Recently, Bitcoin and cryptocurrency have been in limelight. People are slowly and steadily getting exposed to there terms. They are new to many of us. Block chain is the technology behind Bitcoin. Bitcoin was the first application which worked on the principal of block chain.
Dogecoin was a result of a meme. Can you believe it? The meme of a cryptocurrency featuring a dog became so viral that engineers Billy Markus and Jackson Palmer decided to take the advantage of it’s popularity. They launched a cryptocurrency named Dogecoin. Isn’t that hilarious but genius at the same time.
Block chain is the future of data storage and investment. So, if you don’t want to lag behind, educate yourself about it now.
Understanding Block Chain
When you first come across the word, it seems very technical. Many of us don’t even try to get into it’s details because we presume it to be related to finance and technology. We assume understanding these high level terms are beyond our capabilities. But there is nothing so complicated. In fact, block chain is very easy to understand. And it is not only for bankers or technicians, it is for the common man as well.
Block chain technology was invented by Stuart Haber and W. Scott Stornetta in 1991. Block chain is just a database. Now you will be curious to know what database is. A database is nothing but a collection of information stored electronically on a computer system.
Database generally stores information in the form of tables to make it more organized. The information is mainly the transitions that are made all over the world. Block chain stores information in units called ‘blocks’. To break it down, a block is just like a storage box. You store your books in a box. When the box gets filled completely, you take another box and start filling it. Then you keep the boxes one after the other in a sequence. This is how block chain functions.
Each block in a block chain is a storage device. Once it gets filled, data is stored in another block. Each block has a code called hash. It is equivalent to a digital fingerprint. The hash stores the information of the current block as well as the block present before it and the block that follows it. Any sort of changes in 1 block will result in change in the entire hash code. See, it’s so simple.
This gives rise to another question. What is the difference between an Excel spreadsheet and a database? Both of them store information in tabular format. Both of them are used for organising data. Then how is block chain different from spreadsheet?
A spreadsheet is programmed to store small amount of data. It is accessible only by a few people. On the other hand, a database is designed to store a huge amount of information. It can be accessed by anyone from anyplace. While a spreadsheet is controlled by an allotted group of people. A data base has no such restrictions. Such an unimaginable amount of data is stored on servers. In a block chain, the servers are referred to as ‘nodes’.
How a Block Chain Powered Decentralised Applications Works?
When a new transition is to be performed it is transmitted to a network. The transition is verified and hooray, your transition is completed. These transitions are then stored in the form of blocks. They can be traced through any server on the network.
Now that you are clear with what is Block chain?, How it works?, And how information is stored on a block chain, we should try to understand the term ‘Decentralization’. As the term infers de-centralization means without a centre. In the context of block chain, decentralization means that the data is not controlled just by an individual or a groups. It is not concentrate in one location. The serves are located all over the world and there are separate individuals to monitor them.
Each node bears the entire transition history. If there is an error then it can be easily rectified by tallying it with others. Since, the information is not centralised, a single node doesn’t have the power to change it. If some modifications are to be made it is mandatory for all the server operators to agree and make the changes immediately. So, there is no glitch in further operations. Hence, the information is hundred percent correct and secure.
This way of storing information provides transparency and promotes trust. The updated transitions can be viewed anything and anywhere. The transitions can easily be traced back to their source.
Why has there been an upsurge in decentralised applications?
Bitcoin, Dogecoin and other cryptocurrency have seen a massive up rise in the recent times. They are not as old as banking or stock market but have succeeded in making a place in the market. They have gained immense popularity in a very short span of time. The emergence of the pandemic has been a significant contributor towards the increased demand of block chain powered decentralised applications.
Following are the reasons:
- Once you get familiar with the mechanism of block chain you can easily operate it by yourself.
- Investing through block chain powered decentralised applications is safe and transparent.
- Not being able to move out made investors restless. Investing in property became almost impossible. Not being able to go to the site for inspection, delayed registration, and unbelievably high prices made people look for alternatives. Investing in property is not so easy. One has to visit the site, study the papers, and then struggle to find a good price for reselling. But investing through block chain applications made it easy.
- Block chain is not only limited to finance. It can be used to store other important data like legal information, a company’s data, etc. Storing information on block chain is safe. It cannot be altered. It is accessible from any place and it is stored on different systems so there is no scope of losing data. Automatically generated pre-existing data is omnipresent.
- With the ever increasing price of gold and silver, the old school way of investment also failed. Investing in previous metals requires spending generously, which is not feasible for the middle class. Investing through block chain applications is easy and affordable. You can start investing with a minimum amount of Rupees 100. So, every class of the community can try their hand in investment. Even students with limited allowances can start investing for their future. The only disadvantage is the absence of physical form. The ornaments can be used but the cryptocurrency can’t even be touched.
- I agree with the fact that investing in Mutual funds is safe. It doesn’t requires huge capital investment but the process is slow. It requires patience. One needs to wait for long time until they get to reap the fruit of their labour.
- With so many banking frauds taking place, your money isn’t completely safe in the bank lockers as well. Why let your money rest in a safe when you can rest and let the money work instead? You can invest your money in block chain applications and wait for it to grow. Unlike bank transactions, you need not reveal your details to anyone. It can be done round the clock.
- Storing information and making transitions through block chain applications is quick and easy.
- Companies can track the location and deliver of their products using block chain.
- Nobody wants their medical records to be revealed to anyone except the doctor. Medical records are highly personal. Even then they are mishandled. Hospitals can use block chain applications to store these records. If a patient is recommended to another branch of the hospital in any other state, the medical history can be traced by the staff beforehand and prepare for any emergency situation. This can prove to be life saving.
- The process is entirely mechanical. There is very less human interference. This assures accuracy.
- Not just the users but creators have made ginormous profits from block chain powered decentralised applications.
- The transitions are easily traceable. You can monitor your transactions conveniently.
- Hacking a block Chain network is not at all easy. The power and resources required to hack a block chain application are not available with the hackers.
- There are many tutorials available online through which you can learn block chain applications. If you want to know more visit your website.
What’s stored in for future?
Block chain powered decentralised applications may be an ecstasy for many. Many companies and individuals have been benefitted colossally through the technology of block chain. It is safe, transparent, time saving and easy to operate. Still, one need not get blinded by the stupendous glamour of block chain applications. They are not controlled by any government or national bank.
For banking frauds the government may compensate some of your losses but you can’t rely on anyone for a failure in investment through cryptocurrency. Many of the applications may not be even legit or completely legal. Therefore, you need to have complete faith before taking the first step. In-depth study is essential. Although storing information on block chain applications is safe but investments aren’t.
Like every other investment options out there, even investing through block chain is risky. There are fluctuations. There was a time when crypto saw its peak. But good days are followed by bad ones. Nothing is constant. A small delay may cost you a fortune. So, make your choices wisely.
By not taking interest in block chain applications you may loose on a chance to make progress. Denial is not the solution. It may lead to regret later. If the world is putting a step forward, why should you remain in a state of oblivion?
We provide world-class custom software development services to start-ups, small-to-medium-sized businesses (SMBs), and enterprises. So, if you are also looking to implement block-chain solutions, then connect with our team today.