What is Blockchain technology, just as the Internet was invented by connecting hundreds of millions of computers, in the same way, a chain was invented by connecting long chains of data blocks (data) called Blockchain? Which is named Blockchain.
Blockchain technology is an amalgamation of three different technologies, which include the Internet, the cryptography of private keys, that is, keeping information secret, and controlling protocols.
Blockchain is a technology that handles bitcoin and other crypto-currencies. In simple words, it is a digital public ledger, in which every transaction is recorded.
READ IN HINDI: Blockchain Technology in Hindi
Blockchain Technology Reference & Background
Blockchain is considered a revolutionary technology for the economy of the future, but not much is known about the origin of this technology.
It is believed that after the invention of bitcoin in 2008, this blockchain technology was discovered to support this crypto-currency.
It is a modern technology without which it is impossible to transact with bitcoin or any other type of crypto-currency.
Blockchain Technology and Bitcoin
Both blockchain technology and bitcoin are completely different. Blockchain is a technology, a platform where not only a digital currency but anything can be held and recorded digitally.
That is, blockchain is a digital ledger. Whereas, bitcoin is a digital medium through which we and you can buy and sell certain things.
However, it is wrong to call it currency as it has no value in the real world. It is available online only. Blockchain technology can make a big difference in the banking sector.
The banking sector usually deals with various things like identity theft, cost efficiencies. It can be secure and low-cost by using blockchain technology.
How Does Blockchain Technology Work?
Blockchain is believed to have the potential to revolutionize the functioning of all industries. It can make the process more democratic, secure, transparent, and efficient.
Blockchain is a technology that creates a decentralized database of transactions on a secure and easily accessible network.
This shared record of transactions in this virtual ledger can be viewed by anyone using the blockchain located on the network.
Blockchain is a series of data blocks (statistics) in which each block contains a set of transactions.
These blocks are electronically linked to each other and protected through encryption.
This technology is secure and difficult to hack. That is why this technology is being considered safe to prevent cybercrime and hacking.
Under this, the details of each transaction are entered in the ledger after being verified by a series of computers, (nodes) connected to the network.
Key Features Of Blockchain Technology
Decentralization and transparency are the most important systems of blockchain technology, due to which it is proving to be increasingly popular and effective.
Blockchain is a technology designed as a program to record financial transactions.
It is a digital system, which incorporates Internet technology with great reliability.
It can store blocks of similar information on its network.
Blockchain has the capability of distributed database i.e. it acts like a distributed network.
Not all records in a database are stored in a single computer but are distributed across thousands of millions of computers.
Each computer in the blockchain can describe the entire history of every single record. This database is encrypted.
In a blockchain system, even if a computer malfunction occurs, the system continues to function.
It requires the approval of multiple computers whenever new records are to be entered into it.
Blockchain can be easily controlled by a group of users who have permission to add information and can also modify records of the same information.
In this technique, the role of middlemen like banks, etc. is eliminated and person-to-person (P-to-P) direct contact is established.
This not only reduces the time taken for the transaction but also greatly reduces the chances of making a mistake.
Where Can Blockchain Technology Be Used
In addition to cryptocurrencies, blockchain technology can be used in the following areas:
- Information Technology and Data Management
- Government Schemes Accounts
- subsidy distribution
- health statistics
- Cyber security
- cloud storage
- e-governance
- smart contract
- academic information
- e-voting
- keeping legal papers
- Banking and Insurance
- in land records regulation
- Digital identity and authentication
Blockchain Technology In India
Of course, bitcoin is just one application of this technology, the use of which is being investigated in many industries.
There is a lot of attraction in the banking and insurance sector of India. In fact, many people in these areas are forming associations to make the world aware of the benefits of blockchain technology at the industry level.
Keeping pace with the global world, some Indian companies have started offering financial services through blockchain technology. With the help of this technology, Bajaj Group’s NBFCs and insurance company Bajaj Finserv are settling claims before filing travel insurance in travel insurance.
The company is using blockchain technology to improve customer service. This technique is closely monitored. Bajaj Electrical Limited is also using blockchain technology to eliminate human intervention in the bill discounting process.
There is a consortium called ‘BanChain’ in India, in which about 27 banks from India (including State Bank of India and ICICI) and the Middle East are members.
The association is spreading the benefits of blockchain technology to make businesses safer and faster.
In addition, the ‘Institute for Development and Research in Banking Technology’, a branch of the Reserve Bank of India, is developing a modern platform for blockchain technology.
It has been launched in India as a pilot project in Telangana and Andhra Pradesh, where it can be used as a secure store of data.
Security concerns are also attached
The combination of the internet and digital technology has completely changed the way transactions and information are exchanged. Blockchain technology is playing an important role in this.
This has given rise to many kinds of apprehensions and questions, such as – when was the digital payment or information transaction done?…how did it happen?…to whom did it happen?…even if it happened or not?
Apart from this, the question of checking the security of the transfer, the validity of the transfer is no less big.
Blockchain technology is not used in the matter of protecting personal information and also where there is a risk of information or information being leaked.
The speed of digital transactions in India is much lower than in developed countries, but cases of fraud are almost daily.
Hacking of debit/credit cards and bank accounts also happens and there is no strong legal system in the country to prevent it.
Incidents of citizen information theft, cyber harassment, fraudulent payments, illegal transactions, and industrial espionage also occur in India.
From this perspective, blockchain technology will not be beneficial unless a strong technical resistance system is created for it.
There is no clear policy, nor a clear regulatory framework regarding blockchain in India.
Finance Minister Arun Jaitley in his budget speech this year has called for setting up a committee to look into blockchain technology.
It is expected that blockchain technology will improve the efficiency of all types of transactions by eliminating middlemen and this will also reduce the cost of all transactions. At the same time, it will also increase transparency and get rid of fake transactions, as every transaction will be recorded and allocated in the public ledger.
Today, in the areas of cyber security, banking, and insurance, there are concerns on a global scale, and in such a situation, there is increasing acceptance of the use of blockchain technology to make them secure. Experts believe that blockchain can be a gamechanger in the current context, provided its importance and capabilities are recognized in time.
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