What is Blockchain? Blockchain Technology Explained.

• Just as the Internet was invented by connecting thousands of millions of computers, it has been named blockchain by connecting a long chain of data blocks (data).
• Blockchain technology is an adjustment of three different technologies, including cryptography of the Internet, personal ‘key’ (private key), ie keeping information secret and controlling protocols.
• The first on the secure chain of cryptography was Stuart Haber and W.W. Scott Stornetta worked. By the following year, in 1992, the two were joined by Bayer and improved its design, which made it easier to collect blocks.
• Blockchain is a technology that handles bitcoin and other crypto-currencies. In simple words, it is a digital ‘Public Ledger’, in which the record of each transaction is recorded.
• Once any transaction is entered into the blockchain, it can neither be removed nor modified from there.
• Blockchain does not require a reliable third party such as a bank for transactions.
• Under this, the details of each transaction are recorded in the ledger after being verified by network-connected devices (mainly chains of computers, called nodes).

1. Actually, Blockchain can also be compared to the state of the internet of the year 1990. It is noteworthy that in the last two decades, the ‘Internet of Information’ has changed our society.
2. Now we are entering an era where Blockchain will also be able to do the same thing through the ‘Internet of Trust’ and ‘Internet of Value’.
3. According to a report published in the US newspaper ‘New York Times’, Blockchain technology has the potential to affect the eco-system around the world and almost all the major central banks of the world are doing research on it.

• Keeping pace with the world, some Indian companies have started offering financial services through Blockchain technology.
• With the help of this technology, the Bajaj Group’s NBFC and insurance company Bajaj Finserv are settling claims before travel customers file their information in travel insurance.
• The company is using Blockchain technology to improve customer service. This technique is closely monitored.
• Bajaj Electrical Limited is also using Blockchain technology to eliminate human interference in the bill discounting process.
• There is a consortium called ‘Bankchain‘ in India consisting of about 27 banks in India (including State Bank of India and ICICI) and members of the Middle-East. The association is spreading the benefits of blockchain technology to make businesses safer and to accelerate them.
• In addition, the ‘Institute for Development and Research in Banking Technology’, a branch of the Reserve Bank of India, is developing a modern platform for Blockchain technology.
• It has been started in India as a pilot project in Telangana and Andhra Pradesh, where it can be used as a safe store of data.

• Blockchain is believed to have the potential to drastically change the functioning of all industries. This can make the process more democratic, safe, transparent and efficient.
• Blockchain is a technology that creates a decentralized database of transactions on a secure and easily accessible network.
• This shared record of transactions in this virtual ledger can be viewed by anyone using the Blockchain on the network.
• Blockchain is a series of data blocks (statistics) that each block contains a set of transactions.
• These blocks are connected electronically to each other and are protected through Encryption.
• This technology is safe and difficult to hack. That is why this technology is considered safe to prevent cybercrime and hacking.
• Under this, the details of each transaction are recorded in the ledger after being verified by chains of computers connected to the network, called nodes).

Key features of Blockchain

• Decentralization and transparency are the most important system of Blockchain technology, due to which it is proving increasingly popular and effective.
• Blockchain is a technology designed as a program to record financial transactions.
• It is a digital system, which incorporates Internet technology with great reliability.
• It can store blocks of similar information on its network.
• Blockchain has the ability to distribute the database ie it acts like a distributed network.
• Not all records of a database are stored in a single computer but are distributed across thousands of millions of computers.
• Each computer in the blockchain can describe the entire history of each record. This database is encrypted.
• Even if a computer in a Blockchain system goes bad, the system continues to work.
• Whenever new records have to be recorded in it, it requires the approval of many computers.
• The Blockchain can be easily controlled by a group of users who have permission to add information and can also modify the record of the same information.
• In this technique, the role of intermediaries like banks, etc. are eliminated and person-to-person (P-to-P) direct contact is established.
• This not only reduces the time taken for transactions but also makes the chances of making mistakes very less.

Where can it be used?

In addition to cryptocurrencies, Blockchain technology can be used in the following areas:

1. Information Technology and Data Management
2. The account of government schemes
3. Subsidy distribution
4. Keeping legal papers
5. Banking and insurance
6. Land records regulation
7. Digital identity and authentication
8. Health statistics
9. Cybersecurity
10. Cloud storage
11. E-governance
12. Smart contract
13. Educational information
14. E-voting

The benefits of using Blockchain will vary for all transactions. According to the website Deloitte and Assocham, Blockchain will be more beneficial when the data is high and they have to be shared among many people and there is no sense of trust among them.

This technology will be useful for industries that focus on decentralized data storage, data immutability and distributed proprietary features of Blockchain.

Regulation required
The best and biggest example of Blockchain technology is the bitcoin network. But a virtual currency like bitcoin that uses Blockchain technology can face ransomware attacks. Therefore, it needs to be regulated very carefully. There is currently no initiative to regulate it in India and the budget termed cryptocurrencies like bitcoin as illegal, in which if he invests, he himself will be responsible for it. Be aware that bitcoin is a purely electronic currency, used in exchange, but no country has recognized it except for a few. Of course, bitcoin has not gained global recognition, but in recent years the demand for bitcoin has increased globally as well as in India.