Blockchain –Its Meaning,Development and Usage.

Introduction

Blockchain is a distributed ledger ( database that is consensually shared and stored on every computer connected in the system ) that keeps the track of transactions between two parties efficiently and in a verifiable way. Every transaction is linked to the chain using cryptographic principles in batches, making blocks. As the name suggest, these blocks form a chain and each blocks has a unique identifier code, which makes it possible for them to connect with the previous and subsequent blocks.The series is managed and stored across several computer systems.

Why Blockchain Technology was developed?

Blockchain is the point of view of developers who believed that the current banking system contained many drawbacks. They viewed banks acting as third-parties, who asked the accountholders to pay for transaction fees unnecessarily, and they even mocked at the idea that payment validation and settlement could take up to five working days in cross-border transactions. With blockchain, real-time transactions are a possible even across various countries, while banks are left out with the option of reducing transaction fees.

Where can we use Blockchain?

 Blockchain has the ability to revolutionize the retail experience by becoming the go-to for loyalty rewards. By creating a token-based system that rewards consumers, and storing these tokens within a blockchain, it would incentivize consumers to return to a certain store or chain to do their shopping. It would also reduce waste commonly generated with paper- and card-based loyalty rewards programs. Country facing issues like voter fraud ? Well, worry no more it can be resolved with blockchain technology. Blockchain offers the ability to vote digitally, but it's transparent that any regulators would manipulate with the number of votes, we can keep a track of it. It simplifies the ease of digital voting with the immutability (i.e., unchanging nature) of blockchain to make your vote truly count. It is a is a developing field and its practical uses are being explored in many areas. 

More about Smart Contracts!

Like other blockchain applications, smart contracts are immutable, it ensures that our information is not stolen, lost or manipulated without proper permissions. This security is especially useful for guaranteeing the authenticity of copyrighted products, job certificates, titles, deeds and a myriad of other credentials and applications. Looking at the present scenario, the benefits of smart contracts are guiding new innovations in the field of automation and supply chain logistics. Here is an image which shows how the smart contracts work.

 Smart contracts are being used in many industries. In the Utilities industry, smart contracts governs the distribution of energy in microgrids. Devices in a microgrid are linked by smart sensors enabled by the internet of things (IoT). These devices supervise energy usage and reduce unwanted energy distribution while generating smart contracts based on the consumer’s real-time usage. Buyers in the field of microgrid acquire their energy needs from their local prosumer through a digital transaction. This transaction is usually governed by a smart contract and the transaction is completed via the exchange of cryptocurrencies. With the help of blockchain, a world in which contracts are embedded in digital code and stored in transparent, shared databases can be imagined. Many applications of blockchain technology is found in several industries, where the trust without the involvement of a centralized authority is desired. 

Overall, Blockchain will be an essential skill for future as it tackles important aspects of errors, fraud, misinterpretation and works efficiently in the trust less environment. The people across the various countries have discovered many applications of blockchain technology in several industries.There are risks with using this nascent technology. However, if SMEs tread carefully, there are also huge advantages of blockchain. In the coming years, this technology will revolutionize business processes in many industries.

References:

https://www.fool.com/investing/2018/04/11/20-real-world-uses-for-blockchain-technology.aspx

https://www.tutorialspoint.com/blockchain/index.html

https://medium.com/the-mission/a-simple-explanation-on-how-blockchain-works-e52f75da6e9a