Thanks to Prerit Shah for contributing this article!
In an ordinary business network, tangible or intangible assets change ownership through markets. Transactions are usually recorded in each party’s ledger. It is generally not possible to check that two people’s ledgers match, because no one wants to show everyone a full list of their assets and transactions.
Blockchain aims to solve this by giving everyone in the network a copy of a ledger showing every transaction. This is designed to remove ambiguity and prevent fraud: everyone can verify that a transaction took place, under encryption to protect privacy.
Why Blockchain?
If you’re wondering why people use blockchain, you need to understand its application in the business context. Businesses never work in isolation and connectivity benefits business networks of customers, suppliers, etc. In fact, these networks tend to cross geographical and regulatory boundaries.
The complicated system of business networks, however, has two key problems. First, let’s say two people – Peter and Kevin – are doing business together. If Peter wants to tally the transaction that he has logged in his ledger with the transaction that Kevin has logged in his ledger, he won’t be able to because Kevin would not be comfortable showing all the asset logs to Peter. Second, in much the same way, verifying any contracts can be an issue, leading to exhausting legal disputes.
Blockchain serves as a solution to these problems by allowing transactions to be shared with the participants in a business network. Blockchain is a shared, replicated ledger with smart contracts. It is a ledger that logs each transaction, but it is shared with each participant so that the logs of transactions are always identical. It is replicated; every participant retains a copy to avoid any single points of failure. Smart contracts through blockchain provide a shared set of rules associated with each transaction while offering the ability to remove ambiguity and friction from trade.
Three Pillars of Blockchain Technology
1. Decentralization
Traditionally, centralized systems stored all the user information in one place. This is easier to keep track of the information you need. But it makes the information an easy target for potential hacks. It also requires downtime if the system needs maintenance or a software update. And if the system ever shuts down or gets corrupted, all the data can be lost.
Blockchain provides a decentralized system where everyone in the network owns the information. This also takes out any costs related to third-party interference.
2. Transparency
Transparency means that the flow of assets would be visible to everyone in the network. But it maintains privacy. It does not share identity of the participants. If Peter sent 1 Bitcoin to Kevin, the transaction appearing in the ledger would be something like:
“1MF1bhsFLkBzzz9vpFYEmvwT2TbyCt7NZ sent 1 BTC to
9vpFYEmvwT2TbyCt7NZJ1MF1bhsFLkBzzz”
That long string of gibberish cannot be traced back to Kevin or Peter. If you write someone a check, their bank has to confirm with your bank that you have enough money. The blockchain can do it anonymously.
But cryptocurrencies are just one aspect of Blockchain technology. This kind of transparency can preserve a secure record of transactions in any field. It could be a supply chain saying that one company filled an order placed by another. Or it could be in real estate, tracking ownership of some plot of land. Without blockchain, there are whole government offices devoted to this.
3. Immutability
Immutablilty means that once something has been logged in the ledger, it cannot be changed.
Blockchain uses complex hashing algorithms to store information. These algorithms create strings with the same size, no matter how minor or major changes in the data. Bitcoin, for example, uses SHA-256 which creates strings 256 bits long.
Even if a minimal change in the data would change the hash drastically. The change would appear in all the chain blocks and completely change the chain. This property is known as the “Avalanche Effect.” This is how Blockchain attains immutability.
If someone wanted to add a fake transaction, they would have to find some other data that creates the same 256-bit string. This is not literally impossible, but there is no known way to do it even with the world’s best supercomputers. You can assume that any transaction recorded in the blockchain did really happen.
Uses of Blockchain and Future Scope
The blockchain can cut out the middleman in almost any service model. Currently, finance offers the most use cases. Blockchain GUI devised applications called “wallets” are used to buy things with Bitcoins and to store cryptocurrencies.
Online transactions and identity management technologies are closely related to each other. The blockchain is already used in transactions, so it is safe to assume that it will be used in applications of identity management. The Blockchain is also developing in industries like real estate, education, and health.
Career Opportunities in Blockchain
New technology often brings new jobs. Blockchain is no exception. Common job positions include:
- Developer
- Project manager
- User interface designers
- Quality engineers
- Legal consultants
Resources
Articles on How Blockchain Technology Works:
Mentors
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- Guest Speaker, Indian Institute of Space Science & Technology.
- Guest Speaker, Infinity: The Astronautical Society of UPES Dehradun.
- Core Committee Member, Infinity Space Club.
- Summer Research Intern, INSA Toulouse.
- Team Leader, Lockheed Martin.
- Team Member, DRDO, Centre for Airborne Systems.
- Team Leader – Team Hypervision India Innovation and Design Challenge, Texas Instruments.
- Intern, Hindustan Aeronautics Limited.
- Master’s in Aerospace Systems – Satellite Navigation & Telecommunications, Ecole Nationale de I’Aviation Civile (ENAC).
- Bachelor’s in Aerospace with Specialization in Avionics, University of Petroleum and Energy Studies.
If you’d like to contact me, please send me a message through our Contact page.
Languages: English, Hindi, Urdu | Some French
I am an innovative Information Security professional with expertise in Project Security assurance, Auditing, Governance, Risk, Vulnerability management, Policies, Procedures, incident, and change management.
- Senior IT Security Professional, Cyber Security.
- Senior Information Security Specialist-Security Consultant, Wipro Limited Canada.
- Manager-Cyber Security Operations, GRC Audits, Verizon.
- Assistant Manager-Corporate Cyber Security-Infosys, Verizon.
- Assistant Manager-Corporate Cyber Security Operations, Verizon.
- Tech Lead-NT NBBE SDLC, Verizon.
- Assistant Branch Manager, DBA, IT Security Auditor, Andhra Bank.
- Designing Coordinator, EFFTRONICS SYSTEMS PRIVATE LIMITED.
- Master’s in Banking, IT, Financing, and Law.
- Bachelor’s in Accounting and Financing.
- 3 Information Technology Life Cycle for IS Auditors, LinkedIn.
If you’d like to contact me, please send me a message through our Contact page.
Languages: English, Hindi
- Analog Design Engineer, NXP Semiconductors.
- Graduate Student Intern, NXP Semiconductors.
- Electrical Power System Head, Institute of Technology.
- Master’s degree in Electrical and Electronics Engineering, Delft Institute of Technology.
- Bachelor’s degree in Electronics and Communications Engineering, Manipal Institute of Technology.
If you’d like to contact me, please send me a message through our Contact page.
Languages: English
I am an accomplished PMP Certified Project Manager with more than 20 years of experience leading cross-functional teams to deliver projects for the IT, film, and nonprofit sectors. As an analytical thinker and strategic planner, I implement solutions to increase operational efficiencies, improve reliability, minimize downtime, and reduce costs in order to optimize business processes and maximize profitability. I am recognized as an articulate communicator and respected leader who motivates team members to excel professionally in order to consistently deliver projects on time and to scope to ensure the highest level of customer satisfaction, exceed set goals, and achieve organizational objectives.
- Senior Project Manager, Cloud Services/CIT/NIH.
- President, Casi Cielo Productions.
- Senior Staff Project Manager, National Center for Biotechnology Information.
- Senior Staff Desktop Team Lead, National Center for Biotechnology Information.
- Unix System Administrator, National Center for Biotechnology Information.
- Director Test Engineering and Configuration Management, American Red Cross.
- Bachelor’s in Computer Science, The University of North Dakota.
If you’d like to contact me, please send me a message through our Contact page.
Languages: English
- Assistant Professor, IIIT Kota.
- Faculty Member, Birla Institute of Technology and Science (BITS).
- Doctor of Philosophy, Optical Communication, Birla Institute of Technology and Science, Pilani.
- Master’s in Communication Engineering, Birla Institute of Technology and Science, Piliani.
- Bachelor’s in Electronics and Communication Engineering, M.B.M Engineering College, Jodhpur.
If you’d like to contact me, please send me a message through our Contact page.
Languages: English
- Head Coordinator, Click Club National Institute of Technology (NIT), Raipur.
- Tedx Core Member, NIT, Raipur.
- Interned in Marketing Research, Indian Institute of Management, Raipur.
- Interned in Video Creation and Digital Marketing, Zenitech Techware.
- Member, Team Acelerar.
- Bachelor of Technology in Mechanical Engineering, National Institute of Technology, Raipur
If you’d like to contact me, please send me a message through our Contact page.
Languages: English
I am a Recruitment Specialist by profession and a seeker in nature. I love to learn new things irrespective of its genre and need in my life. My motto is, “Any knowledge is only useful if it serves the life apart from yourself.”
I have spent more than 3.5 years in US Staffing and 10 years in the Travel, Service and Education industries. My skills are: Staffing & Recruiting, Training, Planning, Customer Service and Business Development.
- Associate Manager, Mindlance.
- I’ve previously worked as a Talent Acquisition Executive, Technical Recruiter, Business Analyst, Customer Care Executive (for Ola).
- B.Comp.App. in Computer Science, Indira Gandhi National Open University.
If you’d like to contact me, please send me a message through our Contact page.
Languages: English, Hindi
- Interned in Data Science, Hamoye.com.
- Data Science Trainee, Scholar Network.
- Global Ambassador, WomenTech Network.
- Interned in Data Analytics, Hash Analytic.
- Social Media Marketing Manager, Classic Systems Infotech Limited.
- Data Entry Specialist, CourseDig.
- Social Media Manager, Barsma Social Concepts.
- Social Media Manager, Legit9ja.
- Foundations of Data Science, University of London
- Additional Education in Applied Data Science with Python Specialization, University of Michigan
- Additional Education in Scientific Computing and Python for Data Science, WorldQuant University
- Bachelors in Computer Science, Institut Supérieur de Communication et de Gestion (ISCG) University.
If you’d like to contact me, please send me a message through our Contact page.
Language: English, Yoruba, Creoles and Pidgins | Some French