Business networks today are often inefficient because each participant in the network keeps records, or a ledger, of all transactions between all the parties that the business interacts with. This process is expensive because of duplication of effort and intermediaries adding costs for their services. One solution to this problem is Blockchain.
Blockchain is an emerging technology that can radically improve banking, supply chain, and other transaction networks and can create new opportunities for innovation. Businesses contain many examples of networks of individuals and organizations that collaborate to create value and wealth. These networks work together in markets that exchange assets in the form of goods and services between the participants. To learn more about blockchain technology you must study in the best CS college in Coimbatore.
Blockchain technology provides the basis for a dynamic shared ledger that can be applied to save time when recording transactions between parties, remove costs associated with intermediaries and reduce risks of fraud and tampering.
Say you have bought a Luxury Watch or a Pair of Sun Glasses. How could you say that they are genuine? There are so many fake products that look exactly like the original, in fact, are even more perfect than the actual ones. Say you want to make a multi-million investment in a work of art? Say, a Painting or Sculpture. How can you say that the Sculpture or the Painting is actually made by the artist that one claims that it was made by or that it was not stolen? Being able to have accurate information about the history of any item of value is essential. Isn’t it? But we are dealing with Hackers. This is a World of Malware. It makes it difficult to guarantee the integrity of the value we are buying. The answer to this is “BlockChain”. BlockChain can provide a single source of truth that is permanent, verifiable, and unchangeable.
Blockchain operates all parties involved in a business network a secured and synchronized record of transactions. The blockchain lets you record every sequence of transactions from beginning to end whether it’s hundreds of steps in a supply chain or a single online payment.
As each transaction occurs, it is put into a block. Each block is connected to the one before and after. Groups of transactions are blocked together and a fingerprint of each block is added to the next thus creating an irreversible chain. That is why blockchain is ideal for recording the mining, refining, and distribution of one of the most valuable goods in the world. It can trace a diamond’s path from the mine to the hands of the consumer with exceptional security and transparency. Blockchain works with all types of transactions. There are 3 key features that make a hyper ledger blockchain uniquely capable to handle the requirements in a regulated industry like diamonds, it is distributed, it’s permission, and it’s secure. Because the ledger is distributed, it works as a shared form of record-keeping ensuring that no person has ownership of the organization. As the diamond cycles through this supply chain, everyone involved in the process is permission to have every record and piece of data. Transactions can be added to the chain without consensus across the participants. This means no one person can add to or alter the blockchain, without being permanently recorded, making it tamper resistant and highly secure, and eliminating the risk of fraud and error. No one, not even a system administrator can delete it. In the case of diamonds, a blockchain ledger keeps a record of high-resolution photos of each diamond at every touchpoint along its journey. It holds certificates of authenticity, real-time records of every payment and transaction as well as product details like cut, clarity, carat, color, and diamond serial number. At the end of the buying cycle, there is a complete auditable and indisputable record of information. Blockchain technology gives us the ability to transform industries of all sorts, from diamonds to flowers, monitory transactions, or even things like contracts, deeds, records, and other public and private agreements. It frees up capital flows, speeds process, lowers transaction cost, and most importantly provides security and trust. Blockchain will do for business as the Internet did for communication. You can research and know more in this field if you study in the top college for Computer science in Coimbatore.
Value of Blockchain:
Let us focus on 3 key areas where a Blockchain adds additional value on top of what the internet is able to regularly do.
- Value: Through the use of blockchain we can actually transfer a digital asset to another party over the internet without needing a third party. As we all know the key problem with the internet that happened with the music industry is, when people were able to take a song, covert it into mp3, and share it with other people, you basically lose the value of that song, because you have an unlimited quantity of mp3’s which you can create digital copies of. In the recent past, we have heard about a lot of music directors copying the music from other musicians, but through the use of blockchain, you can enable what is known as Digital Scarcity. You can create a digital asset that is unique. Then using blockchain you are able to transfer that unique digital asset to another party over the internet, without needing a third party.
- Trust: Blockchain enables creating a permanent, secure, and unalterable record of who wants what. You have a single source of truth permanently recorded on the blockchain through the use of hash cryptography. You can have digital fingerprints of every single transaction that happens and you can make sure that if that digital fingerprint is accurate nobody has tampered with that information. Through the use of advanced cryptography blockchain, you can create a permanent, secure, and unalterable record of who actually owns what.
- Reliability: Blockchain is often referred to as distributed ledger technology. And that is because you have multiple copies of that blockchain and you can spread them across a decentralized network. What that means is that instead of having a single point of failure like centralized data that you could hack, instead you have multiple copies of this blockchain and they will spread across multiple computers, distributed across the network. This makes the information stored on blockchain much more reliable since there is no single point of failure which can bring the entire system down.
Although blockchain holds great promise, the current blockchain technology offerings are emerging and underdeveloped. Therefore, it is imperative to experiment and explore at the top Computer science engineering college.
By
Mr. Arulkumar V P
Assistant Professor,
Karpagam Institute of Technology.
Supported by
Mrs. Sruthi, Program Manager, Amazon