Blockchain

Blockchain is a shared database that is shared among computers across the world. It stores
information in digital format. Blockchain is best known for its role in cryptocurrencies, for
example, Bitcoin, Ethereum, etc. Blockchain’s role in that is maintaining a secure and
decentralized record of transactions. As the name implies, data is stored in blocks, it has
limited capacity to store information. Once the block is filled fully, it links with the
previously filled block. This eventually makes a chain of information — Blockchain.

The goal of Blockchain is to store and distribute digital information but not be edited. In
other words, recorded data cannot be edited, deleted or, destroyed. Thus, Blockchains are also
known as Distributed Ledger Technology. The data stored in Blockchain is encrypted, which
means that only the owner of the record can decrypt it. For example, you are going to a
Parlour to buy ice cream. You paid for the ice cream via UPI in 3-5 seconds. In that 3-5
seconds UPI agency checks that you have an adequate amount in your bank account, that
amount is transferred to the benefactor. The same process is done by the Blockchain but there
is no central agency. This transaction is verified by the nodes of computers across the world.
Unlike UPI, a transaction in Blockchain is secured, parties involved in the transaction cannot
be traced.

Blockchain does not store its information centrally. Instead, it stores the information across
computers across the world. When a block is added to the chain, the entire chain updates the
record of the data rather than storing it centrally. Which makes it even difficult to temper the
information. It is easy to think that if the data is verified by computers across the world
(Miners) then everyone can access to that data but it is not true. Every block has a unique
identity — hash. Hash is recorded on the Blockchain, not the actual information. That is still
safe with the owner and only he/she has the right to decrypt it.

Not only the Banking sector many other industries can also benefit from the Blockchain
technology such as digital certificate management, transfer of land records, pharma supply
chain, e-notary services, e-sign solution, duty payments, automated customs enforcement and
compliance, agriculture supply chains, e-voting, crypto wallet, health records, cross-border
transports, public service delivery, charity donations, smart grid management, and many
more. Unable to tempering is not the only reason why one should adopt it, it can also
integrate existing applications like e-Sign, e-Certificate, and Digilocker.

The future of Blockchain is still uncertain but cybersecurity is one of the most promising
sectors in which we can see growth for blockchain. The current challenge in the industry is
data tempering, Blockchain can be used to prevent tampering. As we move forward from the
pandemic towards the new normal, it’s likely that Blockchain will be front and centre of the
progress. It can change many sectors in the brave new digital world.