XinFin explains what is Blockchain and why you all should be aware of the Blockchain Technology.

Discussion in 'XDC Development' started by Kavita Gupta, Jan 5, 2018.

  1. Kavita Gupta

    Kavita Gupta Active Member Staff Member

    Here's Why You Should be Familiar with Blockchain

    While blockchain gave birth to bitcoin ten years ago, the now-viral cryptocurrency has outshone its parent; especially this year when bitcoin saw its meteoric rise in price and intrigue. Blockchain has been in the limelight for a few years now but there can be possibly three categories where people can be divided - one is the niche community that understands, breathes and is in love with blockchain. They are the ones who are probably already in the tech community or are already working with it in some way or the other. Second, is the group of people who are confused about what exactly it does and how it operates. Third, is the group that is armoured with articles, news items and videos on the basics of the blockchain, but are potentially as clueless as the second group.

    This article aims to be an eye-opener to the latter two groups about this technology that the media just won't shut up about. Why this big fuss about blockchain and its possibilities? Why is it receiving the media mileage that it has in the past one year and what can businesses gain out of it? These are a few questions that this article will attempt to address.

    What is Blockchain exactly?

    Blockchain, in its simplicity is a distributed ledger that chronologically records transactions in real time. It is a protocol for exchanging value over the internet without an intermediary. It is a decentralized, secure and an immutable system that allows transactions to happen in a near real time which provides players with unparalleled flexibility, speed and security in conducting their specific operations through blockchain. The immutability (read irreversible nature) makes it nearly impossible for changes to be made once established, which increases the confidence in data integrity and reduces opportunities for fraud or corruption.

    There are types to it too

    There are classically three categories of blockchain - public, private and permissioned.

    Public blockchain is one where one can read or write on the platform, provided they can show proof of work. Bitcoin is the arguably the most popular use case of the blockchain. It is a digital currency which is created and traded in a decentralized manner where no one verifies or monitors its transactions amongst participants. The software behind Bitcoin is an open source; meaning anybody can join the blockchain network and use to transact electronically.

    A private blockchain is where only chosen players have the rights to join the network which then creates a closed loop environment. For instance, the collaboration between a blockchain firm and a stock exchange where the former provides the latter's customers' trade private company shares using blockchain technology. That way, only shareholders have permission to access, change and read the data. Limited permissions provide a great level of security.

    A permissioned blockchain, on the other hand, offers selective transparency where selected nodes have rights to access or provide their consensus on the transaction. For instance, if there is a consortium of ten banks on a blockchain led platform, all banks can interact with each other freely, trade or share invoices without the need to give permission to other banks to access the shared data.

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