What is Blockchain?
Blockchain, also known as block, is a series of text records that are connected and protected by cryptography. It is a shared, immutable ledger that facilitates the method of recording transactions and following assets in a very business network of computers. Associate in Nursing quality will be tangible (a house, a car, cash, land) or intangible (intellectual property, patents, copyrights, or branding). just about something useful will be tracked and listed on a blockchain network, reducing risk and cutting prices for all concerned. Blockchain, for example, bitcoin blockchain seems complicated, but its core concept is really quite simple. A blockchain is a type of database. Information, or data, in databases is typically structured in a table format to allow for easier searching and filtering for specific information. Large databases achieve this by housing data on servers that are made of powerful computers. These servers will typically be engineered exploitation a whole lot or thousands of computers so as to own the procedure power and storage capability necessary for several users to access the information simultaneously. Such a mode of operation has also shaped the key features of blockchain.
Features of blockchain
1. Decentralization
Blockchain technology does not rely on additional third-party management agencies or hardware facilities, and there is no central control. In addition to the self-contained blockchain itself, through distributed accounting and storage, every node realizes data self-verification, transmission, and management. Decentralization is that the most distinguished and essential feature of blockchain.
2. Openness
The technical underpinnings of blockchain are open source. In addition to the encryption of the private information of the parties to the transaction, the transaction data are open to everyone. Anyone can query blockchain data and develop related applications through the open interface, making the information of the entire system highly transparent.
3. Independence
Based on consensus specifications and protocols (similar to various mathematical algorithms such as the hash algorithm used by Bitcoin), the entire blockchain system is not dependent on other third parties and all nodes can automatically and securely verify and exchange data within the system without the need for any human intervention.
4. Security
As long as 51% of all data nodes are not mastered, it is impossible to manipulate and modify network data arbitrarily, which makes the blockchain relatively safe and avoids the human modification of data.
5. Anonymity
Unless there are legal requirements, technically speaking, the identity information of each block node, no matter the ****previous block**** or latter block, does not need to be disclosed or verified, and the transmission of information can be anonymous.
Application of blockchain technology
Blockchain has been applied to a wide range of industries, which is especially true in finance, trade, logistics, and technology.
The most common application of blockchain is the transfer of money and payment processing. The most ideal and rational application of blockchain technology is to use it as a method to expedite the transfer of funds from one party to a different. Most transactions transmitted over a blockchain can be completed within seconds. When it comes to the monitoring of supply chains, with blockchain, companies can quickly identify inefficiencies in their supply chains and examine items in real-time. With blockchain, we can share data and strengthen copyrights of digital content download. Blockchain provides the ability to vote digitally. It integrates the simplicity of digital voting with the immutability of the blockchain. Blockchain technology is an ideal data backup approach. Using blockchain as a backup source for cloud data centers or other data could protect them from hacking. Common blockchain applications include:
1. Cryptocurrency
From a technical perspective, Bitcoin achieves an electronic cash system where the two parties to a transaction can directly transfer money to each other, without the need for third-party transfers or arbitrations. In June 2019, the Internet giant Facebook released the whitepaper for its cryptocurrency blockchain Libra. Both Bitcoin Ethereum and Libra are backed by blockchain technology.
2. The trade and settlement of financial assets
Blockchain technology, inherently related to finance, is disrupting the financial industry. In terms of payment and settlement, under the distributed ledger system of blockchain, market participants jointly maintain and update a “general ledger” in real-time. With blockchain, the payment, clearing, and settlement processes, which previously took days to complete, can now be achieved within minutes. This reduces the complexity and price of cross-bank and cross-border transactions. Meanwhile, thanks to the underlying encryption technology, the ledger cannot be modified by participants, which ensures that transaction records are transparent and safe. Additionally, regulators can easily track the on-chain transactions and quickly locate the flow of high-risk funds. Compared with physical currency, digital currency or cryptocurrency like bitcoin are more portable, with lower circulation costs and stronger anti-fake functions. It is also easier to use and manage cryptocurrencies. Moreover, they transcend geographical restrictions and can be used to better integrate resources.
3. Data preservation
Blockchain proves the existence of a certain document or digital content at a specific time through hash timestamps. This, coupled with its characteristics such as openness, immutability, and traceability, provides a perfect solution for judicial appraisal, identity authentication, property rights protection, anti-fake functions, and traceability. Regarding IP rights, through blockchain’s digital signatures and the on-chain preservation of data, we can confirm the ownership of data such as texts, pictures, audio, and video. By using smart contracts to create and validte transactions, creators can regain their pricing power. Plus, with the power of blockchain, we can preserve data and build a chain of evidence in real-time. We can tell that, in terms of data preservation, blockchain can be applied in three scenarios, covering ownership confirmation, transaction, and rights protection. In the field of anti-fake functions and traceability, by tracking supply chains, blockchain technology can be extensively adopted in fields such as food and medicine, agricultural products, alcohol, and luxury goods.
4. Data service
Blockchain technology will significantly improve the existing application of big data and play a major role in the circulation and sharing of data. In the future, the Internet, artificial intelligence, and the Internet of Things will generate massive data. This means that the existing centralized data storage (computation model) will face enormous challenges, and blockchain-based edge storage (computation) is a potential solution to such future problems. Furthermore, blockchain’s tamperproof and traceable mechanism ensures that there can be authentic and high-quality data, which will be the building block for all data applications such as big data, deep learning, and artificial intelligence. Finally, blockchain achieves data computation involving multi-party collaboration while preserving data privacy. As such, it may address the problems of “data monopoly” and “data silo” and create value for the circulation of data.
