Blockchain is an incorruptible ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Blockchain can be considered as distributed database that maintains a continuously growing list of records,called blocks,secured from tampering and revision.Each block in BlockChain consists a link to previous block and timestamp. Blocks are resistant to modification of data,means once recorded,data can not be altered.
Let’s consider an example of BlockChain Technology, BLOCKCHAIN AS GOOGLE DOCS
The traditional way of sharing a document is to share document via mail,one person has sent the document to review to other person.Until and unless second person reverts back,first one can’t change.This is a deadlock.With Google Docs,both parties have the access to same document,can modify simultaneously.The document can be considered as shared LEDGER.
Shared Ledger,records all transactions across business network and shared between participants.Even the partcipant can have the replicated copy of ledger.Ledger is provided on the basis of permissions,only the viable transactions are visible.
Ledger is shared, but participants require privacy
– Transactions to be private
– Identity not linked to a transaction
– Transactions need to be authenticated
– Cryptography central to these processes
WHY BLOCKCHAIN ?
Blockchains are an emerging technology pattern that can radically improve banking, supply-chain and other transaction networks, giving them new opportunities for innovation and growth while reducing cost and risk.
PROS of BLOCKCHAIN
- Reduce costs and complexity
- Improve discover-ability
- Trusted record keeping
- Shared trusted processes
CONS of BLOCKCHAIN
- Need high performance (millisecond) transactions
- Small organization (no business network)
- Looking for a database replacement
- Looking for a messaging solution
- Looking for transaction processing replacement