Blockchain as the name implies consists of a series of blocks linked by chains and the preceding blocks derive their information from the first meaning that before being able to tamper with any of the blocks one has to tamper with all. Anyone with a copy can add new data to the database but cannot change the original record that is already in there. It consists of a sequence of blocks which holds a list of transactions like a conventional ledger.
CHARACTERISTICS OF BLOCKCHAIN
- DECENTRALIZATION Unlike the conventional banking systems that require transactions to be authorized through a trusted party (e.g central bank) which results in additional costs and increase in time wasted, blockchain transactions do not require a third party. Blockhain uses a distribution storage method and data is maintained by all nodes, there is no central hardware and organization.
- TRANSPARENCY The blockchain system is open, anyone can query the data and the system data is highly transparent. Transactions on the blockchain are transparent.
- ANONYMOSITY Each user can interact with one another using a generated address which does not reveal the real identity of each user.
Uses of blockchain Checking for Odometer fraud: most people try to change the odometer readings of their vehicle thereby making it appear newer and making unsuspecting buyers pay more, blockchain can be used to solve this problem by having a smart odometer connected to the internet and frequently updates the distance covered by the vehicle to a blockchain, this would in turn create a secure and digital certificate for each vehicle and because it is saved on a blockchain no one can tamper with the data and it can be easily accessed by anyone.
Keeping track of Intellectual property : one can also keep track of things like intellectual property using blockchain technology
Digital voting: currently voting happens either on paper or special computers that are running proprietary software, voting on paper is not cost effective and electronic voting cannot fully be trusted due to security issues. In recent times countries have moved from digital voting and are adopting paper again because they fear that electronic voting can be tampered with and influenced by hackers. But instead we could use blockchain to cast and store votes, such a system would be transparent as everyone could verify vote count for themselves and it would make tampering with it very difficult.
Storing medical records: blockchains could for instance allow us to store medical records on a blockchain and only allow doctors to access them when we approve it with a digital signature.
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