Blockchain is a word which you may have heard all thanks to the Bitcoin. Block and chain were 2 separate words initially but as the time passes people started using them together and hence the word blockchain. Its history backs to 1991 when Stuart Haber and W. Scott Stornetta wanted to create a system in which documents are saved with time stamp and cannot be tampered with. And in 2008 Satoshi Nakamoto conceptualized the first blockchain for Bitcoin.
Blockchain is digital ledger and it is a decentralized system where the record is added to the chain with a time stamp. In this user are connected in peer to peer connection following a protocol for inter-node communication and for the new block. The reason why it is so secure is that once data is recorded in the block, it cannot be altered.
There are few issues which need to be solved before its widespread adoption:
• Performance: Large scale application of any technology needs to be fast and reliable. According to one report blockchain can handle up to 20 transactions per second. And the legacy system can handle thousands of transactions per second.
• Interoperability: With so many players coming into the picture the question arises that there is no standard to allow them to interact with each other. On GitHub, there are more than 6000 projects on the blockchain using different platforms and language. By standardization, enterprises can collaborate on development and can share solutions and also work on integrating the existing systems.
• Environmental Cost: It heavily relies on the encryption of data for security and distributed network consensus. To do all this complex algorithm must be run, which takes a lot of time and also need a large amount of computing power. And all of this needs electricity to get the job done. According to one report last year bitcoin network consumed as much energy as used by 159 nations.
Big companies are working on implementing blockchain as service and in various other sectors. Players who are in the race include Facebook, Alibaba, Amazon, Morgen Stanley, etc.
We are moving towards a decentralized system and all the major players are working on it but the problem still persists and need to be addressed. Solving a problem like this can have a huge impact and can address many related issues like electricity shortage.
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