Blockchain is a secure, shared, distributed ledger comprised of unchangeable, digitally recorded data in packages called blocks.
Traditionally ledgers are centralized and they use a 3rd party or a middleman to record all the transactions done. But Blockchain helps to make the system De-Centralized by distributing the ledgers safely across the entire network. Below you can find the definitions explaining the basics of Blockchain.
There are advantages over the De-Centralized process:
- Helps in eliminating the middleman which help the organization to recreate new Business Models.
- Helps in reducing the Fraud as there is no people in the middle and is impossible to change the historical record.
- Helps in increasing the efficiency by simplifying the transaction.
- Helps in increasing the revenue by eliminating the middleman, paperwork and save a lot of time and money.
Removal of the centralized system is risky, Blockchain replaces the Central Authority with CRYPTOGRAPHY (Security), means we need an electronic system based on the cryptography proof, and it allows the sender and receiver to transact direct without any intervention of the middleman.
- All the digital assets are protected via digital signatures and hashes
- Digital Signature and hashes are created by cryptography one-way hash function (This is mathematical function which has a unique output which comes from a specific input where there is no chance of deriving the input based on the output)
- Digital signatures and hashes makes Block chains more secure while being distributed.
Blockchain also creates the transaction chain that maintains the history of an ownership of an asset. Blockchain 1.0 was focused on transacting payments. Blockchain 2.0 expands the power of ledger to have additional code through smart contracts also has multiple /linked block chains and can also craft Blockchain solutions around business needs based on user choice of being private or public.
Smart contracts are contract that contains code and execute various terms inside the contract. These contract are based on agreed upon conditions like the normal contracts. They are store in Blockchain 2.0 â€˜distributed ledger
Blockchain Business Potential – In BSFI segment are the main five developments Smart Contracts, Smart Assets, Clearing and Settlement, Payments, Digital Identity. In Media industry we can help to find solutions to business problems like Ticket purchases, Real time auctions, Game monetization etc. For IOT the main used cases are on Connected Vehicles, Smart Appliances, and Supply Chain Sensors etc. For Government and public Sectors we can have the Blockchain solutions for Vehicle registration, Licensing and Identification, copyrights etc. On the Medical segments we can have the Block Chain solutions for Record Sharing, Compliance, Personalized medicine, Prescription Sharing