Blockchain was invented by Satoshi Nakamoto in 2008 for use in the cryptocurrency bitcoin, as its public transaction ledger.The invention of the blockchain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted authority or central server. Researchers and technologists alike are talking about how blockchain technology is the next big thing across industries from finance to retail to even healthcare. According to Gartner, their client inquiries on blockchain and related topics have quadrupled since August 2015. This article attempts to provide a short executive summary on what blockchain technology is, how it works, and why has it captured everyone’s fancy.
First things first, what is blockchain technology?
Blockchain is the underlying technology behind cryptocurrencies like Bitcoin. Unlike physical currency, digital cash and cryptocurrencies come with a very real problem called Double-Spending. Let me explain what that is. When I email you a picture of my cat, I’m sending you a copy and not my original picture. However, when I need to send you money online, as much as I would love to send you a copy of it, it’s a bad idea if I really do that! With Bitcoin, there was a risk that the holder could just send copies of the same bitcoin token in different transactions, leading to “Double-Spending”....Every time a new transaction is initiated, a block is created with the transactions details and broadcast to all the nodes. Every block carries a timestamp, and a reference to the previous block in the chain, to help establish a sequence of events. Once the authenticity of the transaction is established, that block is linked to the previous block, which is linked to the previous block, creating a chain called blockchain. This chain of blocks is replicated across the entire network, and all cryptographically secured which makes it not only challenging, but almost impossible to hack. I say almost impossible because it would take some significant computational power to even attempt something like that......Blockchain technology can fundamentally change how we exchange value and perhaps that’s why this has caught everyone’s fancy. This is still in its nascent stages but definitely a technology that holds vast promise and something to watch for, in the future.
There are several announcement by the various Companies till now on the basis of Blockchain Technology.
1. In 2016, the central securities depository of the Russian Federation announced a pilot project.
2. Blockchain-based automated voting system project .
IBM opened a blockchain innovation research center in Singapore in July 2016.
3. A working group for the World Economic Forum met in November 2016 to discuss the development of governance models related to blockchain Technology.
4. According to Accenture, an application of the diffusion of innovations theory suggests on blockchains Technology.