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What Why and Where Blockchain.

What, Why and Where.Three basic question structure are common if we want to know something about . so let’s begin.

There is a new technological institution that fundamentally change how we exchange the value and it’s called a Blockchain — Bettina Warburg

What is Blockchain ? ~ The name signifies its structure. It is a collection of blocks that are linked together and form chain. Block contains immutable records. That record generally associated to transactions made with cryptocurrency. Each transaction added to blockchain are replicated to each node present on blockchain and every transaction is validated by multiple nodes in a network.

Why Blockchain ? ~

when we hear any thing on internet the first thing comes into our mind is “Trust”. For establishing trust to its users internet have chosen intermediates. and the major role of that intermediators is to ensure their user about quality, authenticity and security of product which they are selling online.

for example ~ To transfer money from one person to another we relies on bank because banks ensure us about authenticity and security with respect to payments.

Problem with the centralised system is lies with the following things like.

High Transaction fees.

Central Authority can overuse their power.

Copy of Asset.

Double spending.

Slow international transaction.

What banks actually does that it collects money which are deposited by their customers. they invest that 70~80% of total deposited money in some kind of business. and use remaining money to sustain normal banking. Businesses which provide banks higher returns for their investment. by that higher returns banks facilitates their costumers by small incentive as interest.

Example ~ The recent bank fall in India on March 2020. A bank falls down and depositors got panicked when they are bounded by only cash withdrawals under Rs. 50,000.

Here in conventional banking system. The users don’t have any controlled on their hard earned money which they had deposited in banks.

Thats why Blockchain comes into existing.

The major goal of blockchain technology is to eliminate the middleman or centralised authorities in order to establish trust among distinct unknown node present on network. In order to exchange assets.

Seems much difficult to archive but it’s most interesting.

Blockchain is a distributed open system. which is not controlled by any parties. the person who runs the blockchain are their its own users. Blockchain enables network of computer to maintain collective record via Internet.

Blockchain eliminates the middleman by establish trust on each entity present on network.

How do i trust on somebody on network whom i don’t know ?

The role of miners comes into the scenario. Miners are those sophisticated nodes present on network who validate your transaction is valid or not. for doing this work miners got incentive from network. Bitcoin network provides 6.25 bitcoins to miner for validating one block.

What i do if my miner is corrupted ?

This answer is based upon “majority wins���.

Whenever transaction is made on network. There is a race started on network between miners to add block on bitcoin network first and got incentivised. An block consist of multiple transactions and miner have to validate all the correct transaction. It is not that easy to mine a block. For mining a block miners have to solve a difficult cryptographic mathematical puzzle which is assigned by network and have to solved it into 10 mins. and for solving that cryptographic puzzle miner have to consume heavy computing resources and electricity. and after adding a block to network approx 51% of nodes on network have to mark block as valid block and then it will get accepted otherwise not.

 Miner got incentive on adding block to blockchain

Blockchain provides equality to all nodes any one can be a miner or anyone can be individual node.

Blockchain speeds up international money transfer. Then conventional banking system.

All the users have their own control on their hard earned money.

Where Blockchain can be used ?

In Blockchain records are stored in distributed systems which are interconnected. Blockchain reduces vulnerability and increases transparency in all business sectors. Each and every piece of information recorded on the blockchain is public and every participant has a copy of the blockchain. A blockchain is distributed as it is not controlled by a single entity. so no one can corrupt the data present on blockchain.

Stripping away the hype, I believe that blockchain technology is set to revolutionise many industries, Not only in terms of transaction of money but it can revolutionise many use cases such as logistics monitoring, Voting mechanism, Fraud detection, Identity security etc.

By seeing current pandemic conditions blockchain may be serve in places like.

1)Tracing money which is donated in PM care funds or which is donated in any NGO -

This will help donators to establish trust upon NGO. Because they can trace their money. And find out in which way their money is going to spent.

2) Contact Tracing — In an effort to flatten the curve, governments are exploring contact tracing measures to monitor the reach of exposure of infected people. In India most of the bank accounts were linked with the Aadhar card of their owners. Using Aadhar number as identity. If person use to buy anything from nearest store and pay digitally. because paying digitally now days is a most safest option. By maintaining ledger of identity of person and the payments he had made with shopkeepers. Is easy to trace the contact he had made in specific period of time.

3)Voting system — In current situation social distancing plays a very important role to be safe from virus. In country like India which is densely populated it is very difficult to manage elections during pandemic. In this case online voting can be a solution. But voting over centralised system is not consider trustworthy and there are high chances of being hacked in an centralised system. Here blockchain plays very important role to assure trust over distributed system. And it is highly secure as compared to centralised system.