Blockchain Technology and Its Applications

Starting with a detailed introduction, blockchain is simply a type of Database, with some impressive modifications, of course. But before diving into the world of Blockchain Technology, let us understand the simple difference between Blockchain and Database.

For short knowledge, a Database is a collection of information stored in a computer system. But what is the key difference between Blockchain and a Database? The way the data is structured in each of them. A Blockchain holds a compilation of data and binds it into groups (blocks), and then these groups are chained according to actual timestamps. Every block has a particular storage limitation and once filled, the new upcoming data is compiled into the new blocks.

Meanwhile, a database holds a collection of data in tables. So it is like every blockchain is a Database, but not every Database is a Blockchain. Moreover, you will need a crypto wallet that stores your cryptocurrency and safeguards it. Via TechWhoop, you can learn more about the types of crypto wallets and how to choose the best one for yourself. We feature articles and posts related to the latest in technology on TechWhoop, do have a look!

Whenever you Google Blockchain Technology, you would find a very specific but mostly used keyword, i.e., "Decentralized." Now, what is it? We have to flip a few pages ahead to Bitcoins (One of the famous applications of Blockchain Technology), don't worry. We'll be back to the detailed explanation before you even realize it. Bitcoin requires a network of computer systems that stores its blockchains. This blockchain contains each Bitcoin transaction made.

These computers are not located in a single location or under one roof but are distributed throughout various geographic areas (decentralized) and are operated individually. These computers are called nodes, and this is how bitcoins use the decentralized inception of blockchains—interested in knowing how decentralization prevents global bitcoin data theft? Hold on tight.

Bitcoins solely depend on digitally stored data. In a blockchain, each node contains a full record of the data that is stored in it. Now in a network of numerous nodes, if one node suffers an error, it can use other nodes to recover or use as reference points.

Likewise, if an individual tries to tamper with the data in any node, all other nodes would cross-reference till the error is resolved. This method helps to maintain a transparent order of the event. It is like a person revealing their net worth in public but not giving accessibility to them but only to oneself. Thus decentralization prevents massive data theft.

As we are talking, we might also like to discuss another exciting feature of blockchains, i.e., transparency. The decentralized feature allows the transactions to be seen and checked by all the other individual node holders or blockchain explorers. Thus, you can see the transactions live. For example, suppose someone has hacked a node and extracted data from it. Even if the hacker is anonymous, the bitcoins that are extracted are easily traceable.

Okay, now we are here. But before jumping into the other applications, let me tell you that although bitcoins are built on blockchains, there are still some points of difference to argue on. See, blockchains were made to store and distributed accordingly, but it does not allow editing the data stored in the blocks. It was only after the breakout of bitcoins and blockchains that they got their first real-time application. Bitcoins merely use blockchain to avail their ledger of transactions to the public, i.e., the transparent feature. Meanwhile, blockchain can store any number of data points without any mutation.

Apart from bitcoins, there is one more vastly used application that uses the concept of blockchain, i.e., Google Docs and Google spreadsheets. Imagine having your online classes, and the professor shares one of your classmates with a spreadsheet to give your class attendance. Now, this document is distributed among all of your classmates instead of copied or transferred. This creates a decentralized and transparent chain that allows everyone to access or add new names and roll numbers in the document simultaneously.

While you can see new names and roll numbers added in the document live, you cannot edit or remove the already added names or roll numbers. But of course, as I said earlier, Google Docs and spreadsheets use the concept, but blockchains, as you saw earlier, have more elements to know.

Now, let us consider some of the most used real-time applications of blockchain technology.

1. Banking

Not explaining the entire process but the mainstream application, when you withdraw or deposit money into an Atm, it does not even take five minutes to show your transaction status. This is done using blockchain technology. The bank's time to add a new block of capital in the chain is when you receive your transaction status. Blockchain technology is a great change in transferring funds between institutions and individuals.

2. Healthcare

Blockchain in medical fields helps doctors and patients securely transfer medical information. Moreover, it helps the patients to believe that their medical reports cannot be tampered with or changed under any circumstances. Personal health documents can also be encoded and stored with private keys. Therefore blockchain technology is used to store medical records with the utmost privacy and security.

3. Voting

It's no secret that blockchain technology is the key to our modern voting system. This technology eliminates fraudulent votes and the temperament of the existing ballots. The chain of votes is not editable once it is added to, and votes cannot be removed once they are added. People from all over the country can vote simultaneously. Moreover, the decentralized and transparent mechanism made it possible for management personnel to keep tabs on the live voting process.

4. Currency

Blockchain technology is the ground zero of cryptocurrency. Every process of transacting such currencies uses blockchain as its basic process. As we all know, blockchains allow bitcoins and cryptocurrencies to operate without a centralized authority, which reduces the risk of fraud and hacks. This also increases the rolling of capital across a wide network giving stable money rolling to the countries.

These are some of the very few applications of blockchain, while it has many more to discuss. Blockchain technology is surely a new generation technology that has changed our idea of storing and transacting records. While blockchain has many pros, it also has some cons, which we would like to discuss in the below-given chart before we end.

Advantages and Disadvantages