Industries Transformed
- Supply Chain Management
- Finance and Banking
- Healthcare
- Identity Verification
- Gaming
Common Use Cases
- Cross-border Payments
- Digital assets
- NFTs (Non-Fungible Tokens)
- Decentralized Finance (DeFi)
Future Possibilities:
- Scalability
- Interoperability between blockchains
- Increased adoption in traditional industries
- New use cases and applications
Hey there!
In this article, we’ll break down the blockchain key concepts and give you a simple, technical intro to these game-changing technologies. Provided that you have read the layman’s intro to Blockchain and Smart contracts, by just going through these simple definitions will help you understand the technology. If you haven’t read, these definitions will be beneficial.
A simple definition of Blockchain
A distributed and decentralized Digital Ledger technology that allows transparent and secure record-keeping of transactions across multiple computers.
Decentralization in Blockchain
Blockchain operates on a peer-to-peer network. No central Authority controls or manages the execution of any type of transaction.
Transparency
All entities in a blockchain transaction can view the history of all transactions. Hence, satisfies “Trust in Integrity”
Security
Cryptography! Cryptography!! Cryptography!!!
Secondly, the process of consensus i.e. the transaction that happened or is to happen is validated and verified by every node on the network.
Smart Contracts
These are the agreements on which a transaction takes place. Being “Smart” means they are self-executable with “Rules of Trade” (Rules or Terms for the contract) on which the agreement is going to happen. They have predefined conditions and rules which should be met for a contract.
In short, these contracts do not need intermediary authorities to enforce and validate the terms.
Immutability
Once the transaction is executed, it can never be modified or deleted. Each transaction block contains a “hash” (data integrity check) of the previous block, creating a chain that cannot be tampered with.
Blockchain technology has a wide range of applications across multiple industries, including finance, healthcare, supply chain management, and more. As the technology continues to evolve, we can expect to see widespread adoption and innovation in the years to come.
For more information on how these work in the financial industry, visit this article.