WHAT IS THIS BLOCKCHAIN
Blockchain is a digital ledger upon which bitcoin works. It works like a Google spreadsheet that is open to all.The data in a blockchain is automatically stored in packets of information called `blocks’, hence the name. In the blockchain, a copy of the ledger file is shared between thousands of participants globally , also called miners. Once a transaction is entered in the blockchain, it can never be erased or modified.
HOW DOES IT WORK?
Each `block’ is time-stamped and miners enter the transactions in a linear, chronological order in the record. They have to solve certain puzzles to be able to enter the data in the record, which ensures the process is secure.Each new block contains details of the previous block, thereby creating a `chain’.
HOW DID IT COME ABOUT?
“Blockchain was first devised by Satoshi Nakamoto, as a way to make his digital currency , bitcoin, work,“ said Kumar Abhishek, founder of ToneTag.Nakamoto, could be a real person, a bunch of people or a pseudonym.There has been a lot of speculation, worldwide, on who Nakamoto is.
WHY IS IT IMPORTANT?
There are no centralised databases in a blockchain.It ensures that no one individual or party in the system has the power to modify or tamper with the data. It also removes the need for a third party or central authority to authenticate or process peer-peer transactions and hence increases transparency .
WHO IS USING BLOCKCHAIN?
Bank of America, Barclays and Goldman Sachs are all experimenting with blockchain.“In India, one can top up airtime or buy vouchers of Amazon, Flipkart and more,“ said Sandeep Goenka, cofounder of Zebpay .Other applications could range from storing client identities to handling cross-border payments etc