Recently there has been a lot of buzz around cryptocurrencies and because of cryptocurrencies like bitcoin, blockchain technology has come to limelight. The blockchain is a digital public ledger that maintains all the e-transaction history while adding new transactions. The best feature of blockchain is that it prevents data from getting tampered. It is maintained by data miners who add new transactions into this ledger. The blockchain is constantly getting bigger as miners are adding new blocks to it in every 8 to 10 minutes. Blockchain technology not only benefits cryptocurrencies but is being used in various domains like logistics, banking and finance, real estate, elections & surveys and many more.
Adding various blocks to form a chain is the basic working environment of the blockchain. Blocks contain the data related to the transaction that was made. Every time a new transaction is performed, simultaneously a new block is formed that is added in the blockchain in a linear and sequential order. Whenever any new transaction is performed, miner reacts to them by converting the data into unique codes and thereof forming a block. Before adding this block to the blockchain, miners need to create a signature for that block. This signature is formed by solving a complex mathematical problem and each block of the transaction consists of a unique signature. These complex mathematical problems are solved using a lot of computational power. Blockchain acts as a diary where every transaction is maintained since its birth.
The basic functioning of blockchain is adopted from Hash tree/Markel Tree. Markel tree is an algorithm that was created by Ralph Merkle in the year 1979. Hash tree verifies the data between computer systems. It is because of this algorithm that the data is prevented from being tampered during the process of transfer. Later, the hash tree was used by Satoshi Nakamoto (cloud be an individual or a group of people) who created a distributed blockchain technology where each block generates a secure cryptographic hashing that can only be decoded by verifying and handling data across various computer system. This distributed and decentralized blockchain technology has today become a core part of Bitcoin and other cryptocurrencies.
Mentioned below are some of the advantages of Blockchain Technology:
- Security: Every individual who enters the blockchain network is provided with a unique identity that maintains anonymity. Even the blocks that are encrypted and require high computational power to decrypt are prevented by hackers. The algorithm is so efficient that any transaction ones added cannot be altered. Reduces risks related to cybercrimes, frauds, and tampering.
- Trackable: The blockchain technology is based on a hash tree that allows the user to access only their transaction history. It even allows blockchain to locate any problem and correct them.
- Faster processing: Lots of miners and high computational power allows the digital transaction process in a faster and smoother way.
- Prevention of Data Duplication: Since the miners create a unique hash for every transaction, data duplication is prevented.
There are various limitations to this technology. Let’s have a look at some of the disadvantages of blockchain technology:
- Since there is a lot of computational power being used to decrypt a single code, therefore multiple codes would need a high amount of power. Keeping a real-time ledger consumes a lot of power and therefore, blockchain technology requires high electrical power.
- Since blockchain follows decentralized systems, various financial institutions are creating problems for Bitcoin to get accepted.
With the advancement in technology companies are expecting their employees to have a thorough knowledge of Blockchain Technology. Mentioned below are some reasons to learn blockchain technology:
- Today few people are aware of blockchain technology. But as we are living in the digital era, there are great chances for this technology to spread like a wildfire. It is only sensible to learn this technology today to avail its benefit tomorrow.
- As mentioned earlier that blockchain is not only limited to cryptocurrencies. Today this technology is at its peak and various sectors are waiting to make full use of this technology. In no time companies will be hiring candidates with the knowledge about blockchain technology at a very good package.
- More than for career up gradation, learning blockchain is beneficial for personal use. Today digital currencies are booming everywhere. Having a thorough knowledge about the core technology on which these cryptocurrencies are dependent will definitely help in making lots of money.
- Blockchain technology maintains data integrity and data security throughout the transaction. It becomes important for candidates to understand the security pattern of this technology for personal and professional benefits.
Today there are various companies providing training in this latest and most useful technology and among all, KVCH is the Best Blockchain training institute in Noida. Here the candidates get the opportunity to work on real-time industry projects to get a clearer perspective about the technology. The training is provided by the experienced industry trainers. In the end, candidates are awarded a globally recognized certificate.