One of the Biggest changes that internet made to our society was elimination of intermediaries . The influence of intermittent came down from marriage proposal to shopping . Everything started to become transparent . The world today relies heavily on Internet . But when the corporate intermediaries increased the power and put the people under control , we often forgot that they were middlemen.
We all know that the financial transaction was actually started by the barter system . And the Technology called Block Chain , at present capable of making a revolution in the sectors like banking , education , insurance , public health and even it can redraw the government .
I know that there are many people who still have not heard about bitcoins . And everyone may think that the concept is something complex . When the block chain technology was used for making financial transactions , it made the formation of bitcoin.
Now I will explain about the Block Chain.
WHAT IS BLOCK CHAIN ?
From a cruising altitude, a blockchain might not look that different from things you’re familiar with, say Wikipedia.
With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.
Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Wide Web (WWW) using a client-server network model.
A user (client) with permissions associated with its account is able to change Wikipedia entries stored on a centralized server.
Whenever a user accesses the Wikipedia page, they will get the updated version of the ‘master copy’ of the Wikipedia entry. Control of the database remains with Wikipedia administrators allowing for access and permissions to be maintained by a central authority.
Wikipedia’s digital backbone is similar to the highly protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.
The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and important feature of blockchain technology.
Wikipedia’s ‘master copy’ is edited on a server and all users see the new version. In the case of a blockchain, every node in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.
Transactions are broadcast, and every node is creating their own updated version of events.
It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.
Yet, blockchain technology, for all its merits, is not a new technology.
Rather, it is a combination of proven technologies applied in a new way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.
The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, simple, yet robust network architecture of blockchain technology itself.
Defining digital trust
Trust is a risk judgement between different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).
Put more simply, we want to know, ‘Are you who you say you are?’ and ‘Should you be able to do what you are trying to do?’
In the case of blockchain technology, private key cryptography provides a powerful ownership tool that fulfills authentication requirements. Possession of a private key is ownership. It also spares a person from having to share more personal information than they would need to for an exchange, leaving them exposed to hackers.
Authentication is not enough. Authorization – having enough money, broadcasting the correct transaction type, etc – needs a distributed, peer-to-peer network as a starting point. A distributed network reduces the risk of centralized corruption or failure.
This distributed network must also be committed to the transaction network’s recordkeeping and security. Authorizing transactions is a result of the entire network applying the rules upon which it was designed (the blockchain’s protocol).
Authentication and authorization supplied in this way allow for interactions in the digital world without relying on (expensive) trust. Today, entrepreneurs in industries around the world have woken up to the implications of this development – unimagined, new and powerful digital relationshionships are possible. Blockchain technology is often described as the backbone for a transaction layer for the Internet, the foundation of the Internet of Value.
In fact, the idea that cryptographic keys and shared ledgers can incentivize users to secure and formalize digital relationships has imaginations running wild. Everyone from governments to IT firms to banks is seeking to build this transaction layer.
Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.
The idea can be applied to any need for a trustworthy system of record.
Today there are thousand of crypto currencies which are more stronger and secure than bitcoins. The transformation of financial institutions from being the middlemen who handles the wealth of people to the act of being the real owners of people’s wealth is questionable Banning this technology and bitcoins is really trying to suppress the system, but in reality the system is getting stronger.
The truth is present banking system will be upgraded to this technology soon . I think there is no difference that hospitals , universities acting like the financial institutions who’s actually the middle men . The truth is that people started questioning things what’s happening around . The decisions made by officials within the four walls won’t really work in the future . Everything is going to be more transparent.
What blockchain technology doing to the financial sectors will be reflected back to its allied sectors . People who raised concerns about computers and had the opinion to ban them , is now trying to working with the system . So there is no doubt that blockchain technology will make an impact in all sectors .
source :- wikipedia , techradar