, a technology that powers Bitcoin, the most popular cryptocurrency, is a distributed ledger that essentially stores all the transactions in a distributed peer-to-peer network of multiple nodes or blocks. Blockchain is a decentralized architecture consisting of built-in security to enhance trust and integrity of transactions. One of the most important feature of blockchain is the ability to ensure integrity of transactions by creating immutable ledgers with each block being permanently saved and never changed. Blockchain also delivers a high level of transparency by sharing transaction details among the individuals involved in the transactions.
Information security, these days, presents an essential issue for majority of technologies and blockchain addresses those issues and provides better security as it uses a public key infrastructure to protect data and information against malicious and nefarious actors and actions. Blockchain essentially eliminates the single point of failure that affects the entire system. Blockchain has significantly revolutionized the exchange of information and media and has been considered as a path-breaking innovation of today’s world. According to Reports and Data, the global blockchain market is expected to reach USD 173.78 Billion in 2028, registering a CAGR of 64.3% during the forecast period.
Blockchain – Major Types
- Blockchain has been classified into three major categories including public blockchain, private blockchain, and consortium blockchain. Public Blockchain – the records in the blockchain system are broadcasted and all the members can participate in the process of authenticating and validating transactions. In public blockchain, transactions are transparent and available to the nodes. Bitcoin is the famous example of public blockchain.
- Private Blockchain – Private blockchain can be referred to as a centralized network as the complete control is given to one organization and only members from the organization can participate in updating the ledger.
- Consortium Blockchain - This blockchain system is effectively monitored by several bodies and is slightly decentralized as few pre-selected group of nodes are selected to contribute to decision-making process.
Blockchain – Current Status and Advancements
Blockchain can seamlessly facilitate authentication and authorization without leveraging any trusted authority. Owing to its unique advantages and applications, the shift to blockchain technology for various purposes has been pivotal. Adoption and adaptation of the technology are on the higher side with enterprises and organizations rolling out new use cases to make the technology more visible and viable for use. Blockchain has tremendous promise to be used as an approach to developing robust systems for a plethora of applications within the field of cybersecurity. Blockchain-based systems ensure effective distribution of data and creation of transparent and reliable transaction ledgers.
Application prospects and use cases of blockchain are promising and have been providing better results since its inception. The technology has drastically evolved from initial cryptocurrency to current and new age smart contracts, with metaverse being the latest use case of the technology. Metaverse VR
, which has been termed as the next iteration of the internet, comprises blockchain-enabled decentralized applications that can support an economy of user-owned crypto assets and information. Blockchain is a crucial part of metaverse as the technology enables users to protect and secure their digital assets in virtual reality worlds of the metaverse.
Blockchain for enterprises has paved the way for future and many organizations are heavily investing in enterprise blockchain platforms to enhance their business models. Enterprise blockchain is geared up to meet the demanding requirements of organizations and some of the important features include decentralized nature, P2P network, immutability for preventing corruption, greater transparency, cost-effectiveness, and increased network efficiency.
The supporting infrastructure of blockchain has massive potential to transform delivery of healthcare, medical, clinical, financial, and other industries due to the extended functionality and distinct attributes of its distributed ledger. The radical growth of the technology is an appealing segment for organizations and enterprises that are interested in altering their business models to align with a more secure and distributed model of transaction.
Bhakti Shuke is a content writer at ReportsAndData
with a zeal for designing and developing all sorts of first-rate content. She is passionate about science and healthcare but also has a fervor to stay updated with the latest happenings in the world. When she is not writing, she can be found immersed in a book pretending the outside world doesn’t exist.
Jun 13, 2022