‘Satoshi Nakamoto’ established a denaturalized storage system for his newly launched cryptocurrency, ‘bitcoin’ in 2009. Nobody knew that within a decade, its popularity would rise to an unprecedented level that today every sector is willing to adopt the blockchain technology. in this blog, you will read how bitcoin or cryptocurrency is different from blockchain and blockchain has its multidimensional approach to various emerging technologies.
What is blockchain?
Blockchain works on distributed ledger technology(1)that doesn’t require a central authority to validate or authenticate transactions. The transactions are managed by the peer-to-peer networks that validate new blocks only after adhering to a protocol of internode communication. It is considered to be one of the highest secured designs that adhere to high Byzantine fault tolerance.
New norms set by Blockchain
We often faced serious issues of transaction failures or ‘server down’ in a centralized banking system. It happened because the whole server is governed by one centralized web-server. People usually download from the base central server. Due to high volumes of load, it requires a high bandwidth internet connection.
But, in the blockchain, there is no centralized system. Blockchain stands for decentralization, transparency, and immutability. Here, all downloaders can download as well as upload the data. All transaction is highly validated by various decentralized channels. Downloads that happened in this method are fast, secured, and having a success rate of 100 percent. The unique feature of blockchain can be utilized by banks, government, healthcare facilities, supply chain, file storage, prediction markets, IoT (Internet of Things), energy grids, and many more institutions.
How cryptocurrency is different from blockchain?
Blockchain only serves the purpose of storage of information in the form of blocks in various locations. However, cryptocurrencies are difficult to counterfeit because they are based on blockchain technology. It means blockchain is the important paradigm of cryptocurrencies. The first blockchain-based cryptocurrency was established as Bitcoin and till today there are thousands of cryptocurrencies with various functions and specifications.
Is blockchain limited to cryptocurrency?
Blockchain has traveled a zillion miles and it needs to travel a lot in the domain of emerging technologies like AI, robotics, space science, cybersecurity, finance, healthcare, education, logistics, supply chain, real estate, and other technologies. So, cryptocurrency is the inception of blockchain and it is not the final destination of Blockchain. Blockchain has been burgeoning and it can take greater shape in technical revolution.
Cybersecurity and blockchain
Hackers are trained to hack to the system in a centralized system. What will happen when information is stored in various locations by decentralization techniques? It will give immense security to data and if a portion of data will be counterfeited from one location, another set of data will be stored in another location. A bigger blockchain network(2) is more efficient and it is difficult to break the chain. If hackers need to trespass a system, they need to dig down a million computers that have set in different locations.
IoT and Blockchain
IoT has faced many challenges and the most common challenges are security and scalability(3).IoT is relatively a weak and fragile system and an easy target for cyber-attacks by cyber hackers. Each day, the number of devices connected to IoT grows, but in the same manner authorization and validation don’t grow. To give a more scalable and more secure network of IoT, it needs to work on the decentralized system.
Blockchain has gained a rapid momentum with its security and scalability. Many emerging technical professionals are willing to accept the blockchain technology. Privacy is the major limitation of blockchain technology. If information will be shared across a million systems, then sensitive and confidential information can be leaked and it can be released in the public domain. Technical experts need to find a solution where confidential information will not be tempered and other technical and financial activities will be a seamless experience without the worry of infringement of sensitive data.