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Building Blocks of Blockchain

Blockchain technology has taken the globe by storm in the last few years. In a broad range of areas, such as banking, real estate, and healthcare, it marked the beginning of an innovative new age. Blockchain and decentralised technologies have gained importance as a result of the growth of cryptocurrencies, such as Bitcoin.

However, Bitcoin’s role in putting blockchain into the public eye was significant. Its greatest achievement was helping people to see how the technology could be used for much more than just digital money transactions, allowing for a wider range of applications.

A brief outline of blockchain technology’s history:

  • 1991

Stuart Haber and W Scott Stornetta describe for the first time a cryptographically secure chain of blocks.

  • 1998

Nick Szabo, a computer scientist, is seeking to build a decentralised digital currency via his work on ‘bit gold.’

  • 2000

Stefan Konst, a cryptographer, discusses his theory of cryptographically secured chains and makes recommendations for their practical implementation.

  • 2008

A white paper explaining the notion of a blockchain is published by an unknown developer (or group of developers) under the alias Satoshi Nakamoto.

  • 2009

Nakamoto develops the world’s first blockchain, which acts as a public ledger for all bitcoin transactions.

  • 2014

Blockchain technology is decoupled from money, and its potential uses in other financial and inter-organizational operations are studied. The phrase “blockchain 2.0” is used to refer to applications other than financial transactions.

The Ethereum system, for example, includes computer programs into the blocks that represent financial instruments such as bonds. They are referred to as smart contracts.

Why the allurement for this decentralised ledger?

1. It aids in the prevention of payment fraud

Blockchain works on a peer-to-peer transaction process where none of the single entity has a say in terms of payment. To change one single block you need to have the consent of all the party members thereby providing for a decentralized approach where no central entity can control the transaction process. This technique would avoid instances when you purchase an item and the seller defaults on his or her commitments.

One of the most often touted advantages of blockchain technology is its capacity to prevent future payment fraud. To begin, it would protect both buyers and sellers via the use of “smart contracts – Himanshu Maradiya (CEO, CIFDAQ)

2. Removes the need for a middleman

The blockchain, a peer-to-peer technology, enables transactions between two parties. This straightforward two-party agreement has the ability to revolutionize the game. We make use of this to be able to provide low-cost electronic currency transactions around the world. For instance, you may send money to friends or family members anywhere in the world without paying the transaction or currency charges associated with traditional banking or financial institutions.

When it comes to transferring a property title or a house deed, technology has the potential to completely remove the need for lawyers, realtors, and banks. Along with cost savings, this would reduce the time required from a day to hours or even minutes.

3. Rather than hours, transactions are finalized in minutes

What if you could sign a contract or get a vehicle title in as little as a day? With blockchain decentralisation and a peer-to-peer (P2P) system, you may instantly execute any digital wallet transaction, rather than waiting days or weeks as with conventional payment systems.

Important Blocks Adding up to the Blockchain

  • Encryption and cryptographic toolsA variety of encryption technologies are utilised, including “public-key cryptography,” to guarantee that identities and transactions on the ledger are authenticated and that the information on the ledger is secure.
  • Consensus mechanismsWhen it comes to the network’s shared ledger (or “chain”), consensus techniques are used to decide whether a “block” of verified operations should be added or rejected.
  • Timestamps and ‘hashing’ of previous blocksEach successive block on the chain contains an encrypted, consistent, and immutable record of all prior blocks.

Benefits of using blockchain technology

  • Real-time identification

When an item is moved, blockchain technology creates an audit trail that tracks the object’s origin throughout its trip. Everyone in the community has a role to play in creating a healthy environment. In this case, you need a solid token exchange. CIFDAQ will be successful because we have the best traders, economists, developers, analysts, and external liaisons in the world.

  • Both efficiency and speed have been increased

Time-consuming, prone to human error, and often requiring the engagement of a third party, traditional paper-intensive systems are inefficient.

  • Automation

Transactions may also be automated using “smart contracts,” enabling you to increase your efficiency while also speeding up the process.

Proof of Integrity

Blockchain technology is continually evolving and adapting, with applications in a variety of sectors, including finance, logistics, and healthcare. This ground-breaking technology will provide the platform for a new era of decentralisation and technological democracy; it will be fascinating to see what innovations are built upon its foundations.

Bit by bit, block by block, several companies from the old world to modern-day diversified industrial conglomerates to contemporary startups are giving it a major thought in which day to day business activities are performed. Blockchain can be that technology addressing those grey areas of transaction and can help in improving the efficiency of not only the transactions but also the record storage by keeping away from the transaction chaos.

The Daily Beat

India's Most Trusted Digital PR Tech Agency.

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