What is Blockchain?
Blockchain is a decentralized and distributed system with details of digital records of transactions. The digital based ledger records are often referred to as blocks. The blocks of individual records are linked together like a chain. Hence it is collectively referred to as a blockchain.
The blockchain was invented by Satoshi Nakamoto for public transaction of bitcoin cryptocurrency.
What does a Blockchain contain?
Blockchain contains information about data i.e. relevant information about transaction, hash which is a unique code for the block, previous blocks hash. The first block which does not have previous block’s hash is called Genesis block. This series of information inside a block helps in tracking the history and difficult to modify the blockchain records hence adds security.
How transactions are done in blockchain?
For a blockchain the decision of adding the transaction to the chain is done by consensus and not by a single administrator as incase of centralized system. The majority of computers connected in the network have to validate the transaction. Also data that is available on blockchain network cannot be deleted from all systems as everybody in the network holds copy of blockchain records.
Uses of blockchain?
In cryptocurrency like bitcoin blockchain technology is very useful. Bitcoin eliminates the need of middle layer of banks and helps in asset to asset transfer as it is without the conversion of currency values based on location.
In real estate, the use of blockchain eliminates the need of notary. The records of real estates buying and selling gets recorded in the blockchain.
In hospital management system blockchain is used to record patients relevant data for doctors to access.