Do you know that data/information you store on databases online are vulnerable to abrupt changes, being hacked, altered or manipulated with or without your consent?

This can happen due to the centralized form of system that most industries and government in general practice. Centralized system is the type of system that doesn’t leave room for everyone to have an equal share of power.

An individual or group of individuals get to be the “bosses” while you, the end user of whatever product or service they provide, accept whatever rules they come up with.

They write your story, and you have little or no authority over their actions than to comply. There is no equality of power.

In this article, we’ll check out what blockchain technology is, its features, terminologies used in the blockchain world and how it can change the world. Shall we?

What is Blockchain Technology?

Quite a number of times, when a lot of people hear the word blockchain they subconsciously just narrow their mind to cryptocurrency.

Yes! Blockchain and cryptocurrency are very related. However, they are not terms that one can use interchangeably.

Blockchain is a system that stores data (blocks) in a distributed ledger, with the way it has been programmed using complex algorithms, it is not susceptible to random manipulation or hacks – highly secure.

What is a distributed ledger?

A distributed ledger is a digital ledger that is spread amongst numerous users of blockchain. It makes all transactions that are being carried out on the system visible to all.

Also, it helps with additional security, transparency and storage of tamper-resistant data.

To simply put, it is a means of storing data that is highly secured.

Cryptocurrency?

Cryptocurrency on the other hand, is a part of blockchain. Here’s where we find Bitcoin, Ethereum, Litecoin, Ripple, etc. All of which can be used to carry out transactions on blockchain.

Components of Blockchain

Wondering about what make up blockchain? Below are what you need to know:

Distributed Ledger:

A ledger in blockchain is likened to a transactional book that records and shows the database of users and how transactions are carried out.  It is called a distributed ledger because it is visible to all.

Smart Contract

With a smart contract in blockchain, there is no need for a third party. It is self-managed.

Transactions will only be successful and will run automatically when/if all pre-conditions are met.

This helps with the issue of trust and transparency.

Public and Private Key Cryptography

It works with the idea of a public and private key; a public key is the one that every user has access to. A private key on the other hand, isn’t for all.

However, I can encrypt a transaction from my end using a public key, my friend Favour can decrypt what I have encrypted using her own private key.

It’s easier to know it’s Favour because she wouldn’t have been able to decrypt my encrypted transaction if it wasn’t with her private key.

It can be likened to a house where two sets of keys can be used. Those people with the ‘master key’ can open any door.

Here in blockchain, the master key is the private key that can decrypt data that has been encrypted using a public key. It promotes confidentiality.

Features of Blockchain Technology

Below are the features of blockchain, they include:

Decentralization:

Blockchain technology is known to operate as a decentralized network. As opposed to the centralized form of system where there are ‘bigger people’ that can decide to change the game rules at any time, blockchain doesn’t allow this.

In blockchain, every user has just as equal a right to the system as every other person. This way you can be rest assured as a user that all transactions that are being carried out are being made visible and there’s no sort of inside an activity going on.

There’s a maximum reassurance knowing you’re not on the verge of losing all you’ve worked for or being cheated.

Immutability

Due to the complex algorithm of blockchain, it is not susceptible to hacks, manipulation, fraudulent activities etc like other forms of systems.

This is possible because on blockchain, a lot of users have access to the system and it will take a lot of work before an individual would be able to break this. It is tamper-resistant!

Consensus:

Blockchain technology can only be changed when there is a consent from the majority of the users. It works with the 51% rule.

The only way there can be a change is when half of the users have agreed to that change taking place

Terminologies To Get Familiar With While In The Blockchain Space

Just like the medical practitioners have their own words, it’s the same in blockchain technology. The following words or phrases are what you’ll often come across in blockchain related articles. They are:

1. Ledger:

A mode of storing data or transactions that can be likened to a physical book, just that it’s not a book!

2. Key:

A large string of numbers and letters used for scrambling data.

3. Hash:

4. Hash Function:

It is used to note changes that might have happened to the hash. Any changes would indicate that a thing has been altered! It lessens fraudulent activities and manipulation.

5. Decentralized:

This can be seen as a shared authority. No one has the power to own the whole network.

6. Proof-of-Work:

It is used in Bitcoin and it is used for qualification of a transaction.

7. Merkle Tree:

It is used to enable blockchain data to be efficient and secure It is also known as a Binary Hash Tree. Hashes on the lowest row are known as ‘leaves.’

Seven Industries that Blockchain Technology is Disrupting

Below are the top seven industries that blockchain is disrupting, they include;

1. Energy Industry:

With blockchain, the energy market can be decentralized. It’s easier to trade electricity on ledger.

2. Notary Industry:

Notary is the verification of the signature on a legal document. This can be subjected to fraudulent activities. However, with blockchain, it will be tamper-resistant and there will be more transparency.

3. Food Industry:

Overtime, food-borne diseases have been issues of concern. In respect to this, IBM is currently making use of blockchain to track the ‘journey’ of food from the manufacturing company to its destination.

With this, there will be verification, history, location of that particular food.

4. Media and Entertainment Industry:

Oftentimes, there’s always a bridge of agreement between record labels and their signed artists.

To counter this, smart contracts can be used. It will automatically allow an artist to receive his/her royalties once the condition that once a particular number of people have listened to your song has been met.

5. Healthcare Industry:

Lack of proper understanding of a patient’s medical history can lead to ineffectiveness of treatment given to that patient. Healthcare solutions due to this will be minimal.

With blockchain, there will be a strong database that gives an accurate medical history/information of a patient.

Also, there will be privacy of a patient’s information.

6. Real Estate Industry:

Blockchain in this sense, helps with better decision-making as transaction of ownership of assets is going to be as secure and as transparent as possible.

Also, there would be no need for additional inspection costs or property taxes.

7. Finances Industry:

Beyond cryptocurrencies, blockchain is used for streamlining and securing processes in banking, insurance, and more, including cross-border payments, remittances, and minimizing fraudulent activities.

Conclusion

Blockchain technology has the potential for creating more transparent, efficient, and secure systems is one of the reasons it will continue to attract significant interest across various industries.

Its capability in changing the world can not be undermined. As it’s still in its early stage, it has in no doubt, started disrupting some industries. Moving them from the old centralized form to decentralized.

Blockchain is making the impossible possible by allowing people to secure digital relationships and with it, you can be rest assured that you can be the business leader of your business and also have a say in this world.