A Blockchain can be defined as a growing list of records known as blocks, that are linked together by means of cryptography. Each block of records is made up of a cryptographic hash record of the previous block, transaction data and a timestamp. Blockchain technology has become a trending topic these days. And that is mostly because it is the foundation of the world’s most famous cryptocurrency known as the Bitcoin. Many governments owned and leading international banks have decided to bring up many of their conventional transactions based on the concept of Blockchain. The applications and potential of this Technology are very huge and are generally considered to be changing the means by which transactions are carried out in various fields.
In present times, there is a lot of activities on Blockchain Technologies. Most People have described this as the most disruptive technology in the past 15 years. Especially here that the financial markets are the one that is mostly affected.
The applications of Blockchain Technology are now being adopted into many sectors like healthcare, medicines, smart Properties, insurances, automobiles, and even in government areas.
Components of Blockchain Technology
1. Decentralization: Decentralization is one of the most critical components of Blockchain Technology which is the cause of all the benefits like trustlessness, censorship resistance, and immutability. Due to the decentralized nature of blockchains, no central database can be taken down by a government or terrorist outfit for personal gain. At its core, Blockchains have enabled people to come up with systems that do not rely on a centralized third party to keep money safe.
2. Immutability: One of the central tenets of cryptocurrency is to prevent double-spending. This requires that none of the previous entries in the ledger could be modified in any way. Blockchains are especially useful in a scenario such as this because changing previous ledger entries requires an attacker to have more computing power than the entire network of miners protecting the network, which is referred to as a 51% attack.
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