The concept of blockchain first come into existence in 1991 by Stuart Haber and W. Scott Stornetta, but it becomes popular when a programmer or group of programmers called Satoshi Nakamoto introduced Bitcoin in the year 2009.
It is a technology used for storing information in the form of interconnected blocks across a network of decentralized systems called nodes. It became so popular due to its unbreachable security, unmatched level of transparency, next to impossible alteration process, and decentralized databases.
It is an evolving technology whose existing implementation is a large-scale proof of concept running on very inefficient systems, but through lots of experimentation and iteration, it will definitely become something that is hard to imagine right now.
Let’s take an example of the internet in the context of blockchain
In the early 90s which was the time of web 1.0 also known as the first generation of the internet. Works only with HTML and was static in nature where only the information is shared efficiently.
In the late 90s which was the time of web 2.0 the second generation web, allow users to interact, collaborate and become creators of content. On the other hand, new server-side scripting technologies like PHP also came into existence that allows users to build applications and can write information in the database. Almost all website that rules the internet today is based on this server-side scripting technology.
Web 2.0 is evolved as a highly centralized internet which raises the issue of security, privacy, control, and the power in the hands of centralized database owners.
It’s a very strong belief of the researchers that web 3.0 will eliminate the cons of web 2.0 by using blockchain technology. Web 3.0 will eliminate the dependency on top-level structure (centralized databases) and will focus on the low low-level structure (individual machines) which will help in developing better applications and better internet. IPFS (Interplanetary File System) is one of the best example of web 3.0.
Properties of blockchain
Decentralized
Instead of saving information at one place blockchain stores information on various nodes across the network in a systematic way which eliminate the need of any governance and third party to manage the databases.
Reliability
as the data stored on various nodes , it offers extreme reliability and almost 0% downtime and can survive any failure without any data loss.
Genuineness
Once the data is stored in a blockchain then its next to impossible to alter it because of distributed ledger (same set of data stored at all the connected nodes)
Transparent
As the same set of data stored on all the connected nodes the data is transparent to everyone with a public and private key.
Secure
It ensure security of data with the help of validation nodes, cryptographic hash, and proof of work.
Consensus
Blockchain uses a smart consensus algorithm where each active node of the network vote for an entry, if the result is more than 51% then the entry approved and added to the blockchain.
Faster settlement
It offers faster and direct settlement by using smart contracts and eliminating third parties.
Use of blockchain technology in various sectors
Banking
Blockchain can improve the banking sector by reducing complexity in processes and increasing efficiency and authenticity in various operations like International payment transfers, KYC of their customers, approving loans, and trade finance etc.
Healthcare
Patient data management : Blockchains could be used to save the patient’s basic information like age, gender, medical history. Such data could be used by the researchers with the owner’s permission and can give some healthcare benefit to the user by giving some healthcare points which later converted to money.
Drug traceability : It can also be used to trace the drug from its manufacturer to supplier to retailer to doctor to patient.
Media
Blockchain will help in maintaining comprehensive database of music copyright and can help in calculating royalty amount in fast, secure and transparent manner.
Government
Voting : Blockchain allows a voter to cast their vote with their exact identity and also check whom he votes for, it will help eliminate redundant and dishonest votes.
Tax Collection : Blockchain can make this process easier with the help of smart contract through which the tax amount is automatically calculated and send to the government and also make refunds to the customer if needed.
Education
Student educational information : blockchain can be used to secure students educational information which helps in maintaining authenticity.
There are many other usecases too like bigdata, cyber security, IOT, record management, supply chain management, travelling and trip booking, etc.
Conclusion
Blockchain can revolutionize the future and businesses are very well aware of it. As blockchain technology offers plenty of usecases, on the other hand the amount of security and reliability it offers are enough to allure any business to adapt it.