Recapitulation of recent trends in Blockchain Technology

What comes to your mind when I say “Blockchain”? The cashless transaction, Bitcoin, Cryptocurrency or Ethereum? These are financial transactions of digital assets done with the help of Blockchain technology. Then, what is a Blockchain? Blockchain is a decentralized, distributed, digital ledger that holds the transaction details in a network. It consists of chains of blocks that store the data. These blocks are immutable and used by industries that require high security, including payments, cybersecurity, healthcare etc.

Overview

The overview of Blockchain technology is given below. Blockchain is

• A Distributed Ledger Technology (DLT) that uses decentralization and cryptographic hashing
• A database that stores encrypted blocks of data that are chained together
• An immutable record that stores a digital asset
• A transparent ledger that maintains the integrity of the document

Properties:

• Programmable – It includes smart contracts
• Distributed – A copy of the ledger is maintained with each participant in the network
• Immutable – The records are irreversible and cannot be changed
• Unanimous – The validity of each record are agreed upon by each participant
• Anonymous- The participants’ identities are pseudonymous
• Secure – All the records are encrypted

Important concepts:

Blocks

Every chain involves multiple blocks with some basic elements, including data, randomly generated 32-bit nonce and 256-bit hash linked to nonce.

When the first block is created, a nonce produces the hash. The data is signed and always tied with the nonce and hash providing a high level of security.

Nodes

In a blockchain, the nodes contain the ledger that is distributed across the organizations. Hence, no single organization will possess a chain of nodes.

Every node possesses a copy of the blockchain. For each transaction like read, write or update, the nodes in the network must verify and approve the block.

Every transaction in the ledger is checked and verified by each other nodes, making the blockchain more transparent. Each participant is given a unique identification number that shows their transactions.

This Public Key Infrastructure in the blockchain maintains integrity and creates trust between users.

Applications:

Blockchain finds its way in wide areas of application, including automotive industries,  Banking and financial services, Government sectors, Healthcare systems and life sciences, Insurance, Media and Entertainment, Retail and consumer goods, Telecommunications, Travel and transportation, Personal identity security, Real estate.

Indian Companies using Blockchain Technology:

Blockchain technology has found its way into many applications. Listed below are a few Indian companies working in Blockchain Technology, giving opportunities for job seekers in blockchain technology.

1. Hyperlink InfoSystem
2. Accenture
3. Fueled
4. Infosys Limited
5. Capgemini Technology Services India Limited
6. Tata Consultancy Services
7. Zensar Technologies
8. Tech Mahindra
9. HData Systems

US-based Companies using Blockchain Technology:

Blockchain is a genuine disruptor in numerous industries. Here, we have listed a few US-based companies that are using blockchain.

Coinbase, Gemini, Paxful, BRD – A digital group to purchase and sell cryptocurrency.

Republic – a blockchain-powered investment platform that allows users to easily and securely invest in startups, real estate, crypto and even video games.

TQ Tezos – TQ Tezos works across industries to discover, design and implement innovative blockchain opportunities for both private and open-source environments.

Spring Labs – Spring Labs enables faster and more secure information transferring between businesses by using blockchain’s power of transparency and real-time data ledger technology.

SALT, Celsius Network – influence their cryptocurrency for cash loans.

Robinhood, BitMEX – A trading platform to buy and sell stocks, Exchange Traded Funds and cryptocurrency.

OPSkins – A trading platform for gamers to trade accessories virtually.

Civil – Influence journalism through blockchain where journalists can launch their own newsrooms.

IBM – IBM is the largest company in the world-embracing blockchain. It Integrates hyper ledgers and the IBM cloud into their systems.

Omega Grid – manages peer-to-peer energy sales.

Types of blockchain Technology

There are 4 categories of blockchain networks: public blockchain, private blockchain, hybrid blockchain, and consortium blockchain. Each type has its own advantage and disadvantages and is used for different purposes for different end-users. A public blockchain is a permissionless blockchain where any user can join the network and become a node, and it does not restrict the rights of other nodes on the network. All the other types are permissioned blockchains where a node can restrict access to certain nodes in the network.  The identities of one user are known to the other users, making it less secure when compared to permissionless blockchain.

A public blockchain is completely decentralized, and there is no central authority to maintain the network. A private blockchain is controlled by a single authority or organization. These are managed blockchains. Hybrid blockchains are private blockchain systems with access controls similar to public blockchains implemented in a single organization. A consortium blockchain is a hybrid blockchain shared among multiple organizations on a decentralized network. It is also called a federated blockchain.