by Hodler Ash 
Introduction to Blockchain Technology
Blockchain is an ingenious invention of the world. It is the brainchild of a famous person, or we can say a group of people who go under the pseudonym, Satoshi Nakamoto.
After the invention of Blockchain, it has developed a lot, and it has become a great technology. Let us have a brief introduction to Blockchain Technology.
Introduction to Blockchain
Blockchain in simple terms can be defined as a time-stamped series of records of data which is managed by a number of computers and not a single entity.
The blocks of data (i.e., block) are bound and secured to each other with the help of cryptographic principles (i.e., chain). The Blockchain network does not possess any central authority. It is an immutable and shared ledger where the information is open for every individual to see.
Anything which is built on Blockchain is transparent in nature, and everyone who is involved is considered to be accountable for their particular actions.
Blockchain Technology Explained
The infrastructure of blockchain costs but there is no transaction cost in blockchain technology. The Blockchain technology is an ingenious way to pass the information from one person to the other in a safe and fully automated manner.
One party initiates a transaction by creating a block. This block is verified by millions of computers that are distributed all over the internet.
The block that is verified is added to the chain, and it is then stored across the internet. It creates not only a unique record but also a unique history.
If a person wants to falsify a single record, then that person will have to falsify the entire chain of records into millions of instances. This thing is virtually impossible. Bitcoin makes use of this model for making monetary transactions.
Example :
Let us understand the blockchain technology with the help of an example. When we want to travel by train, we but tickets from the web or app ?
When we make an online payment with our credit card, the credit card company takes a small cut for processing the transaction. With the use of Blockchain, the railway operator can save on the processing fees of credit card and even the entire process of ticketing can be moved to Blockchain.
The two parties which are performing the transaction are the passenger and the railway company. The ticket is a block which is added to the ticket blockchain.
The ticket is a unique, unfalsifiable, and independently verifiable record similar to a monetary transaction made on Blockchain. The final block is the record of all the transactions made for a certain train or route, or even the entire network of trains, as well as every ticket sold, and every journey taken. The thing that differentiates Blockchain from others here is that it is free.
Blockchain can transfer and store money, and it can even replace all the businesses that work by charging a small fee for the transactions which are made between two parties on their platform. In the financial world, Blockchain can bring a revolutionary change.
Blockchain Technology will change the way in which insurances are contracted, loans are bundled, and also the working of the stock exchange. It will eliminate the bank accounts and also all the services which are offered by banks.
Every financial institution will become bankrupt, and they will have to change fundamentally when the concept of safe ledger without any transaction fees is implemented and understood by everyone.
The financial system is simply working by taking a small cut from your money for facilitating the transaction which you make.
With the implementation of blockchain technology in the financial system, the bankers will become mere advisers, and the stockbrokers won’t be able to get any commission.
Application of Blockchain Technology
The first application that was built upon blockchain technology was Cryptocurrency. Bitcoin and other cryptocurrencies were the first applications of blockchain technology.
People believe that bitcoin is interchangeable. But in reality, all the different cryptocurrencies are just an application of blockchain technology, and they can be changed.
Bitcoin is considered to be a major Cryptocurrency. It has been brought to the attention of people because of its speculative value.
People consider bitcoin as an investment opportunity after seeing the rise in its prices during the last year. Bitcoin had shown a massive increase in the price, which attracted a lot of investors to invest in it.
The people who had invested in bitcoin during its initial stage gained a massive amount of profit during the price rise of bitcoins. But there are some issues with the speculation.
The value of bitcoin is volatile. If the value of bitcoin can become $8000 from $5000, then it can also become $2000 from $5000. There is a lot of risk factor involved with an investment in bitcoin.
People have to take a risk while investing in bitcoins or any other Cryptocurrency.
Another thing that should be kept in mind before investing in bitcoins is that there are many security laws been regulated for the sales and investments of cryptocurrencies. This has happened because of the scams that took place during the time of price rise in bitcoins.
Why has blockchain technology gained admiration?
There are several reasons due to which blockchain technology has gained admiration. Here are some of the reasons.
- Blockchain Technology is decentralized as any single entity does not own it.
- The data stored in Blockchain is secure, and it cannot tamper.
- Blockchain Technology is transparent due to which a person can track the data when needed.
- The data has been stored cryptographically.
Conclusion of Blockchain Technology
We come to the conclusion of Blockchain Technology that it is a mechanism which brings everyone to the highest level of accountability. With the help of blockchain technology, there won’t be any human or machine errors, no missing transactions, and not even an exchange which takes place with the consent of the parties that are involved. Blockchain guarantees the validity of a transaction by recording it on a distributed system of registers which are all connected with the help of a secure mechanism. Blockchain is the innovation in the technology world which was earlier used only in the field of Cryptocurrency, but now its use has been started in the health, real estate, and financial industries. In this article you will find Blockchain Technology explained in the best manner.
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