0When you receive any goods from someone, what made you determine its originality? How can you trust, if the goods you received are not tampered with? One of the ways is to keep track of all the transactions related to these goods in a ledger system. From the beginning of the human era, people recorded all the transactions of their day to day life. People used ledgers and wrote down the transactions.
Problem statement:
Example 1:
Example 2:
Suppose, person ‘A’ wants to transfer money to person ‘B’. This is typically done, using a third party (trusted party). Trusted party will identify the target party and then transfer the money after taking some money as a commission.
Blockchain will try to transfer the money without any third party trusted entity. Second, it is faster and immediate. Third, it is cheaper.
Why it is cool?
Blockchain is cool because all the information will sit in personal nodes in a network. It not only makes it decentralized but it also makes it distributed. Each transaction that occurrs will be placed in a block and it’s connected to the other blocks. Fingerprint of the block is added to the next block, which makes a stable strong irreversible chain. This is not owned by any central person. Everyone owns it and helps in its running. This uses Cryptography, so that it cannot be tampered with.
Thus, if we consider back to the above mobile example, all the transactions are transparent to the entire stakeholders. No new entry can be added without the consent of the stakeholders involved. This means no one person can alter the bock chain. It's secure and trusted!
- Government
- Healthcare
- Insurance
- Retail
- Finance.
