Why 2019 Belong the Year of Blockchain

Many new innovations have occurred and successful innovations create the Technological Revolution.

One such Revolution is Blockchain. This opens the door of new trends in the near future. The Innovative Entrepreneurs and the out-box thinkers who are keen to expand and grow the digital business possibilities are tracking the flow of this transformation in a big way. Built on distributed, encrypted consensus-based networks.

Brief of Blockchain

The blockchain is known as the underlying technology behind Bitcoin. It uses a peer-to-peer network for computers to validate transactions. The blockchain is a data structure for creating and sharing distributed registers of transactions between a computer network. It allows users to verify transactions immediately without a central authority.

Currently, the use of blockchain development technology is mostly used in the financial and banking sector. Some examples are,

1. US Federal Reserve- They developed a digital cash system using blockchain with the help of IBM.
2. Barclays Bank- It operates dedicated laboratories in London for Bitcoin and Blockchain entrepreneurs, coders and businesses.
3. Citigroup- Citigroup implements ledger distributed technology using blockchain and a test currency called "citicoin".

Key components of a Blockchain

Cryptography

The transaction between the two parties is recorded, maintained and secured cryptographically. Every participant on the network can transact in a secure way without the need for a central authority.

Consensus Mechanism

Successful forking of the chain happens only upon agreement between the parties. There are different consensus mechanisms adopted by block-chains to ensure friction-free, trusted a secured flow of the transaction.

Distributed ledger

A distributed ledger is an asset database that can be shareable. It is maintained cryptographically through the use of keys and is resistant to unauthorized changes.

Decentralized

Blockchain applications are totally decentralized and each of the transactions is stored. The smart contracts at each block cannot be managed or controlled by any single entity. No room for manipulation.

P2P Networks

In Peer-to-Peer fashion, all computers share equivalent responsibility for processing the data. Workloads are shared.

Validity

Checks the validity of data before it actually gets executed.

How do Blockchain works?

The blockchain is an electronic ledger or a digital database which keeps an unchangeable record of data operations. These operations are grouped in "blocks". The data is not centralized and stored across the network. Each and every block is connected to the previous one and time-stamped. These links create chains. Every operation on the data is recorded and confirmed anonymously in a form of a record of events that are shared between many parties. This way blockchain removes the need of a middleman and allows you to convert directly with the dataset stored in the network.

If you notice that, in the blockchain, there is no central point of vulnerability to be exploited. The technology is transparent and safe. Each generated record (entry of the database containing information) is verified by most devices and permanently saved. This is important, once entry is created that cannot be removed from the database.

From the IT perspective, blockchain transactions are based on asymmetric cryptography method and use two keys, private and public. In practice, it works as follows,

A sender made transactions using his private key,

A transaction is being forwarded to a network node and it waits to be taken into the block. Miner calculates the next block of the blockchain.The block is broadcasted in the network.

The network verifies the block based on a consensus algorithm that decides which copy of data on the network is authorized and which is invalid by keeping track of the entire blockchain.

When verified, the block is added to a chain which represents an ineffaceable and transparent record of transactions

Transaction Accomplished.

The Trend of Blockchain Development

The attractiveness of Blockchain can well be gauged by the attention that it has been getting. Take a look at the latest Google trends to result for Blockchain search. This can be the first step towards projecting the popularity of Blockchain. You can see that this technology started gearing up well from 2016 and rose to a phenomenally good level in the year 2017.

With Bitcoin trading upwards of $10,000, the total market capitalization of this technology. Top Companies like Walmart and Pfizer have completed successful blockchain pilots.

Below are the some of the important benefits associated with implementing blockchain technology,

Trustworthy system

Data structure build using blockchain allows users to make and verify transactions without third-party involvement. This strongly avoids the risk of a backdoor transaction and unauthorized intervention. The more expanded environments, the more difficult it is to tinker with data. Modification of historical data is only possible if one has a large team and working simultaneously across data centers. This reduces the possibility of data tampering and creates a robust system.

Transparency

The distributed ledger structure provides the control of all their information and transactions to the users. Blockchain data is complete, accurate and persistent with all the members. Changes to the public blockchain are accessible to all the members, thus creating transactions reduces the clutter and complications of multiple ledgers.

Faster Transactions

The Physical markets even working with digital documentation takes a longer time to execute transactions. Interbank transactions especially are non-working can potentially take days for clearing and final settlement. Blockchain transactions can decrease transaction times to minutes and are processed 24/7. An instantaneous can reduce transaction times to minutes and energy, potentially save billions from increased back-office efficiency and automation.

Reduced transaction costs

According to the report of the European Banking Association on crypto technologies, major technological innovation, and catalyst for change, blockchain technology can be used by banks to reduce governance and auditing costs and offer better products faster.

Conclusion,

The blockchain is already booming in Baking and financial sector. Nowadays, various Industries are looking forward to the development of blockchain along with mobile app development. In coming years we see many new Industries who are implementing and run a successful business with Blockchain Development.

Vidhi Pansuriya is like to write articles about tech trends on App and web development, Digital Marketing, and Seo. Currently, she is working with Tecocraft - A leading App development company based in UK and India.