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What Is Blockchain Technology And Why It Is So Important?

As we know that blockchain technology has become an interesting topic to discuss due to its innovative features. A cryptocurrency called Bitcoin along with the blockchain came into this world in 2008. The Blockchain was invented for Bitcoin with the purpose to facilitate its transactions. The purpose was also to secure Bitcoin and make it available for everyone. 

Our life status has drastically changed due to Internet revolutionization.

Mentioned below are three internet revolutionizations:

1.Transmission Control Protocol (TCP)/ Internet Protocol (IP)

TCP/IP is defined as a suite of communication protocols designed for the interconnection of network devices on the Internet. An intranet or an extranet is defined as a private network using TCP/IP. 

  1. World Wide Web (WWW)

WWW is defined as an information system where unique identifiers called Uniform Resource Locator (URL) identify documents and other web resources. Hypertexts are used to interlink URLs. Hypertexts are defined as texts with hyperlinks. While links or hyperlinks are defined as connections between web pages.

  1. Blockchain Technology

Blockchain technology is defined as a chain of blocks using cryptography. It also is a decentralized, distributed, and open-source technology which doesn’t only store and record cryptocurrency transactions, but also anything of value. 2008 is the year when an unknown person named Satoshi Nakamoto invented the blockchain. The blockchain has features like immutability and verifiability. Records can’t be changed. Every node in the blockchain can verify a block of transactions. Nodes can be active electronic devices like computers, laptop, and mobile phones. Different blockchains use different consensus protocols which are designed with different concepts. 

  • Example1: Transaction Without Blockchain Technology

  1. Ram uses a bank to send Rs.3000 to his brother Shyam
  2. Ram is a sender, Shyam is a receiver and the bank is a third party who verifies and validates this transaction
  3. The third-party has all the information about Ram and Shyam and this information can be deleted, changed, or manipulated
  4. You can’t perform transactions without the permission of the third party.
  • Example:2 Transaction Through Blockchain Technology

  1. Ram sent his brother Shyam Rs.3000 through a peer-to-peer and decentralized network
  2. This transaction is done without the interference of any other third party
  3. It can’t be deleted, changed or manipulated 
  4. You perform transactions without the permission of third parties.                                                                     
  • Decentralized Application (DApp)

A decentralized application (DApp) is defined as a computer application which can’t be controlled by any other third party. It is open-source in nature. Not all decentralized applications (DApps) operate on distributed blockchain systems. BitTorrent, Popcorn Time, BitMessage, and Tor are known as traditional DApps operating on peer-to-peer (P2P) networks. They don’t operate on the distributed blockchain systems. Whitepaper & Prototype, Token Sale, Initial Coin Offering (ICO), and Implementation & Launch are the four steps required for the development of DApp.

  • Smart Contract

A smart contract is a computer program stored on a blockchain. It contains a set of rules which are required to exchange money, property, shares, or anything of value in a transparent and secure way without the involvement of middlemen. The main work of the smart contract is basically to facilitate, verify, and enforce the negotiation of transactions. It is self-verifying, self-executing and time-stamping. It performs the transactions in real-time and brings tremendous cost savings. The use cases of blockchain technology and smart contracts can be found in banking, insurance, energy, e-government, telecommunication, food industry, shipping, energy, healthcare, music & film industry, the art world, mobility, education, etc.

  • Blockchain In Identification

Blockchain technology contributes to the identification. Civic, SecureKey, uPort, and SelfKey used the blockchain for identification. Civic is recognized as a decentralized identity ecosystem who helps businesses and individuals in controlling and protecting their identities. SecureKey is recognized as an identity and authentication service provider. Consumers can have convenient and secure access to critical online services with the help of SecureKey. uPort is recognized as a self-sovereign identity and data platform. Users can register a globally unique identifier to the Ethereum blockchain with the help of uPort. SelfKey is recognized as a blockchain-based self-sovereign identity system. Individuals and organizations can find more freedom and privacy with the help of SelfKey.

  • Blockchain With Other Futuristic Technologies 

Internet of Things (IoT) is an ecosystem that connects physical objects with the internet. Most IoT-powered enterprises face difficulties to identify their breached devices. Blockchain technology is an immutable data ledger used with cryptography. Blockchain+IoT can be used to identify data leakage and provide data protection. Big data is a large set of structured, semi-structured and unstructured data. Data science is the study that obtains insights and information from big data using scientific methods, processes, algorithms, and systems. Big data is basically the quantity and the blockchain is the quality because it helps Big data in controlling and managing various data segments. Artificial Intelligence is created to work and react like humans. Big data is fuel for AI. The main purpose of Big data is to provide descriptive market insights and recommend prescriptive actions to AI. Many tech geeks want to integrate Big Data, IoT and AI with the aim to revolutionize the world in the remote future.

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This article is for informational purposes only. The information is provided by What Is Blockchain Technology And Why It Is So Important? and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. The Blockchain Cafe does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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