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If you have
heard of Bitcoin (which you probably have), you must have also heard of
Blockchain Technology. Many people are calling this revolutionary and many top
institutions are already employing this technology. But what it really is?
Blockchain is a
digital decentralized public ledger where transactions are recorded. The
individual transactions – also called blocks – are recorded and added to the
ledger in chronological order. There isn’t any central institute that handles
the bookkeeping. It is completely independent.
The block or
recent transactions are recorded through cryptography. And once it is recorded,
it goes to the blockchain as a permanent database, which can never be altered.
Each block usually contains a cryptographic hash pointer as a link to previous
block. It’s actually what its name says, a chain of blocks.
This whole
database – that is continuously growing – is created by a technology known as
blockchain technology.
The main reason
why blockchain technology came into existence and became so popular is because
of the transparency and meddle-proofing in recording transactions it brings.
Also, transactions recorded on digital ledger are much cheaper and quicker.
This is the biggest reason why many tech companies and organizations in
financial sector are taking up this sector.
India’s largest bank SBI (State Bank of India) has already announced that it soon will be using blockchain for smart contracts and KYC. Expect more joining this bandwagon as this technology matures
