Block Chain Technology with full Knowledge:- The Blockchain is an encrypted, distributed database that records data. It is a digital ledger of any transaction, contracts that need to be in independently record. In financial sector, with blockchain technology the participants can interact directly and can make transaction across the internet without the interference of a third party. With all the fraud resistant feature, the blockchain Technology holds the potential to revolutionize various business sector and make process is smarter, secure, transparent, and more efficient compared to the traditional business process.
How Blockchain work?
When a new transaction or an edit to an and existing transaction comes into a blockchain, generally a majority of the nodes within a blockchain implementation must execute algorithm to evaluate and verify the history of the individual blockchain block that is proposed.
If a majority of the nodes come to a consensus that the history and signature is valid, the new block of transaction is accepted into the ledger and a new block is added to the chain of transaction. If a majority does not concede to the addition or modification of the ledger entry, it is Denied and not added to the chain.
This distributed consensus model is what allow blockchain to run as a distributed ledger without the need for some central, unifying authority saying that transaction are valid and which ones are not.
Advantages of Blockchain Technology
There are some advantages of blocks and Technology as follows.
- It allow smart device to speak to each other better and faster.
- It allow the removal of intermediaries that are involved in Record Keeping and transfer of assets.
- The data that are entered in blockchain based system are immutable which prevent against fraud through manipulating transaction and the history of data.
- It brings everyone to the highest degree of accountability.
- It provides durability, reliability and longevity with decentralised network.
Challenges of Blockchain Technology
- To verify all the transactions huge power, i.e. electricity is required.
- Blocks in a chain must be verified by the distributed Network and it can take time. So, transaction speed can be an issue.
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