Essay on Blockchain Technology

Essay on Blockchain Technology

As science is progressing, the world is becoming digital and due to this digitization, there is an unlimited increase in the number of digital data all over the world, due to which the problem of maintenance and management of these data also arises. However, blockchain technology is a technology that has emerged as an alternative to these problems.

Short and Long Essays on Blockchain Technology

Friends, today I am here with an essay on blockchain technology for you with the aim that you will like it and at the same time it will help you to understand the nuances of this technology.

Short Essay on Blockchain Technology 

Introduction (Meaning of Blockchain)

The origin of the word blockchain is composed of two words block (Block) and chain (Chain), here block means data block and chain means the chain formed by joining data block. The data in the data block is encoded and protected by cryptography technology. In this, each block is connected to each other and each block contains a timestamp of the block behind it, a cryptographic hash and transaction data. In this way, the data of each previous block is preserved in the next block as well.

Invention/History of Blockchain

Blockchain technology was first described by Stuart Haber and W. Scott Stornetta in 1991 and a year later (in 1992) Bayer joined them in this research. At the time, its purpose was to timestamp digital documents to prevent alteration or tampering.

After that in the year 2009, Satoshi Nakamoto (a Japanese person) invented Bitcoin based on this technology. Blockchain technology has been in the limelight since that time and looking at its growing field, it seems that it will remain in the limelight for many years to come.

Blockchain technology

In simple terms, blockchain technology is a digital public ledger, which keeps a record of every transaction of an individual and does not require any other party (such as a bank, etc.) to maintain the credibility of the transaction. In this, the verification work is done by devices connected to its network (such as a series of computers, etc.), after verification, the details of each transaction of the person are recorded in the blockchain. Once data is recorded, it cannot be tampered with or altered.

conclusion

While blockchain technology has its advantages, it also has some disadvantages that almost all central banks of the world are trying to assess. According to the American newspaper New York Times, blockchain technology can affect the ecosystem of the whole world.

Big Essay on Blockchain Technology 

Preface

Blockchain is a public database that stores digital information with high security. Generally, it keeps records of cryptocurrency (like Bitcoin, etc.) transactions in multiple computers, which are connected to the same network. Apart from cryptocurrency, it can store all other types of information in digital format. Each subsequent block has a cryptographic hash and a timestamp associated with the transaction records of the previous block, which provides it with high security, it is almost impossible to tamper with or change the data present in it.

Benefits of Blockchain Technology

It acts like a public ledger.

Data is relatively more secure in it.

It is almost impossible to tamper and change the data.

From the point of view of security, there is no need for any third party (such as central authority etc.).

It is based on decentralization of technology. etc

Blockchain wallet

A blockchain wallet (crypto wallet) is a digital wallet in which a person stores and manages their Ether (a type of token), Bitcoin and other cryptocurrencies. Through a blockchain wallet, the user is able to convert and transfer cryptocurrency to their local currency. You can download the crypto wallet app in your mobile. There are two types of keys in crypto wallet. The first one is called public key (Username - receive token from it) and the second one is called private key (Password - check transaction or balance from it).

Types of Blockchains

There are four types of blockchains:

1. Public Blockchain

A public blockchain allows everyone to participate and is based on fully decentralized technology. At present it is mainly used in cryptocurrency exchange and mining.

2. Private Blockchain

Where private blockchains also go to managed blockchains, there is a role of a central authority (a single organization). A private blockchain is only partially decentralized, restricting access to the blockchain by the general public.

3. Consortium Blockchain

A consortium blockchain is a blockchain governed by a group of organizations rather than a single organization, this blockchain is more decentralized than a private blockchain.

It requires consensus among many organizations, so setting it up can be a difficult process

4. Hybrid Blockchain

A hybrid blockchain possesses the properties of both a public blockchain and a private blockchain. Like a private blockchain it is controlled by an organization and like a public blockchain it is accessible to the general public but the records of a hybrid blockchain are not made public but can be verified if needed.

The relationship between blockchain and bitcoin

Blockchain technology and Bitcoin have a relationship between East and West, that is, there is no relationship between these two, they are completely different from each other. Blockchain technology is a platform where many other things besides cryptocurrency can be digitally converted and kept safe. While Bitcoin is a different digital medium, through which some things are bought and sold.

Using blockchain technology

A report published by Harvard Business Review in 2017 states that institutions such as the New York Stock Exchange, Bank of America, etc. are testing blockchain technology as an alternative to paper and human-based transactions.

Apps like Ethereum are trying to decentralize data based on blockchain technology to empower its users over data control.

Many technology-based companies have also started using blockchain technology. Facebook recently announced the launch of its own cryptocurrency called Libra.

 Global Status of Blockchain

Keeping in mind its benefits and opportunities, all the big companies of the world are considering adopting it.

The government is testing it for better governance in developed countries.

Russia started a pilot project (for powered voting system) based on this technology in 2016.

The biggest surprise is that 2500 patents based on blockchain technology have been registered in the last 3 years.

State of Blockchain in India

In India, people mainly from the banking and insurance sector have shown a lot of interest towards this technology, people are busy making the world aware of the benefits of blockchain technology first.

Some Indian companies (such as Bajaj Group's NBFC and Bajaj Finserv, etc.) have started providing financial services to people based on this technology.

'BankChain' is an association of Indian banks which currently has around 27 banks. This association has also started using blockchain technology to make businesses safe and fast.

"Institute for Development and Research in Banking Technology" is a branch of the Reserve Bank of India which is preparing a state-of-the-art platform for safe and easy use of blockchain technology. etc

conclusion

It is believed that blockchain technology will prove to be a boon for businesses in the future, as the removal of middlemen will lead to efficiency and improvement in the transaction process, as well as cost reduction. This will get rid of forgery and transparency in business. Also, the concerns that have come up in the field of banking and insurance and cyber security can also be easily resolved.

Frequently Asked Questions on Blockchain Technology

Q.1 Which state has proposed to establish the first blockchain district in India?

North- Telangana State (in Hyderabad District).

Q. 2 When was the beginning of the concept of decentralization in blockchain technology?

Answer: In 1992.

Q. 3 What is the name of the first block in the blockchain?

Answer – It is known as Genesis Block.

Q.4 When did the concept of blockchain technology first come about?

Answer – In 1991.