The name blockchain came about due to the fact that

About a decade ago, blockchain started rising to the top as one of the most innovative technological trends going around the globe. The technology became revolutionary due to a man named Satoshi Nakamoto, when he solidified this idea in order to establish an electronic currency, known as bitcoin. 

Even though it was originally used for bitcoin, people realized that the digital ledger can be used for more than just cryptocurrencies. The value placed in blockchain eventually increased due to the recognition that it can be used for many other causes.

How It Works

(Source: Blockgeeks)

What is Blockchain: An Introduction

Blockchain got its name from--well--the fact that it’s a chain of blocks. It is a decentralized, digital and public ledger that holds all transactional data. To break it down, imagine blockchain as a Google sheet. Then imagine that Google sheet is being duplicated across everyone’s computers. And in blockchain, the computers would be called nodes, which are connected with each other through the same network. 

This means that the system is decentralized, where there is no single organization that controls everything occurring in the digital ledger. The peer-to-peer (P2P) system that is established in blockchain makes the system stable and secure. Everyone has access to the ledger, making it transparent and public.

Within the Google sheet, there is information that is being duplicated across all the nodes, which would mean that every computer holds the same data. Each individual has the same copy of the same data being inputted into the system, and the data comes from each transaction or action that a person makes. 

Every time a transaction or action is made in the blockchain, another block is being added into the network. However, it quickly renders until it is officially recorded in. The information provided in each transaction may contain the time the transaction was made, who received it, who sent it, and how much was transferred (if we’re talking about finances).

What Are the Advantages of Blockchain?

Security

It would be nearly impossible for people to tamper with the records because then they would have to manipulate every single record on each person’s computer. Each node has a type of unique code called a hash that can help disable people from bypassing and contains encrypted previous information of all the blocks before it. The P2P network ensures that anyone’s transactional data is safely stored.

However - Breaches happen. Blockchain can also be hacked!

Direct Contact

Due to its decentralized nature, blockchain enables individuals to directly interact with each other in the network without the use of arbitrators. Generally, third-party intermediaries require certain fees for their services, such as how banks charge a fee towards customers who want to cash in a check.

Use Cases

Blockchain has viable use cases across a diverse range of markets. Aside from obvious applications in the financial and banking industries, the technology can improve processes in travel, insurance, energy, food, and more. With rampant food fraud across the globe, blockchain can help standardize the food supply chain and offer valuable insights on production, tracking, and sales. Its value behind security also makes blockchain essential in the travel industry; airlines can prevent breaches in booking and scheduling systems to protect personal and financial information. Smart contracts and blockchain even presents a valuable opportunity for the entire insurance industry, where underwriting and claims processes can be simplified through efficient automation and succinct data reserves.

Transparency

Everyone can see the data contained in the system. Because everyone shares the same document, everyone has the ability to oversee all transaction data and see new information being inputted in. This makes the network stable and accurate. 

Blockchain is changing the world as we know it, but true innovation comes in many shapes. 

At Plug and Play, we are an accelerator that boosts the best fintech startups in partnership with some of the largest corporations. Join our platform today.

Blockchain defined

Blockchain is defined as a ledger of decentralized data that is securely shared. Blockchain technology enables a collective group of select participants to share data. With blockchain cloud services, transactional data from multiple sources can be easily collected, integrated, and shared. Data is broken up into shared blocks that are chained together with unique identifiers in the form of cryptographic hashes.

Blockchain provides data integrity with a single source of truth, eliminating data duplication and increasing security.

In a blockchain system, fraud and data tampering are prevented because data can’t be altered without the permission of a quorum of the parties. A blockchain ledger can be shared, but not altered. If someone tries to alter data, all participants will be alerted and will know who make the attempt.

How does blockchain technology work?

Think of a blockchain as a historical record of transactions. Each block is “chained” to the previous block in a sequence, and is immutably recorded across a peer-to-peer network. Cryptographic trust and assurance technology applies a unique identifier—or digital fingerprint—to each transaction.

Trust, accountability, transparency, and security are forged into the chain. This enables many types of organizations and trading partners to access and share data, a phenomenon known as third-party, consensus-based trust.

All participants maintain an encrypted record of every transaction within a decentralized, highly scalable, and resilient recording mechanism that cannot be repudiated. Blockchain does not require any additional overhead or intermediaries. Having a decentralized, single source of truth reduces the cost of executing trusted business interactions among parties that may not fully trust each other. In a permissioned blockchain, used by most enterprises, participants are authorized to participate in the network, and each participant maintains an encrypted record of every transaction.

Any company or group of companies that needs a secure, real-time, shareable record of transactions can benefit from this unique technology. There is no single location where everything is stored, leading to better security and availability, with no central point of vulnerability.

To learn more about blockchain, its underlying technology, and use cases, here are some important definitions.

• Decentralized trust:

  The key reason that organizations use blockchain technology, instead of other data stores, is to provide a guarantee of data integrity without relying on a central authority. This is called decentralized trust through reliable data.

• Blockchain blocks:

  The name blockchain comes from the fact that the data is stored in blocks, and each block is connected to the previous block, making up a chainlike structure. With blockchain technology, you can only add (append) new blocks to a blockchain. You can’t modify or delete any block after it gets added to the blockchain.

• Consensus algorithms:

  Algorithms that enforce the rules within a blockchain system. Once the participating parties set up rules for the blockchain, the consensus algorithm ensures that those rules are followed.

• Blockchain nodes:

  Blockchain blocks of data are stored on nodes—the storage units that keep the data in sync or up to date. Any node can quickly determine if any block has changed since it was added. When a new, full node joins the blockchain network, it downloads a copy of all the blocks currently on the chain. After the new node synchronizes with the other nodes and has the latest blockchain version, it can receive any new blocks, just like other nodes.

There are two main types of blockchain nodes:

• Full nodes store a complete copy of the blockchain.
• Lightweight nodes only store the most recent blocks, and can request older blocks when users need them.

Three types of blockchain

• Public blockchain.

  A public, or permission-less, blockchain network is one where anyone can participate without restrictions. Most types of cryptocurrencies run on a public blockchain that is governed by rules or consensus algorithms.

• Permissioned or private blockchain.

  A private, or permissioned, blockchain allows organizations to set controls on who can access blockchain data. Only users who are granted permissions can access specific sets of data. Oracle Blockchain Platform is a permissioned blockchain.

• Federated or consortium blockchain.

  A blockchain network where the consensus process (mining process) is closely controlled by a preselected set of nodes or by a preselected number of stakeholders.

Benefits of blockchain—The business value

The use of blockchain technology is expected to significantly increase over the next few years. This game-changing technology is considered both innovative and disruptive because blockchain will change existing business processes with streamlined efficiency, reliability, and security.

Blockchain technology delivers specific business benefits that help companies in the following ways:

• Establishes trust among parties doing business together by offering reliable, shared data
• Eliminates siloed data by integrating data into one system through a distributed ledger shared within a network that permissioned parties can access
• Offers a high level of security for data
• Reduces the need for third-party intermediaries
• Creates real-time, tamper-evident records that can be shared among all participants
• Allows participants to ensure the authenticity and integrity of products placed into the stream of commerce
• Enables seamless tracking and tracing of goods and services across the supply chain
• Provides food safety with Oracle Blockchain Platform

Blockchain IoT partnerships

Blockchain is no longer an emerging technology. In fact, blockchain has continued to progress solutions and address business needs with other technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and machine learning. These key technology partnerships help users achieve important insights from data.

In an IoT deployment, traditional IT systems are not built to handle the massive amount of data that is generated. The volume, velocity, and variety of data produced by IoT networks could overwhelm enterprise systems or severely limit the ability to trigger timely decisions against trusted data. Blockchain’s distributed ledger technology has the potential to address these scalability challenges with improved security and transparency.

What is Hyperledger?

Hyperledger is an open source project started by the Linux Foundation to advance global collaboration of blockchain technologies. The main purpose of Hyperledger is to develop open source blockchain implementations that address enterprise goals for scale, performance, and security. Hyperledger supports a neutral, open community of members who contributed code to develop Hyperledger Fabric, the software that many enterprises use as the foundation for blockchain projects.

As a key member of Hyperledger, Oracle and our Blockchain solutions are built on Hyperledger Fabric, leveraging open source and maintaining interoperability with core protocols.

How did blockchain get its name?

What was blockchain originally created for?

When was blockchain came into existence?

What is the name of the first blockchain?