Friday, 15 February 2019

How Blockchain Technology propelling Businesses?

      BlockChain is the new technology to store and manage data across the internet and other computing networks. BlockChain or Distributed Ledger Technology(DLT) was created as a result of the introduction of Bitcoin CryptoCurrency. Fundamentally, it is not a complex technology, but it enables complex solutions. Blockchain technology can be used as a foundation for new generation software distributes code that enables a transaction between individuals and machines without the need for complex infrastructure. It is a peer to peer network architecture that all participants are equal in the role on their network. It does not just offer a new way to manage databases and support trust, but it creates new opportunity. For example, If you are a professional photographer and you register your photographs on the digital blockchain, it will be difficult for someone else to claim that they took the picture.
      Blockchain changes the world that is working right now. It means to increase trust and efficiency in the exchange of almost anything. The blockchain is the shared distributed ledger that facilitates the process of recording transactions and tracking assets in the business network. Assets can be tangible assets that basically respect to house, car, cash or land and intangible assets like patterns, copyrights, or intellectual property. Virtually, anything of value can be traded and tracked on the blockchain network reducing the risk and cutting the cost it is involved.
     In real-world uses the blockchain beyond its original use for bitcoin. There is a great interest in technology that helps to track stolen diamonds, in adding to knowing whether the diamond is associated with conflict zone. A startup called "Everledger" has begun to use the blockchain to store information on almost the million diamonds. Each diamond is scanned to glean 40 unique points that are condensed into a digital footprint. Each time, a diamond moves from a seller to buyer, a new block is created and over a secure digital trail of ownership is established. This adoption of this solution is growing and Everledger is attracting attention from investors.

The Concept of BlockChain:  Blockchain architecture gives participants the ability to share in their
joy and updated through peer to peer application. Peer to Peer application means that each participant is connected to other participant and nothing is centralized. It is like all the participants are equally responsible for the network. It is the main functionality in the distributed ledger. It also means that each participant in the network as the subscriber and publisher.
Features: Blockchain Technology has important features like,
* Each node can send or receive the transaction to the new one and the data is synchronized across the network as it is transferred. It is economical and efficient because it eliminates the duplication of effort and reduces the need for intermediaries.
* Blockchain network has a key characteristic called consensus. For a transaction to be valid, all the participants must agree on its validity and when it comes to provenance, participants know where the asset came from and how its ownership has changed over a period of time.
* Once the transaction is completed, it can not be changed. This feature is called immutability. No participant can tamper at the transaction after it is recorded on the ledger. If the transaction is an error, a new transaction can be used to reverse the error.
* The major feature is Finality. A single shared ledger provides one place to go to determine the ownership of an asset or the completion of the transactions.

Transaction in BlockChain: Basically, Every transaction data is represented in such a way of block in the blockchain. It also stores the transaction data. As the number of transaction grows so does the blockchain block record and confirms that time and sequence of transactions which are
locked into blockchain discreetness rules. Basically, each blog contains a hash as you see the hashes that are nothing but digital fingerprint or unique identifier stamp batches of recent valid transactions and the hash of the previous block is stored over here. The previous blocks link to the blocks together that prevent any blocks altered or block being inserted and tampered in a specific way. So, once the transaction is committed, it can not be changed the databases or messaging technology, or transaction processing of business. It is the proof of evidence of work in the blockchain. This benefit is far beyond traditional databases.
    There are 4 important concepts in BlockChain. Those are,
    1. Shared Ledger: It is a system of record with a single source of trick and shared among all participant in the net. Each participant has a duplicate copy of the ledger and the participant can only see the transactions they are authorized to view.
  2. Permission: It is the authority that is given to the nodes in the blockchain. In the permission blockchain, Each participant has a unique identity which enables the user for the constraint network participation and access to the transaction details. Permission blockchain is effective in controlling the data for confidentiality and anonymity.
  3. Consensus: In Business Network whose participants are trusted. Transactions can be verified and come to ledger through various means of consensus. It means, there are certain defined protocols loaded in blockchain and you have to follow the particular protocol and that we call as a consensus. It includes a multi-signature and proof of state which is useful to validate the transaction.
4.  Smart Contracts: Smart contract is a digital agreement or set of rules that govern the business transaction which is signed by both parties who are undertaking the particular transactions. It is stored on a particular blockchain and executed automatically as part of the transaction. The smart contract may have many contractual classes that can be partially or fully or self-executing.
    The main purpose is to provide security superior to the traditional contract but reducing the cost and delays in traditional contracts. A smart contract may find certain digital contractual conditions. It is like the set of digital signatures which takes place within the party. They agree on the particular agreement or digital agreement, later they can perform the necessary transactions which is needed.
    These four concepts will be going through whenever we will be creating the blockchain.

WorkFlow in BlockChain:  Blockchain is the new database. Instead of a single database residing on a single server in the data center, the blockchain database is installed on an individual computer used by the people. In fact, the identical database is installed in every computer of every user of that database. It is called as a distributed database. In order to create a new entry in the distributed database, all participating company must agree to the change and the consensus must be reached.
      Basically, the transaction in the blockchain is designed in such a way that the block has been taken as a transaction and this transaction is checked and verified whether it is valid or not. If it is valid, it is taken inside the blockchain network and it is considered as an importer. If it is invalid, then it is again sent to the particular client or exporter.
      When analyzing the business aspects of the blockchain, the business has multiple sources of friction. The institution and instruments of trust emerge to reduce risk in business transactions. Still, many business transactions remain inefficient, expensive and vulnerable. Blockchain Technology has the potential to remove market friction. Market friction is nothing but the speed bumps that throttle or stop the business. It is anything that impedes the exchange of assets or adds cost or delays such as taxes, regulations, bureaucracy, fraud, an involvement of intermediaries, delays in executing contracts and so on. Various types of market friction impact different industries in different ways in varying degrees that drag the global issues in trade of showing business or stopping it. Here are the various types of Market Friction eliminated by Blockchain Technology,
   * Information Friction: - Participants in a transaction don't have access to information. Giving one party unfair at an advantage, the information may also have been incorrect or inconsistent leading to bad decisions or delays while reconciling it. This incurs costs and damage brand reputation.
       By including the shared ledger who has the information shared among the network reduces the information friction and permissions help certain people conduct the transactions. Also, various types of cryptographic methods with advanced permissions that ensure privacy on the network to preventing unauthorized access of transaction details and deterring the fraudulent activity.
   * Interaction Friction: - Business transactions take days or costly to manage via intermediaries are the prime candidate for disruption by nimbler components. It is often managed by the number of interactions required.
       Blockchain peer to peer architecture reduces the number of interactions or the parties which are required to execute particular interaction. Blockchain consensus shows that all the transactions are validated before being appended to the block and it is highly tampered resistance. Smart Contracts which are nothing but a digital signature that will help you the interactions, or reducing the interactions friction.
  * Innovation Friction: - It is an internal or external type that compromises the organization ability to respond particular value for reducing the cost and delays in regulatory processes. So, the automation can take place by eliminating governance through regulation that can lower the cost and reduce the delays inherent in the regulating process. Blockchain has the potential to eliminate the complexity and ultimately redefining the traditional boundaries of a particular organization.

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