Had you invested Rs. 1 lakh in Sensex last year, you would get a return of Rs. 1.2 lakh by now. The same investment would give you a return of Rs. 1.7 lakhs if you had invested in Bitcoins. You sure have heard about bitcoins and cryptocurrency. You might have heard about Blockchain technology and have thought that bitcoins and Blockchain technology are interchangeable terms. Well, that's not the case. Bitcoin is just one type of cryptocurrency that operates using Blockchain technology.
A Blockchain is a shared database that consists of blocks of information stored in a digital format. The structure in which data is organized in blockchains differentiates it from a typical database. Blockchain technology is defined as "a decentralized, distributed ledger that records the provenance of a digital asset." The asset mentioned here can be both tangible such as a house, cash, etc., or intangible such as intellectual property, copyrights, patents, etc. Blockchains facilitate the recording and tracking of assets in a business network. It is the Distributed Ledger Technology (DLT) and the use of decentralization and cryptographic hashing that accounts for the immutability yet transparency of digital assets. Let us find out how blockchain training can benefit you.
Popularity Among Youth
It is not just because of the high returns that people invest in bitcoins. When it comes to bitcoins and cryptocurrency, there is a lack of regulation and extreme volatility in the markets. Despite this, blockchain technology can be seen gaining popularity among the Indian youth. Below are some reasons cited by young users who regularly use blockchain technology.
● Well-designed Blockchain trading applications are attracting young people. A percentage of youth regularly invest because of a wonderful user experience. The user interface makes the process of investment and transaction easy.
● A regular user had mentioned that even the biggest banks were not able to put it across in an exact way as to what lay on the screen while they were trading stocks.
● A few others are investing in cryptocurrency for betting purposes.
● A person had taken to blockchain technology for ledger management problems after his family faced land transferring issues.
● A budding young adult said that he had opened an account with a cryptocurrency exchange company after seeing an advertisement about the same. However, when he understood the technology behind the working principle of cryptocurrency, he started investing more and saw his returns grow threefold.
● Not everyone, though, invests for the returns. Many are aware that they will not be able to make payments using cryptocurrency, and that, at any moment, the Government can declare a ban on it. This percentage of the population makes a calculated investment as this is a bet on this future-oriented technology and its focus on decentralization.
Benefits of Blockchain Technology
The popularity of Blockchain Technology lies in its features. Let us see what those are:
1. Security
It is a common occurrence for people to send money from one account to another. When money is being transacted, these records can be mishandled. With Blockchain Technology, the mishandling of the data can be prevented.
The blocks are organized in a linear and chronological manner to the end of a blockchain using a digital signature. Each of these blocks has its own hash along with the hash of the preceding block. Hash codes are created by mathematical functions that turn digital information into an alphanumeric string. Changing the content of the block is extremely difficult, which is what makes Blockchain Technology highly secure. It is not easy for even the system administrator to delete a transaction. Let's understand this:
If a hacker wants to make changes to a blockchain to steal cryptocurrency, his copy would no longer align with the copy of the others. For alignment with the other copies, he will need to make changes to all the blocks. A change in all the blocks of the blockchain not only indicates a new hashcode but a new timestamp on them as well. This would involve a lot of money, time, and resources, and most definitely not being able to remain unnoticed, meaning that the venture would prove to be fruitless and, ultimately, a loss to the hacker.
2. Decentralization
The information in the database is spread out among various network nodes at different locations. This not only helps in accessing the required information should there be a power failure or internet failure in one of the locations but also maintains the fidelity of the data stored in these blocks. Therefore, if a record in one node is tampered with, all other nodes will cross-reference and easily find out the node that has incorrect information.
3. Transparency
With personal nodes or with blockchain explorers, people can see all the transactions, including ones that occur live. Even if hackers are anonymous, the bitcoins that have been extracted or moved can be known. Bitcoin allows the recording and distribution of digital information. The transactions can be recorded only once. The information cannot be altered or mutated, duplicated, deleted, or destroyed. This is the distributed ledger technology of bitcoins.
4. Smart Contracts
A smart contract is a set of rules stored on blockchains and executed automatically to speed up transactions. These contracts define conditions for corporate bond transfers, travel insurance payment terms, and more.
Conclusion
Information is required to run a business. The faster the information is received and with accuracy, the better it is. Blockchain provides information with transparency related to live transactions that can be accessed by one and all. The information provided is immediate and accurate, to the extent that any information that has been hacked can be easily noticed.
Therefore it is self-explanatory why blockchain technology is finding a place of such importance in businesses. Today numerous business domains are using blockchain technology to track orders, payments, accounts, and many other tasks.
Thus, what we understand is that blockchain technology is not just a whim of the young adults but is a serious business that is being considered by the who's who of the corporates as well.
