What is Blockchain
Blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers. The technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta, but it was not until 2008 that an anonymous person or group of people known as Satoshi Nakamoto implemented the first blockchain as part of the cryptocurrency Bitcoin. The primary advantage of a blockchain is its resistance to data modification; once data is recorded in a block, it is extremely difficult to change.
What are the types of Blockchains?
There are primarily four different types of blockchains: Public Blockchains, Private Blockchains, Consortium Blockchains, and Hybrid Blockchains. Public blockchains like Bitcoin and Ethereum are completely open, allowing anyone to join and participate. Private blockchains, on the other hand, are restricted to specific members, often within a single organization. Consortium blockchains are semi-private and are controlled by a group of organizations. Hybrid blockchains attempt to utilize the benefits of both private and public blockchains.
How does Blockchain work?
A blockchain is comprised of a series of blocks, each containing a list of transactions. When a new transaction occurs, it is verified by a network of computers, known as nodes, and added to a block. Once a block is filled with transactions, it is added to the blockchain in a linear, chronological order. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data, creating an unalterable chain.
Where is Blockchain used?
Bitcoin: The original implementation of blockchain, Bitcoin has a market capitalization of over $1 trillion and processes approximately 300,000 transactions per day.
Ethereum: As of 2021, Ethereum processes around 1.2 million transactions daily and has a market cap of over $400 billion.
Supply Chains: For instance, IBM and Maersk's TradeLens platform, which uses blockchain to improve transparency and efficiency in global supply chains, has captured over 10 million events and 100,000 documents each week.
