Blockchain – A Disruptive Technology (Part – I)
This series focuses upon the various facets of Blockchain technology, which the author will discuss in his subsequent posts.
Whether it is a gathering of tech savvy people or business representatives, of late there is a lot of hue and cry about a technology called, Blockchain. The way open source has overpowered licensed products some few years back, Blockchain is following the same footsteps. Some few years down the line it will presumably be the most accepted technology to exchange data – a “transaction”, in Blockchain terminology. One of the factors for its wide acceptance is because of the way it records every transaction in a ‘Distributed Ledger’ which disrupts the traditional way of recording in a ‘Centralized Ledger’ (a Ledger can be assumed as a page where every transaction is recorded).
Blockchain technology in its extreme disruption, replaces traditional Client–Server network by Peer-to-Peer network, where the ledger is stored in most of the participating peers (computer), making almost impossible for one entity to gain control over the entire network and subsequently over the data. Moreover, the judgement regarding the validity of a particular transaction is not in the discretion of a single entity (may be a bank). Rather there is a mechanism of polling among every participant in the Blockchain network regarding the validity of a particular transaction. This process is known as Consensus.
Once the process of consensus is over, the majority wins, which means that the decision of a valid transaction is based on the number of votes supporting it. Once a transaction is declared to be a valid one (also known as proof of work), it is recorded and updated in all the ledgers. Hence the validity of a transaction can’t be decided by an external entity (a bank), rather it is decided by the stakeholders in the entire Blockchain network.
To conclude, some of the classic demonstrations of Blockchain as a disruptive technology are:
Digitization of Certification Process: Globsyn Business School has digitized its certification process of diplomas which is awarded to their students through Blockchain. The digital key generated to access the certificate essentially reduces the time and hassle of going through traditional process of verifying physical documentations. This processing of awarding certificates prevents the documents from getting tampered and reduces the chance of producing fake certificates to the employers.
Crypto currency (Bitcoin) Exchange: Bitcoin implements Blockchain technology for digital currency exchange where no intermediary is required unlike traditional currency exchange process.
Stay tuned for my next blog where I will demonstrate the technical aspects of a Blockchain transaction Cycle.
Conclude your reading by leaving a comment here and also your thoughts on the topic. I would appreciate your input on the topics which you would like to hear from me in my subsequent blogs.
Prof . Kaushik Ghosh
IS School of Excellence
Globsyn Business School
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