At its most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words “block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public database (the “chain”). The technique is intended to timestamp digital documents so that it’s not possible to backdate them or temper them. The blockchain is used for the secure transfer of items like money, property, contracts, etc. without requiring a third-party intermediary like bank or government. Once a data is recorded inside a blockchain, it is very difficult to change it.
“Blocks” on the blockchain are comprised of advanced snippets of data. Blocks store information about transactions like the date, time, and dollar amount of your most recent purchase. Blocks store information about who is participating in transactions. Blocks store information that distinguishes them from other blocks made up of a unique code called a “hash”.
How Blockchain Transaction Works?
- 1. Some person requests a transaction. The transaction could be involved cryptocurrency, contracts, records or other information.
- 2. The requested transaction is broadcasted to a P2P network with the help of nodes.
- 3. The network of nodes validates the transaction and the user’s status with the help of known algorithms.
- 4. Once the transaction is complete the new block is then added to the existing blockchain. In such a way that is permanent and unalterable.
Anyone can view the contents of the blockchain, but users can also opt to connect their computers to the blockchain network as nodes. In doing so, their computer receives a copy of the blockchain that is updated automatically whenever a new block is added, sort of like a Facebook News Feed that gives a live update whenever a new status is posted.
Important Real-Life Use Cases of Blockchain
1.Dubai: The Smart City
In the year 2016, smart Dubai office introduced blockchain strategy. Using this technology entrepreneurs and developers will be able to connect with investor and leading companies. The objective is to implement blockchain base system which favours the development of various kind of industries to make Dubai ‘the happiest city in the world.
2. Incent Customer retention
Incent is CRAAS (Consumer retention as a service) based on the blockchain technology. It is a loyalty program which is based on generating token for business affiliated with its related network. In this system, blockchain is exchanged instantaneously, and it can be stored in digital portfolios of user’s phone or accessing through the browser.
3. Blockchain for Humanitarian Aid
In January 2017 the United Nations world food program started a project called humanitarian aid. The project was developed in rural areas of the Sindh region of Pakistan. By using the blockchain technology, beneficiaries received money, food and all type of transactions are registered on a blockchain to ensure security and transparency of this process.