Blockchain: The technology of the decade

Posted on Posted in Technology

In 1970s mainframes created sensation by automation, 1980s personal computers elevated our interaction experience with machines, 1990s the internet created history by connecting us worldwide, 2000s was the era of mobile and apps, and now in this decade Blockchain is the transformer.

Blockchain is an innovation in cryptography. So far if I was to share a document to you on email. I would share a copy, not the original one. This means that you and I both will have a copy of the document. However, with money this should not happen. If I give $100 to you then I must not hold that money. To solve this issue in online transaction we trust a third party like bank or paypal. We must have an account with the third party where third party will deduct numbers from my account and credit it to your account. This third party has been so far, an organization (private or public). The books of organization are never public and organization can use your information for its own unknown purposes. Also, organization always prone to attacks have to keep highest possible security. But keeping highest possible security is a challenge for organization because it can give job to only a limited number of individuals.

Blockchain solves some of these issues. Blockchain is a kind of open source ledger based on cryptography. So, if I have to send anything to you which can be digitalized, for example, $100 using blockchain. I’ll need a portal where I can see all my digital assets, I’ll need your public key to which I can link the (send to) my asset, and to authorize my transaction I’ll need a private key. Once I send $100 to you, you will get message and using your private key you can authorize the transaction to accept the $100. I still need the portal provider but they do not have my private key, that means only and only I can see all my assets. This increase privacy. At backend, my transaction will become part of a block. Various “miners” (individual or group anywhere in the world with high computing power, good in coding and having powerful computers) solve the puzzle to add the block to previous chain of blocks. One miner who solve the puzzle first will get some commission from our transaction after rest of the miners approve the block. All this happens pretty fast. So, if a bad intentioned hacker has to interfere my transaction with you or with my assets then she would need to hack systems of all the miners in the world and change all the earlier blocks and solve the newly created discrepancy due to that and all this before the winning miner solves the first puzzle. Quite difficult to do as compared to hack system of one organization having few hundred highly skilled computer engineers. So, this increases security of transaction.

You’ll see blockchain application more and more in coming times. For now, you might have heard of notorious crypto-currency “Bitcoin”. It is based on blockchain concept.

Let me know your views and experiences about Blockchain.

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