What is Blockchain? Blockchain Technology Explained.

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What is Blockchain? Blockchain Technology Explained, Uses of Blockchain, Key features How does Blockchain work?, Blockchain Definition, Blockchain in India

What is Blockchain Technology? Blockchain Technique Explained.

Context and Background

Blockchain is considered a revolutionary technology for the future economy, but not much information is available regarding the origin of this technology. It is believed that after Blockchain was invented in 2008, this Blockchain technology was discovered to support this crypto-currency. It is a modern technology without which it is impossible to transact bitcoin or any other type of crypto-currency.

What is Blockchain Technology? Blockchain Technique Explained.


What is Blockchain?



  • 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.


Global Condition of Blockchain Explained


-- Today many large global financial companies are considering incorporating it into their operations due to its implications and opportunities.

-- In many developed countries, governments are planning to use blockchain technology for better governance.


What is Blockchain Technology? Blockchain Technique Explained.


-- In 2016, a pilot project based on the Blockchain platform was launched in Russia, in which work is underway to use this technology for the automated voting system.

-- According to a study by the World Economic Forum, more than 90 central banks worldwide are involved in Blockchain discussions.

-- In the last three years, 2500 patents have been registered for this.

Blockchain in India

Of course, bitcoin is just one application of this technology, the use of which is being investigated in many industries. There is a lot of attraction in the banking and insurance sector of India. In fact, many people in these areas are building associations, so that they can make the world aware of the benefits of Blockchain technology at the level of industries.

  • 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.

How does Blockchain technology work?


  • 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:


What is Blockchain Technology? Blockchain Technique Explained.

  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.


Blockchain in Economy and Governance

The Government of India is making all efforts to move towards a cashless economy by promoting digital transactions in the economy. The Internet has changed the scenario of financial transactions to a great extent and the use of new technology has reduced the trend of cash transactions significantly. Sending money from one account to another through cards or any other digital medium, paying a bill, paying at the grocery or drugstore, etc. has become extremely easy. In the future, it may be possible to strengthen all these by using Blockchain technology, but for this, it will be necessary to take the right steps at the right time in the right direction.


What is Blockchain Technology? Blockchain Technique Explained.

Security concerns are also Associated


  1. Internet and digital technology mails have completely changed the way transactions and information are exchanged. Blockchain technology is playing an important role in this.
  2. This has given rise to many apprehensions and questions such as when did digital payments or information transactions take place? ... How did it happen? ... Who did it? ... Whether it happened or not?
  3. Apart from this, the question of examining the safety of transfer and the validity of the transfer is no less big.
  4. Blockchain technology is not used in the case of keeping personal information safe and where there is a risk of leaking of information or information.
  5. The speed of digital transactions in India is much lower than in developed countries, but cases of fraud occur almost daily.
  6. Hacking of debit/credit cards and bank accounts also continues and there is no strong legal system in the country to prevent this.
  7. Incidents of civil information theft, cyber harassment, fraud payments, illegal transactions, and industrial espionage also occur in India.
  8. From this point of view, Blockchain technology will not be beneficial unless a strong technical resistance system is created for it.
  9. There is no clear policy regarding Blockchain in India, nor is there a clear regulatory framework.
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.

Conclusion

It is expected that Blockchain technology will improve the efficiency of all types of transactions by eliminating middlemen and this will also reduce the cost of all transactions. Also, it will also increase transparency and get rid of fake transactions, because every transaction will be recorded and allocated in a public ledger. Today, in the field of cybersecurity, banking, and insurance, concerns are coming up globally and in such a situation, acceptance is increasing about the use of Blockchain technology to make them safe. Experts believe that blockchain can be a gamechanger in current contexts, provided its importance and capabilities are identified in time.

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India Defense News, Politics, Economy, IDRW & Strategic Analysis: What is Blockchain? Blockchain Technology Explained.
What is Blockchain? Blockchain Technology Explained.
What is Blockchain? Blockchain Technology Explained, Uses of Blockchain, Key features How does Blockchain work?, Blockchain Definition, Blockchain in India
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India Defense News, Politics, Economy, IDRW & Strategic Analysis
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