Blockchain: Before it’s too late, learn about Blockchain Technology in the simplest possible way. | by Tech Bugg | Sep, 2023
When corruption runs rampant behind closed doors, it often leads to the proliferation of transactions involving black money. These transactions are typically recorded in a centralized database, but unfortunately, this database cannot always be trusted. There are several reasons for this lack of trust.
Firstly, ordinary individuals are often unable to access the database, which means they have no way of verifying the accuracy or legitimacy of the recorded transactions. This lack of transparency creates an environment ripe for corruption and manipulation.
Secondly, the database administrator has the power to modify the data at any time. This means that transactions can be altered or deleted without anyone knowing, further exacerbating the issue of corruption.
To address these concerns, a decentralized system known as blockchain has emerged as a potential solution. In simple terms, blockchain acts as a ledger that records transactions, similar to how a supermarket records the purchases of its customers. However, instead of being controlled by a single authority, the blockchain is shared by everyone in the network.
One of the key features of blockchain is that the data recorded on it is not easy to change or amend. Each entry on the blockchain represents a block of data, and this data is stored in a specific pattern. The block contains relevant information about the transaction, such as its origin and destination. It also includes a unique code known as a hash, which is generated based on the data entered.
Crucially, each block also includes the hash of the previous block in the chain, creating a chronological sequence of blocks. This ensures that any attempt to modify a block’s data will result in a change in its hash. This change will then impact subsequent blocks, making it extremely difficult for an intruder to alter the entire chain of blocks.
Furthermore, the consensus rule in a blockchain network adds an extra layer of protection. Every participant in the network has a copy of the blockchain, and if someone wants to make a modification, they must share their proposed block with everyone else. The network then collectively votes on whether the modification is valid or not. If the majority believes that the data is being falsified, the proposed change will not be implemented.
The decentralized nature of blockchain and its reliance on consensus make it an extremely secure system. Even if someone were to attempt to modify all the blocks in a blockchain, they would need to own 50% of the network in order to have a majority of votes in their favor.
Blockchain has been widely adopted in various industries, with cryptocurrency being one of the most lucrative applications. Bitcoin, for example, has revolutionized the way money is transferred across borders, reducing fees and increasing speed.
Another industry leveraging blockchain is healthcare, where patient records are stored securely and accessed by doctors when needed. Blockchain has also found applications in other sectors, including logistics, supply chain management, and finance.
In conclusion, when corruption and the manipulation of data become prevalent, a decentralized system like blockchain can provide a trustworthy and secure alternative. Its immutability, transparency, and reliance on consensus make it an appealing solution to combat corruption and ensure the integrity of transactions. As technology continues to advance, blockchain will likely play an increasingly important role in many aspects of our lives.
