Blockchain is a concept of maintaining the database in digitalized form shared among numerous nodes of computers. First time the concept of blockchain was conceived by Stuart Haber and W. Scott Stornetta in 1991. The purpose of this invention was to implement a system where records of the documents can be kept safe and document time stamps could not be interfered. Currently, Coinbase Global Inc. (COIN) is the biggest blockchain company formed by brain armstrong.

All the information on this digi platform is saved in electronic form which cannot be changed, cheated and stolen by anyone. This system is used for digital currencies like bitcoin, crypto currencies, decentralized finance applications (DeFi), non-fungible tokens (NFTs) and smart contracts etc. According, to the data of 2022 there are more than 10000 active users of crypto currencies on blockchain.

How does it works?

In blockchain huge databases are stored in decentralized manner in number of computers which cannot be deleted, altered and destroyed. It act as a smart ledger in which stored data is saved in blocks once the block is full than it start maintaining the data in next block so, in this way, each block is chained with another block. Each block has its own “hash” which is encrypted and created by mathematical function that turns digitalized information into string of numbers and letters. These encrypted strings keeps it highly secured. If anybody wants to make change in data or in any transaction than hacker has to make change in number of nodes otherwise by making change in one block shows the difference in other blocks and if the changes are made in all blocks than it will lead to change in hash of block. Therefore, change and stealing of so much highly secured data is not possible.

Benefits of Blockchain Technology

• It provides high level of security of stored data.
• All the data is recoded in electronic form only.
• Services of blockchain is 24*7.
• There is a transparency of data.
• Decentralized system remove the factor of interference.
• It act as an alternative for bank system in which personal information of users are secured.
• Records cannot be deleted, destroyed and altered.
• It leads to cost reduction by eliminating the involvement of third party.
• It provided the improved accuracy by removing the tamper of human verification.
• As, compared to banks it takes hardly 15 minutes for transaction.
• It also act as a smart ledger.
• Every block has its own hash which always keep it safe.

Demerits of Blockchain Technology

• It requires good amount for settling the system.
• Only knowledgeable professionals can use blockchain technology.
• There is significant technology associated with high cost variable.