Blockchain TechnologyDecember 10, 2023
What is Blockchain Technology?
Blockchain is a method of recording information that makes it impossible or difficult for the system to be changed, hacked, or manipulated. A blockchain is a distributed ledger that duplicates and distributes transactions across the network of computers participating in the blockchain.
Q – What industries will Blockchain technology benefit from?
Answer: (Summary) Blockchain is the Internet. So it is beneficial for all industries.
It may be difficult to understand “what the big deal” when you say Blockchain because most people have not been exposed to it yet. When explaining what Distributed Ledger is, it is not clear and can be more confusing. In fact, if you want to understand easily, you can see Blockchain as the Internet.
The current Internet can be called Centralized Internet. DNS servers are under the control of the respective server owner. Services such as Facebook, Google, Twitter, and Amazon are under the control of their respective owners.
Blockchain is Decentralized Internet. Anyone can participate as a node on a network that spans globally. Facebook has spread its servers all over the world. Yes. The difference is that the Facebook servers that are spread around the world are under the direct management of Facebook, and all the information on these servers is under its control. In the Blockchain network, because anyone can participate as a node, the information is no longer controlled by someone. Being on a public network has happened.
So, what if people want to access that information? It is the essence of Blockchain that it has been developed so that it cannot be done like that. Cryptographic technologies are used and are currently mainly used in the finance industry, so they are called Cryptocurrency. It’s actually much broader than that. I can’t tell you how it was done here. You can read it in the short book Bitcoin.
If you still don’t understand it, it doesn’t matter. As a basic summary, if you remember that Blockchain is Distributed Internet, you can see a little more than before.
So, in summary above, Blockchain technology is beneficial for all industries. There is no need to ask which industry the Internet is beneficial to. It can be seen that it is beneficial for all. Media, Commerce, Healthcare, Finance, Science & Technology, Employment, etc. There is hardly any sector that is not benefited by the Internet.
How does “Blockchain” works?
The way Block Chain Technology works is according to the concept of Linked list..
A Block is a Group of Validated Transactions (A Group of Validated Transactions) that will be carried out in the process.
In the case of Transaction, it can be a Database transaction, it can be a Bank transaction, it can be any other kind of transaction.
The Validated Transaction is generated using the Hash Function and the Unique Hash code is generated.
Hashing Functions are Cryptographic Algorithms used in Digital Signature.
Here, if the Block is modified somewhere, the Unique Hash code will also be changed, so it must be deleted from the Block chain.
The meaning is that it cannot be edited or destroyed except the person who created the transaction.
There is the question of where the block chain will go next…
Block chain is a distributed network (or Peer-to-Peer network) that is sequentially connected to the network nodes.
In the network nodes, users and participants who will use these blocks to carry out their own activities will use the information they want.
In other words, this is called a Distributed Ledger System.
The Distributed Ledger System cannot be edited by the initiator of the transaction, but other people can use it.
There is a question there… What kind of users may want to add new blocks to the nodes that receive the block chain.
The person who confirms the information contained in the blocks of the block chain needs to create a new block, generate a hash code and add it to the block chain.
The first block is approved by the next block…
The creator of the new block that is approved is called a blocker… so he gets a reward.
This means that you receive a consultant fee for creating a block that confirms.
So Block Chain Technology is very suitable for Proof of Work
In addition, if the Blocker checks and approves the creator of the new Block, it is very suitable for Proof of Authority (true/false work).
Where can “Blockchain” Technology use?
- Proof of Work Proof of Authority can be used to verify e-Government processes such as Citizen Identification, Healthcare records for health care, Life insurance and Insurance records.
- Citizens’ e-Voting System can be used to confirm whether or not they have the right to vote in the elections.
- Blockchain is currently widely used as a cryptocurrency, mainly in the finance sector. Loan under the title DeFi, savings exchange Financial services such as investment are being implemented as decentralized without the need for centralized organization control.
The advantages of Block Chain Technology
(1) In Internet Technology, there was no technology that anyone could hack. However, Block Chain Technology can be said to be Unhackable Technology.. What is needed is because of the power of its technologies such as Distributed & Share Ledger system, Smart Contract, Cryptocurrency etc..
(2) Therefore, it is suitable for reliable information exchange and use (Trusted Data Processing) in connecting and using the businesses of stakeholders with different types of business.
(3) In addition, we can conduct Trusted Audit Trails.
If you understand how Block Chain Technology works, the simplest example is the concept of Data Structure that you learned in my undergraduate course, you will understand more clearly.