Blockchain Technology simply means a ledger consisting of digital assets and transactions. It is used in businesses to gather any information in a more accurate and faster way, a blockchain network can keep a record of all kinds of payments, accounts, databases and much more and therefore, it is used in most industries nowadays.
Blockchain is a popular term nowadays, it is all over the internet. So, what is it exactly? Let’s dive in. Blockchain is a chain of blocks, each block containing information/data. Blockchain is a distributed ledger that is completely open to anyone. A block in the blockchain consists of data, hash and the hash of the previous block. The data in the block depends on the type of blockchain.
If we take the example of the most popular form of blockchain data, the bitcoin, a block will include the details of the transaction such as the number of coins, the sender and the receiver. The hash is similar to a fingerprint. Once the block is created, the hash is also created along with it and any change with the data in the block will affect the hash as well.
How Does Blockchain Technology Work?
Data in a block = Data + hash + hash of the previous block
If any of the blocks in a blockchain is disturbed, it affects the data in the entire chain. For example, if the second block is removed, then the third block will have its data, its hash value, and the first block’s hash value. But if the second block had not been taken away, the third block will have the second block’s hash value.
Even though there is a facility to recalculate the hash values of all blocks and tamper with data, the blockchain fixes this problem also with proof-of-work. This is a mechanism that slows down the process of the creation of a new block. This is exactly the reason why blockchains are secure. For example, in the case of bitcoins, it takes ten minutes to calculate the proof-of-work. So, if you tamper with one block, you will need to calculate the proof-of-work for all the blocks that follow. This makes it difficult to tamper with the data stored in blocks, making blockchain secure and beneficial to the industries.
So, the security feature of the blockchains comes from the proof-of-work and the chain of blocks feature. But there is one more feature about the blockchains that add to their security levels. The blockchain uses a distributed network rather than a central network to manage the chain. It uses a peer-to-peer network where everyone is allowed to join. Everyone who joins the network gets a full copy of the blockchain. If someone wants to create a new block, the new block is sent to everyone on the network and each node verifies the block to ensure that it has not been tampered with. If the checks go well with all the nodes, the new block is added to the blockchain.
Benefits of Blockchain Technology
How can a blockchain help your business? This is a question that is bugging many industries at the moment. Many top companies including Starbucks, Microsoft, etc. have teamed up to form a digital asset platform. The exact reason why all the top companies are getting into blockchain is simply because of the main speciality of blockchain i.e., security. All organizations design their working environment. But when we need to work with other organizations, we need to coordinate. The coordination is a nightmare as no one wants to trust their competitors with their data. Bitcoin has proven the security level of blockchain by enabling people to send, receive and verify transactions.
You can use blockchain to prove exactly what information existed at a point in time. This has a variety of applications in places where data is involved and auditing or proof is required. As each of the blocks has information that is relative to the content in the previous block, it is difficult to get access to this information. The design that makes the hash to be changed with a change in the data of a single block makes hacking or getting the data by illegal means next to impossible.
Scope & Career
Blockchain developers are anyone who knows the blockchain. The roles in blockchain projects are very similar to the roles in IT projects. The only difference is that you will be dealing with blockchain projects rather than IT operations. Every blockchain project will have an architect who is responsible for designing the blockchain networks. Bitcoin, Ethereum, Ripple, etc. are blockchain protocols, then the architect is the one who is going to build any of these protocols. The next on the list is the blockchain engineer. This person is responsible for designing blockchain solutions. The blockchain engineer is responsible for building the high-level architecture.
Blockchain developer is the next in line, the blockchain developer is responsible for building the applications. He is guided by the blockchain engineer to build specific functions specific to the applications.
Blockchain designer is the other opportunity provided by this entity to the website designers. Blockchain designers are responsible for designing, implementing and supporting blockchain websites. You might ask what is the difference between a website designer and a blockchain website designer. The difference lies in the backend. The designer should be aware of the functionality of the blockchain to prevent security issues.
Information Security Analyst, the person responsible for researching and planning the network security measures. Any breach in the network will result in huge losses both in the form of reputation and money. A blockchain project without enough security levels is not safe and has a high chance of going into loss. This makes it mandatory for any blockchain project to have an information security analyst.
Blockchain Project Manager is the person who is responsible for organizing and managing multiple blockchain projects. Blockchain Quality Engineer, this person is responsible to take care of the quality control and the network upgrades and updates.
Blockchain Legal Consultant is one of the main people you need to have if you are going for an ICO. The Legal consultant is responsible for reviewing the legal aspects of ICO, preparing documents, and meeting the legal regulations before the ICO launch.
Future of Blockchain Technology:
With Bitcoin and many other cryptocurrencies growing in popularity in recent times, there will be an exploration of this technology for the greater good. It will be seen as an innovation tackling the menace of security concerns. With the virtual peer-to-peer interface, cross-border payments will become transparent and efficient. What is required more is efficient management as well as legal infrastructure backing this futuristic technology to overcome major errors or loopholes.