry is IBM’s Food Trust blockchain which helps to trace the journey of food products from farm to table.
- Healthcare – Blockchain can protect medical records from being tampered with and provide access only to the owners of the relevant medical data. It also can facilitate the exchange of patient medical records between hospitals and so forth for better treatment. As per BIS Research, the international blockchain in the healthcare market is predicted to grow up to $5.61 billion by 2025.
- Real Estate – Blockchain can streamline real estate transactions by removing paperwork and making them more transparent. The use of smart contracts also enables the automatic enforcement of agreements once certain conditions are fulfilled, thus reducing the time and cost used in transferring property.
- Elections – Blockchain technology can develop a reliable system capable of maintaining transparent elections within which every vote is accurately tallied and no interference is possible. The Baltic country of Estonia has already introduced such a system relying on blockchain technology for voting.
Why Should You Learn Blockchain?
It is essential to comprehend various concepts related to the blockchain since the applications of this technology continue to expand across different sectors. Blockchain is already a promising niche in the spheres of employment and is likely to become one of the most demanded qualifications for professionals in the near future.
Curious about blockchain and want to learn more? At Springpeople, we offer comprehensive courses on Blockchain technology covering every basic and complex concept. Trained by experts in this industry, our courses offer individuals both theoretical and practical insights into this exciting and challenging career.
About SpringPeople:
SpringPeople is world’s leading enterprise IT training & certification provider. Trusted by 750+ organizations across India, including most of the Fortune 500 companies and major IT services firms, SpringPeople is a premier enterprise IT training provider. Global technology leaders like SAP, AWS, Google Cloud, Microsoft, Oracle, and RedHat have chosen SpringPeople as their certified training partner in India.
With a team of 4500+ certified trainers, SpringPeople offers courses developed under its proprietary Unique Learning Framework, ensuring a remarkable 98.6% first-attempt pass rate. This unparalleled expertise, coupled with a vast instructor pool and structured learning approach, positions SpringPeople as the ideal partner for enhancing IT capabilities and driving organizational success.
