Blockchain, attracts world-leading companies and governments
Blockchain is the backbone technology on which bitcoins run. Simply put, it is a digital public ledger that records every transaction.
What is Blockchain?
Blockchain is a record of transactions — a transparent and tamper-proof digital ledger — that allows users to share information quickly, freely and without fear that it could be altered without user detection.
Blockchain is being used by leading companies, such as Wal-Mart and IBM.
How it works?
- Once a transaction is entered in the blockchain, it cannot be erased or modified. Blockchain removes the need for using a trusted third party such as a bank to make a transaction by directly connecting the customers and suppliers.
- Each transaction is recorded to the ledger after verification by the network participants, mainly a chain of computers, called nodes.
- Blockchain today may be compared to what the Internet was in the early 1990s.
Where did it originate?
While the origin of the technology is not clear, it is widely believed that a person or group of people by the pseudonym Satoshi Nakamoto, who invented bitcoins, released the technology to support cryptocurrency.
What are the use cases?
It is witnessing a lot of traction within India, in sectors such as banking and insurance.
The Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India (RBI), is developing a model platform for this technology.
What are the benefits?
- However, according to a Deloitte and Assocham report on the issue, blockchain becomes a good fit when there is a lot of data that is shared across multiple parties with no trust mechanism among the participants.
- It allows people to exchange value without knowing the identity of each other necessarily, in a secure way on the back end.
- Governments are also launching blockchain initiatives to figure out ways to leverage the technology.
What is happening in India?
A high-level committee is currently deliberating on the issue whether or not cryptocurrencies should be banned in India.