Blockchain: Technology for Transparency
To put it simply, blockchain is a list of linked and secured records. In technical jargon, the records are called blocks. They subsequently give rise to blockchain as the records are added to the original chain. A hash pointer maintains the link with the previous block and the record carries timestamp and transaction data. The records are immutable and transpired between the two parties that want to participate in the transaction. As the architecture of blockchain is decentralized and does not need any third party authorization for the transaction, the technology has been at the forefront of creating cryptocurrencies.
Though decentralization is the core element that makes blockchain the most bankable technology, there are other nuances like transaction distribution and safeguarding identities of parties involved in transactions. Blockchain allows the transactions to be performed in the distributed environment where every participant receives transaction acknowledgment and they can trace back the history of transactions and apply the same of set of validation rules. As the blockchain transactions are executed with the exchange of public and private keys, identities of participants are unrevealed.
As blockchain becomes a synonym for transparency, technologists and innovators are building new applications that would challenge the conventional practices and systems. From currencies to supply chain management, blockchain underpins smart contracts, sharing-based applications, governance, and also helps to protect intellectual rights of different assets. Timestamping mechanism and zero role play of third-party authorization make the blockchain the most economical solution. For instance, an art creation can be timestamped for ideation to realization and directly traded with the buyers while safeguarding the authenticity of the creation. While soaring prices of Bitcoin and Ethereum have given the hint of blockchain, there are more path-breaking applications to be put in place.
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