Block This Chain

What is Blockchain technology? And why does it matter?

Essentially once a chain is blocked, it can not be unshackled, or freed/altered. 

The best I can explain this is with an example. 

Let’s say there is a group of 100 people. Ram and Shyam are two members of this group. All 100 people have a notebook of their own. 

Ram pays Shyam a sum of 100 INR only for services rendered by Shyam to him. Not only Ram and Shyam, but all 100 notebooks are updated with this transaction of 100 rupees from Ram to Shyam. Further once this transaction is added, it can not be altered or changed in any way. It is essentially set in stone. If Ram, Shyam or anyone else in the group wants to change this transaction, they will have to edit/change all the transactions ever happened in this group and the same will be again updated in all the 100 notebooks that are available. This might be easy in our example of 100 people but not so easy when we talk about the entire world and the computational power that keeps this chain running.

This is blockchain, a digital ledger throughout the world, every transaction updated and recorded simultaneously and very very difficult to alter or change. This ensures transparency, fairness and reduces fraud.

This is the basis of modern cryptocurrency technology. Bitcoin/Solana and all others are mined and circulated using blockchain technology and a specific set of parameters designated for them.

The applications have become even more varied now with smart contracts and companies using blockchain tech to optimise their operations and supply management.

What are smart contracts? We will surely discuss it in the coming blogs.