Blockchain is defined as a distributed database that allows secure transactions
without a central authority. It consists
of a series of blocks, each of
which are linked to the previous block by means of a cryptographic hash (which guarantees that no previous block or its contents have been
changed) and contains a set of
transactions from network participants which are being added to the
permanent record of what has happened as given below
The first blockchain implementation is the crypto currency- Bitcoin. In
this context, the replicated database acts as global ledger tracking all crypto
currency transactions between participants. A blockchain transaction refers to
any change in state of a digital asset defined on top of it. It is not limited
to crypto currency. While first generation blockchains were created for crypto
currency application, new generation block chains allows custom digital assets’
definition. There is no central authority for transaction validation here. It
is performed by a peer-to-peer network throughout a consensus process.
Two types of entities compose a Blockchain system: Participants, who
perform transactions secured by means of cryptographic transactions, are
grouped into blocks, which are submitted to a network of nodes, which are to be
validated every time. Every time a block is validated, it is broadcasted to the
network and added on top of the blockchain. Since every block in the block
chain contains a timestamp and a reference to the previous block, the
blockchain is fundamentally a time stamping system represented by the chain of
all blocks, starting from the first block.
There are two main categories of blockchain which are categorized on the
basis of network access permission:
• Permission less: Network access is free and anyone can set
up a node to validate transactions. Bitcoin and Ethereum are the major
examples.
• Permissioned: Network
access is restricted to a set of known participants. Ripple is an example of
permissioned systems.
The blockchain uses cryptography to secure transactions. Participants
create a cryptographic key pair with wallet software to interact with the
blockchain:
• A private key is one in
which the user must not reveal, since it is used to sign transactions and to
unlock crypto currency funds.
• A public key is one where it corresponds to the address of the
associated account. It is used from participant to identify the receiver of a
transaction.
Digital signatures protocols are employed in block chains, in order to
provide authentication and non-repudiation so that only the key-controlling
entity can perform transactions from its associated account.
BLOCK CHAIN
HAS VARIED APPLICATIONS:
Distributed cloud
storage: Block chain data storage will become a massive disruptor shortly since
current cloud storage services are centralized thus the users must place trust
in a single storage provider who control all of your online assets.
Digital identity: Imagine
never having to worry about your digital security every again. It’s a massive
problem in the world. Which is now estimated to cost the industry about $18.5
billion annually, according to a report released Thursday by Distil Networks.
So for every $3 spent, $1 is going to ad fraud.
Blockchain technology tends to offer solutions to many digital identity
issues especially in those areas where identity can be uniquely authenticated
in an irrefutable, immutable, and secure manner. Methods at present use
problematic password-based systems of shared secrets exchanged and stored on
insecure systems.
Digital voting: Using this
technology, a voter could check that her or his vote was successfully
transmitted while remaining anonymous to the rest of the world, thereby giving
enormous security.
Decentralized notary: Another
interesting feature is its timestamp feature where the whole network
essentially validates the state of wrapped piece of data (called a hash) at a
certain particular time. It confirms the existence of at a stated time that is
further provable in a court of law, as a trustless decentralized network.
Blockchain is a highly
disruptive technology that promises to change the world as we know it. The
technology is not only shifting the way we use the Internet, but it is
also revolutionizing the
global economy. Blockchain has applications that
go way beyond obvious things like digital currencies and money transfers. From
electronic voting, smart contracts &
digitally recorded property assets to patient health records management and
proof of ownership for digital content.
Nishita Poddar
Batch 2017-19
Symbiosis Institute of Telecom Management
Nishita Poddar
Batch 2017-19
Symbiosis Institute of Telecom Management
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