Blockchain technology in 2021

mobile app development

What is Blockchain?

In general, blockchain is a type of distributed led laser or decentralized database that constantly updates the digital records of who owns it. The rogue feature eliminates the need for centralized organizations and databases. Everyone on the blockchain network can view and authenticate transactions.

A blockchain allows people to transact with each other at any cost. This could be money, computing power, reward points, assets, music, storage space etc. The list is endless.

How Blockchain works?

Let’s take a real world example where we transact to understand “how blockchain works”. If you rent audio / video from a library, the library has a database of all tapes / CDs / DVDs. The library maintains a database of members, all media (which we will call tapes / CDs / DVDs collectively as media), borrowed, to re-tune each media and Pending date.

The Media Library user database contains your personal details, addresses, etc. and if you do not return the media in a timely manner, they may send the media a fine and recovery. This user database is centralized and personalized to the media library.

Now, suppose you need a media that is rented by someone else. You can’t go to the person to get the media because the details of the borrower are private. You need to request a notification from the library and rent it when it becomes available. Here, media transactions are only possible through an intermediary, i.e., the library and access to the media available in this library is limited.

Just think of a shared media library where anyone can join and borrow media and at the same time lend the media to other people, without bringing back the library or the original owner.

Now, the question is how do you keep track of who the media borrowed from, what media they owned, and who was the real owner of the media? An instant solution comes to our mind that you can assign one person in the group to maintain the records but you are back to getting the original library and central database model.

Here, in this case, the benefits of blockchain technology can actually be seen over the traditional centralized database model. A decentralized distribution of all media records in a blockchain library can provide a database and everyone on the network has access to these records.

Whenever a media is borrowed / withdrawn from a shared library, a transaction is created. All transactions are aggregated at the same time and added to a new block and this new block is added to the top of the previous block by referring to the previous block. One could go to the new block on the chain and see all the unloaded media and details of the borrower. By navigating to the previous blocks, one can see who had the media before.

Here, there is no central database or organization; If someone wants to claim to be the real owner of the media, it can be found in the new transaction block of the first block known as the “Genesis Block”. Blocks are seamless in nature in blockchain. Once a transaction has been added to a blockchain, it cannot be changed.