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The Rise of Block Chain Powered Decentralised Applications

block chain applications

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.

Decentralization

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:

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.

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