- what is block chain Technology
Block chain technology
In recent times, Bitcoins and Cryptocurrency have become very popular. However the questions have been arises, how trustworthy is the transaction through Bitcoins and other Cryptocurrency. Besides these questions they have shown a great pace of demand among people of various countries. The technology used in Bitcoins and Cryptocurrency is ‘block chain technology’. It is considered as a revolutionary invention of modern times.
What is block chain technology
Block chain are virtual ledgers, that connect all the information of transaction from first to the very last one thereby creating a chain of blocks of information. It is a network of computers that all have the same history of transactions. Every ten minutes of transaction become one block. This information is held by multiple people at different levels which makes it a decentralised database. Each transaction is validated by each of the individual on the network.
History of block chain
First work on chain of blocks was done in 1991 by Stuart Haber and Scott Stornetta. In the following year in 1992, Bayer, Haber and Stornetta improved the efficiency of technology and made it more reliable. First block chain conceptualised by person or group of persons named Satoshi Nakamotto as a component of Bitcoins. Then in 2016, Russia announced a pilot project based on this technology for the automated voting system. Like this other private players also invested huge amount in the development of block chains technology.
How does it works
There is an interface like an App or computer for a user to use but instead of a company there are a bunch of software helping the user to make the transaction. This technology uses cryptography that help to records all transactions history in form of blocks and prepare virtual ledgers.
It has changed the historical finance sector of the world where all transactions were used to happen manually. Now it has replaced those banks and intermediaries which were used to involve in the transaction. This step has make transactions cheaper and faster . Now people can connect peer to peer directly.
Uses and probabilities
Information in the blocks can’t be altered by any users which makes it more secure and transparent. So confidential communication of Cryptocurrency is the key feature of it. Safe, cost effective and faster bank transaction can be possible by the use of this chain technology. Apart from financial sectors it has wide use in other sectors as well such as in the health sector for maintaining health records and insurances, in cloud storage, digital identification, smart communication and digital voting.
GOI is also very keen to explore the various possibilities of this new emerging technology. Government has planned to establish a centre at Gurugram for the research program on this high end technology. NITI Aayog has also said , it can be helpful in the context of Agricultural sector, education sector and many more. Various other companies have already started to use this chains of block technology in their respective work fields.
This is true block chain technology has a lot to offer but its drawbacks also need to be kept in mind. For instance when it comes to personal information that is available publicly, block chain use is not advisable. This can lead to an increase in fraud cases.
But the government has tried to show the activism and stipulated some laws and also reformed some older one like now electronic fraud comes under IPC act 420. IT law 2000 has been amended and electronic transactions got validations in that particular law. By this various other laws such as RBI act 1934, had also been amended. This is a good thing done by the government and it is also helpful for the better development of this new technology.