What is blockchain used for and how does blockchain work
Blockchain decentralized computation and information sharing platform that enables multiple authoritative domains, who do not trust each other, to cooperate, coordinate, and collaborate in a rational decision-making process.
the keyword that we have in this particular definition is this decentralized that is an important aspect of a blockchain, then this computation and information sharing platform,
blockchain broadly you can think of it is a decentralized database that helps in cooperation between multiple authoritative domains.
In this terminology, multiple authoritative domains are the third keyword.
the technology is particularly useful when multiple parties or individuals want to cooperate, and they want to come to a common platform to share the information among themselves.
And another important aspect of blockchain is that whenever we are talking about multiple authoritative domains.
In these multiple authoritative domains, they do not trust each other. So, this is an important aspect of blockchain that you can combine multiple authoritative domains who do not trust each other and they can come to a common platform where they can cooperate, coordinate and collaborate in the application development process at the business intelligence process.
How does blockchain work
Blockchain is a peer-to-peer software technology that protects the integrity of a digital piece of information. it was invented to create the alternative currency Bitcoin, but may be used for other crypto-currencies on-line signature services voting systems, and many other applications.
Everyone uses paper money. When you get a $10 bill you trust that it’s not fake. instead, someone sent you an email saying: here is $10 you probably wouldn’t trust it. But when we transfer money, use an ATM or pay with the deposit card, that’s pretty much exactly what we do. We’re sending money in a digital message.
To make sure no one’s cheating or sending money they don’t have, these “messages” go through a few trusted banks that keep a record of everything. They know how much money everyone has and deduct it properly for every transaction. But this becomes expensive when there’s a million transactions around the world, every minute.
The economist estimates that banks charged us more than $1.7 trillion to process these payments in 2014. That’s about 2 percent of the entire world economy! With Blockchain we can save a lot of this cost because it lets us send money just like sending an email.
Instead of sending a lot of payment information through a few servers, Blockchain uses thousands of personal computers on the Internet.
All transactions are copied and crosschecked between every computer in a systemwide accounting book called The Ledger, which becomes very safe at scale.
Blockchain doesn’t just allow us to create safe money online, it lets us protect any piece of digital information. This could be online identity cards, voter ballots, contracts, and many other legal instruments, bringing bureaucracy into the 21st century.
it’s a distributed database that everyone can get a copy of. Every person with a copy can add new records to this database but cannot change any record once it’s in there.
This property makes a blockchain great to record data transparently because everyone gets to see what’s in it. When Bitcoin launched in 2008 it allowed people to directly transact with one another without having to trust third parties like banks.
Since then over 1600 different cryptocurrencies have been created. But let’s look beyond cryptocurrencies. example Ever heard of odometer fraud?
By tampering with the odometer someone can make a car appear to be newer and less worn out, resulting in customers paying more than what the car is worth.
The government tries to counter this by collecting the mileage of cars when they get a safety inspection but that’s not enough.
So instead we could replace regular odometers with smart ones that are connected to the internet and frequently write the car mileage to a blockchain.
This would create a secure and digital certificate for each car.
And because we use a blockchain, no one can tamper with the data and everyone can look up a vehicle’s history.
This is already being developed byBosch’s IoT lab and they are currently testing it on a fleet of 100 cars in Germany and Switzerland.
So blockchains are great at keeping track of things over time.
So besides odometers, you can also keep track of things like intellectual property or patents or it can even function as a notary.
See, a notary is someone who can confirm and verify signatures on legal documents. But we can just as well use a blockchain for it! The online website stampd.io for instance, allows you to add documents to the Bitcoin or Ethereum blockchain.
Once added, you can always prove that you created a document at a certain point in time much like a notary although right now blockchains aren’t on the same level as notaries from a legal perspective.
How to learn blockchain technology
Best website to learn blockchain technology
IBM | Blockchain By IBM
About: This course is given by IBM wherever you’ll be able to get conversant in the rudiments of Blockchain, its necessities, a way to manufacture elementary Blockchain applications, a way to make certain regarding Blockchain arrangements, comprehend Hyperledger texture, and the way to clarify Hyperledger texture requesting and decentralization
About: This course can provide you with an introduction to Bitcoin and completely different digital kinds of cash.
The course incorporates an introduction to cryptological kinds of cash, however, Bitcoin accomplishes decentralization, mechanics of bitcoin, and the way to store and use Bitcoins, and that is simply the start
This course offers a calculated definition and specialized summation of blockchain innovation and profound learning. During this course, you’ll see a way to utilize Blockchain and also the advancements of profound learning along.
There area unit a handful of essential application territories wherever this innovation is used, for instance, self-ruling driving, medical services, vitality, and fund, which future quickly cared-for additionally
Edureka is a web coaching supplier with the foremost effective learning system within the world. we tend to facilitate professionals to learn trending technologies for career growth
Advance your career with online courses in programming, information science, AI, digital selling, and more. designed with business leaders.
Best youtube channel to learn blockchain technology
- Khan academy
- Nptel blockchain
- Uc Berkeley
The best book to learn ethereum
Mastering Ethereum: Building Smart Contracts and DApps 1st Edition
by Andreas M. Antonopoulos (Author), Gavin Wood Ph. D. (Author)
The best book to learn bitcoin
Mastering Bitcoin: Unlocking Digital Cryptocurrencies 1st Edition
by Andreas M. Antonopoulos (Author)
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