What is blockchain technology and how do we apply blockchain techology?
Blockchain is an emerging distributed and immutable public ledger that stores the ownership of digital assets. And it can store the records in an approach that decentralizes those records among several different systems located around the whole world. Furthermore, any data stored in blockchain technology will not be tampered and makes it ideal for payments, cybersecurity, healthcare, entertainment and related industries. Because records are stored and linked together using cryptographic hash algorithms. Otherwise, it would require the collaboration and collision of a majority of the blockchain participants to change the subsequent distributed records of the blockchain.
Blockchain technology is behind the recent surge of digital currency or cryptocurrency in the financial industry. And it is an advanced distributed architecture that allows transparent information sharing within a business environment. Furthermore, the main application area of the blockchain technology is to conduct robust transactions in a secure network.
Some benefits of blockchain technology include the following:
- Visibility
- Enhanced security
- Innovations and smart contracts
- Tokenization
- Improve speed of transactions
- Reduces cost
- Provides immutable records
- Open-source platform
- No central authority
The major types of blockchain technology are discussed as follows:
- Public blockchain: a platform that anyone with Internet access can sign on to a blockchain platform to becoming an authorized node. And this type of blockchain technology allows users to gain access to current and past records and thereby allows them to mining activities on the transactions.
- Private blockchain: a type of blockchain technology that works in restrictive environments and requires users to gain permission before accessing the platform.
- Hybrid blockchain: a type of blockchain technology that combines features of both private and public blockchain technologies. It enables organizations to set up a private and permission based platform with a public and permissionless platform.
- Consortium blockchain: a type of blockchain technology that incorporates features of public blockchain and private blockchain platforms. And it allows a federation of different organizations so that they can collaborate on a decentralized environment.