Zephyrnet Logo

Prospects of the Use of Blockchain Technology in the Modern World

Date:

Blockchain is a modern, highly reliable information technology with a decentralized structure. It is being developed and used in many areas such as healthcare, media, e-voting, file storage, smart contracts, insurance, and the public sector (issuing passports, collecting taxes, registering land plots, etc.). Therefore, it is not surprising that Blockchain engineering services are becoming very popular today.

Definition of Blockchain and Principle of Its Operation

Blockchain is a special distributed data structure consisting of a sequence of blocks. Each block, in turn, includes a hash of the previous block, forming, as a consequence, a block chain. The chain’s initial block (usually called a genesis block) is considered a special case since it lacks the preceding block. Blockchain works as a distributed database that keeps track of all transactions on the network. Operations are time-stamped and stored in blocks, where each block is identified by its cryptographic hash. Blockchain is completely stored in each network node. Therefore, it does not require connection and trust between network nodes. Each node can independently verify that its copy of the database coincides with the copies stored in any other node.

The most famous example of using Blockchain is the cryptocurrency – Bitcoin. At this time, cryptocurrency has become a recognized means of payment, a virtual currency accepted by large and small enterprises, corporations, and services. So, let’s briefly consider the principle of operation of Blockchain technology in the example of cryptocurrency.

Thus, Bitcoin uses the SHA-256 cryptographic hash function. Tree hashing is usually used to verify the integrity of the block data. It represents a special data structure that includes information about transactions. First, a hash is calculated from each transaction, and then a new pair hash is calculated from each hash pair. This procedure is repeated until one hash remains. If the pair is not found in the hash, it moves to the next level without changes. After verification, the group of transactions is documented in a special block. The block usually has a header and a list of transactions. In addition, the timestamp specified when the block was produced and indicated that the data in the block existed at a certain point in time.

Advantages of Blockchain Technology

The main advantages of Blockchain that ensure its effective use in the Internet environment include the following:

  • Blockchain is a public distributed database of all network transactions;
  • The Blockchain network is fault-tolerant because it operates without a single sign of failure;
  • Blockchain is a fixed and durable distributed database, and once transactions are documented in Blockchain, they cannot be modified or removed;
  • The Blockchain network has a high degree of scalability;
  • Cryptographic methods protect all Blockchain transactions;
  • Blockchain allows devices to operate autonomously without any trusted party.

Therefore, Blockchain technology offers solutions to privacy and security in the Internet environment, providing a new computing layer where data can be securely processed and analyzed while remaining private. Therefore, its use is justified and promising in the future.

Source: Plato Data Intelligence: PlatoData.io

spot_img

Latest Intelligence

spot_img