Blockchain – To improvise your business
Posted: Jan 19, 2019
Whenever the investors hear the term ‘Blockchain’, most probably they think of cryptocurrencies. Which are mainly digital currencies, operated independently from a central bank. Bitcoin is a most well-known cryptocurrency. Beyond this concept of cryptocurrency, there is much more to understand and invest in blockchain technology and the ecosystem which powers it.
The global blockchain technology market has been forecast to grow to USD $2.3 billion by 2021. Observers have deemed the technology as disruptive because of the blockchain’s ability to transform the way transactions and operations occur across industries and sectors. Nine in ten government organizations plan to invest in blockchain technology in 2018 to gain the purposes relating to financial transaction management, asset management, contract management, and regulatory compliance. According to an IBM report surveying, there are 200 government officials in 16 countries. More than USD $500 million in global venture capital was invested in blockchain and blockchain-adjacent startups in the year 2016. Only a year later, 2017 shows the growth of USD $900 million invested in the technology’s fintech applications. 2018 is already anticipated to surpass 2017’s record. As the blockchain ecosystem develops a staple technology platform like the cloud and the internet that prior it so we can say that, investors have the ability to capitalize on unparalleled levels of growth and innovation.
When Bitcoin comes in a picture in 2009 many of us heard about the term "Cryptocurrency. Which is known as one of the top digital currencies in the world. But in 2016 this technology becomes skyrocketed. Cryptocurrency commonly refers to digital currency or asset. Which was created to secure the medium of transactions of money. In the development industries, they are known as Coin, Token & ICO.
Many of us initially ignored the term Cryptocurrency as it is a temporary thing. Which will no longer available. But now we truly understand that cryptocurrencies are here to stay for long.
Do you consider Coin and a Token in the same way?
Well, then sorry you are wrong here. I need to correct you. Most of the people, including many professional investors, think that both coin and token represents the same thing. which is not actually true. Coins and tokens are absolutely two different types of cryptocurrencies. We can say that Tokens are the soft forks from the coin.
Coin – Cryptocurrencies that operate on their own blockchains. examples bitcoin, Litecoin, etc.
Tokens – Which operate on an existing blockchain system like Ethereum.
The blockchain is a collection of transaction ledgers. Since coins have their own blockchains. The coin always maintains their own network of transactions. While tokens always make use of the underlying blockchain technology for verifying their transactions. For the transaction of money and other financial assets, coins are considered ideal. We can use Tokens for Creating smart contracts for various things. We can easily purchase coins in the exchange market. For the exchange of popular coins, tokens are usually sold through ICO.
Build Your Own Blockchain
Likewise, we discussed before, building a coin will require you to have your own blockchain. Here, you have two options –
- You can either build a blockchain from scratch or
- You can modify an existing blockchain according to your coin requirements.
Well, you should know basic of blockchain and how it works?
So what is Blockchain?
A blockchain is a distributed ledger technology and the digitized place where information of value, such as transactions or assets, can be logged and tracked into an online and sharable repository. The blockchain is a general ledger made up of the chain of blocks, which is collectively managed by users. While most digital transactions are centralized, blockchain is known as most decentralized and is a peer-to-peer sharing platform.
There are different types of blockchains, with their structure and dependent on the what type of data stored. If the stored data relates to transactions somehow then one block could contain information regarding a sender, receiver and the amount of value being exchanged. All of this data is contained in a uniquely generated string, basically known as cryptographic hash or hash in short. A hash has some identifying properties and works much like how a fingerprint identifies a person, that is a unique identity for everyone. Each block has its own hash and also the hash of the previous block as it is connected with a chain. Basically hashing mechanisms maintain order and ensure secure activity within the blockchain, making it difficult to tamper with any record in the ledger once it’s shared among parties.
Changing a single block in the blockchain will make all the blocks invalid. New hash for new message rule is applied. The authenticity of a new block must be validated by hashing technique before added to a chain.
The blockchain is publically distributed online technology. By downloading a copy of blockchain onto their computer or node, anyone can join the blockchain network. With the help of consensus, different parties, within and between organizations, can gain access to the blockchain and add information to it. The blockchain is often known as a "distributed ledger technology" because of this. Blockchain empowers the users to engage in decentralized and accurate transactions. which can include everything from currency transactions to supply chain orders to even medical records. To ensure they are accurate and up to date, these records can be accessed online.
The Blockchain and Cryptocurrency
Basically, blockchain is known for being the underlying technology behind cryptocurrencies such as Bitcoin. To know how cryptocurrencies work, it’s important to understand the concept of "fiat money". Fiat money is known as a Money that is issued, authorized and backed by a central authority like a bank or government. Cryptocurrencies are non-fiat, digital currencies. Which are created and managed by their user on a blockchain network. This cryptocurrency is used like ordinary fiat money to make transactions. But their transaction details are facilitated and approved within blockchain instead of any financial authority like banks. Because of this decentralized feature cryptocurrencies are largely free from regulators, which can result in quicker transactions and exempt users from incurring bank fees or credit card charges. People who are known as "miners" are responsible for the creation of new units cryptocurrency – essentially new blocks on a cryptocurrency blockchain.
Some of the Steps involved in Process of building blockchain system are as follows:
- Firstly identify the right subject matter which blockchain can do. i.e Data verification, smart contracts, and smart asset management.
- Secondly finds the method of agreement (consensus) that makes the perfect sense for your blockchain idea.
- Choose the right blockchain platform from options. like BigChainDB, Corda, Eris: DB, Ethereum, Multichain, Quorum, etc.
- Decide the terms and features for node creation.
- Configure the blockchain for various elements. As like permissions, key management, asset issuance, parameters, block signatures, etc.
- Creating APIs for smart contracts, key pair & address generation, data storage, and access, etc.
- Design the UI & admin panel by front-end programing language, external database & web server.
- Future technologies like Artificial Intelligence (AI), Cloud, Data Analytics, Machine Learning, etc. Implemented.
Some of the sectors in which you can invest as a blockchain
Digital ID verification and KYC/AML using blockchain –
For many businesses, combatting identify fraud and anti-money laundering regimes is a laborious and ever complex task. Blockchain technology has the potential to lower the cost of running and accessing databases, which is useful for many of the fields. It is an immutable transparent data storage regime can be a great tool to build robust international KYC/AML databases.
Some of the problems like Hacking attacks, loss of data, online fraud that wiped out billions of dollars of value every day for consumers and corporations. Blockchain technology can be used in conjunction with the existing products for building better and cheaper tools to combat cyber-crime.
Fintech and digitizing assets –
Blockchain can be very useful for the financial sectors. for example, digital trading tokens, digitizing stocks and bonds and that represent underlying real-world assets.
Digital Collectibles and Games –
In multiplayer online games, blockchain can be used to power internal economies. Where virtual goods are swept for tokens. It is also used to digitize the collectibles such as celebrity trading cards.
Enterprise software –
In industries as diverse as logistics, pharmaceuticals, banking, and education, blockchain has been used. Wherever there is a need to eliminate a central depository of data and allow participants to transact together in a fast and trustworthy manner, blockchain technology will be applied there.
Beyond the concept of cryptocurrency, there is much more to understand and invest in blockchain technology. Investment in blockchain is not only a chance to support the future of computing but also to gain profit from its rise. However, you should not miss an opportunity of the investment through which improvisation of your business will occur.
We, at Blockchainerz, has carved a niche in the field of Blockchain app development by creating, deploying custom decentralized Blockchain application and infrastructure support to be fast forward your business to get ahead of your rivals.