As bitcoin gain popularity as a money-making machine in investment options, people do seem to forget the underlying technology behind it and most of the crowd globally are using this as a pump and dump game to earn revenues. Earning revenue by trading certain cryptocurrencies is not bad, but ignoring the underlying technology behind these currencies the “Blockchain” is more important than sticking daily on trading view charts.
So, what’s blockchain? A blockchain is a digital public ledger that organizes data into groups called blocks, each of which contains a collection of data. Blocks have specific storage capacities, and when filled, they are connected onto the previous block, establishing a data chain known as a "blockchain." All additional information added after that newly added block is compiled into a new block, which is then added to the chain after it is filled.
Hence, it’s a public ledger, the first thing that might pop up on the mind of devils would be “What if someone enters a false entry?” well here’s the twist, the only new entry can be entered in the blockchain which is proofed by the other nodes in the network. The verification is done by other nodes on the network and against that they receive a transaction fee in their wallet and this whole process is called mining.
Now, you might have a rough idea of what’s that technology is all about now let's go down to case uses of this technology. This seems like it’ll only help in finance, while it has a major role in shifting the dynamics of the overall finance industry as the Decentralized Finance (Defi) fire spreading around the globe, but it also has the potential to disrupt the industry of supply chain, cybersecurity, healthcare, and many others.
The most important use case of blockchain is in the finance industry. Decentralized Finance is the concept that has frozen the gaze of most audiences around and the reason is simple it allows peer to peer (P2P) payment, and it also has the kind of security that no intermediary party like banks can provide.
The Leverage system by smart contracts and the concept of double-spending are the ones that can cause fundamental changes from the core of the whole finance game. Ethereum and XRP by Ripple are the prominent companies that are working in this domain and are making changes that are not accepted by regulatory authorities as they seem it as a potential threat to their powers.
What if you get to know whole route of the fish on your dining table? Sound’s great right? It can be possible through the integration of the supply chain and blockchain technology. IoT (Internet of Things) allows Internet-connected devices to transfer data to private blockchain networks, which produce tamper-proof records of shared transactions.
So that’s how it works we just simply install IoT chips on the materials in shipment and throughout the shipping process. All of the data can be seen by the relevant parties involved in the shipment by the semi-private ledge, and because of that the data of the temperature, its real-time location, and all of it is shared with the warehouse manager or the logistics personnel. VET (Vechain) is one of the major companies that is working in that space and taking the globe towards supply chain 4.0.
As we all know by now blockchain is a decentralized system, it's suited for high-security environments. A cryptographic method is used to verify and encrypt every information saved blockchain network, resulting in no single access point for a large-scale attack. Due to peer-to-peer connections, where data cannot be edited or corrupted, you may readily discover harmful data attacks with blockchain.
The only possible way of including malicious block is through 51% attack, it’s the concept which is kind of impossible on large scale- but the thing is when more than half of nodes in a network accepts that fraudulent block it’ll get included in the blockchain.