The spark in the technology industry has Blockchain on its cover page. The blockchain is the backbone of the latest internet technology in today's world.
As quoted by Don & Alex Tapscott, the authors of Blockchain Revolution, "The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. "
It was originally devised for the digital currency, Bitcoin, but after testing its functionalities, its areas of use extended further.
Blockchain constitutes the information that is identical across its networks. This information is stored in a database which is shared and made compatible by users all across the globe. It can be publically accessed as it isn't stored in any single location. The information can be made divulged and has a wide range of uses.
The database containing the information is not centralized and is a well-secured network making it inconceivable for the hackers to corrupt the data of the database.
The most common way to spread the information was to send that information to the person via email. That particular information was then only made accessed to the one receiving it and thus any changes required in that particular sheet was just to be made by the one having that note and not by any other person. This was the major disadvantage as the data wasn't editable by two persons at the same time. The databases used in the bank work on this principle, with the maintenance of balance and money transfer. While making a transfer the banks lock the access for the other person for a short period of time and then after the task is completed, the make it accessible again.
If a legal document is made to be passed to several people than the normal or traditional procedure is to pass it via chain method. The chain is considered to be an official way to make access to the data. But, what if this data is made public and the people instead of following the long-term chain procedure could easily be accessing it at the same time. This would decrease the workflow conundrum, the data won't be lost or misplaced, and the work would be much easier to perform.
INDESTRUCTIBILITY OF BLOCKCHAIN
Blockchain technology is the new era of internet technologies. It is believed to be the most efficient technology that is soon to replace the existing technologies and would be taken into practice all over the world. Due to its robustness and durability, it has become highly efficacious in the fields of technology. The blockchain cannot be controlled by a single entity and has no point of failure. The only problems that were caused were due to hacking or mismanagement that was intentional and not the flaws of this technology.
The data stored in blockchain is incorruptible. The major advantage is that it checks the data within itself every few minutes and works as a self-auditing network. It reconciles every transaction that happens in ten minutes interval. Thus the data is remained transparent to all and cannot be corrupted as it would require a huge amount of computing power to override the entire network.
The blockchain works on the network of nodes. Every node serves as an administrator, and thus joins the network voluntarily.
The blockchain is a secured network of nodes that allows the data from the database to be accessed publically. It is not centralized thereby making it impossible to be hacked. It is devised in a way that is well secured and the data cannot be corrupted very easily.
CAN BLOCKCHAIN TRANSFORM THE INDIAN ECONOMY?
The answer to this question is YES, it can transform the Indian economy. It can help any country in different economic aspects. It is termed as the coolest thing in the Indian finance right now. Blockchain technology is mostly being used in virtual currency transactions. Blockchain technology is the best available way to ensure transactions happen securely in a completely anti-fraudulent manner. It is because no block can be altered and the transaction trail can be not erased. The financial services find this invention very convenient and reliable to work with.
The Reserve Bank of India has too successfully tested the bitcoins inheriting the blockchain technology for trade application. It is considered to be very beneficial to almost every field that involves record keeping. This technology is being adopted widely in stock exchange and trade platforms.
The Reserve Bank's blockchain research follows a recent partnership between one of the Indian banking majors, ICICI Bank and Stellar. ICICI bank has planned to develop a Stellar based blockchain applications for transactions within closed groups.
Axis bank and Yes bank have adopted the blockchain technology to business. According to sources, Axis bank in partnership with Ripple is set to offer cross-border payment services over the distributed ledger.
With huge volumes of data getting generated every day owing to the digitization of records, it becomes important for every organization to effectively manage the security threats and achieve significant cost efficiencies.
The most common features that a financial company looks forward to are:
1. Quicker transactions for good customer services.
2. Transparency to the customers.
7. Ensuring the cost-efficiency.
These features come packed into the blockchain package. The Financial Services industry is witnessing an increasing number of Blockchain-based use cases that yield the potential to drive operational efficiencies and improve customer experience.
It has been tested at various areas to check its practical application. The recent tests include, a private sector bank in India and a leading banking group in Middle-East successfully executed transactions in International trade finance, a leading stock market in India experimented with the blockchain t reduce the cycle time of the Bill Discounting process for paying its suppliers, further two of the private sector banks in India are jointly testing Blockchain transactions focused mostly on cross-border remittance and trade settlements.
Security has always been an issue with the internet. One cannot just rely on the username and password system to protect your identity and assets online. Blockchain comes to play to make this network a secured one. Its security methods use encryption technology. By storing data across its network, the blockchain eliminates the risks that come with data being held centrally. It works on two keys, the public keys, and the private keys. The public key is a user address on the blockchain and the private key is like a password that gives its owner access to their bitcoin or other digital assets.