What is blockchain? And how to use blockchain technology? These are two common questions that are usually asked after any discussion about Bitcoin. We have explained what Bitcoin is and how to buy Bitcoin in India, but here is a short summary-Bitcoin is a virtual currency, which is used by computers by solving complex mathematical equations encoded in algorithms.” Mining”. This is done using a technology called blockchain, which not only defines algorithm rules, but also acts as a public ledger-all transactions (such as mining or trading coins) must be verified against the ledger to ensure that the transaction is legal, and Transparent. This is an interesting idea. With the popularity of Bitcoin, its value has begun to soar, especially because the number of coins that may exist in the system is strictly limited. As a result, it becomes more difficult to “mine” each coin, and the value of each coin increases.
The process of mining through complex algorithms makes Bitcoin a cryptocurrency-in fact, it is just one of many popular cryptocurrencies, some of which are well-known alternatives are Litecoin, Etherium and Dash. These have different rules and pros and cons-for example, Litecoin is designed to mine and trade faster, and the increasing popularity of Ethereum means that the ecosystem surrounding the currency is constantly evolving. However, these are not the only uses of blockchain technology.
What is blockchain?
Brock Pierce, the co-founder of Blockchain Capital, a venture capital firm that invests in blockchain technology companies, explained in an earlier conversation with Advertisement Shout that blockchain is a public-private transaction ledger authority without any central control or single control. Or information library. Think of the blockchain as a public record-anyone can change it as long as they have the correct credentials (using the algorithm described in the blockchain for authentication), but all these changes are also public, including who changed the content . This means that any kind of records can be widely shared, but can be kept confidential and restricted, and can be kept up to date without losing the changer.
This sounds simple, but the key to the technology is that it does not rely on a central server to track all this information. Instead, distribute the blockchain to all users and use blockchain algorithms to measure its effectiveness. There is no “master” copy that anyone can access or edit; in a way, the infrastructure of the blockchain is a bit like sharing torrent files.
This makes it an important foundation for cryptocurrency, but in fact, there are more ways to play a role, and there are potential applications in different fields, although financial companies may be the most advocating blockchain companies.
How to use blockchain technology?
Blockchain technology has many different potential applications. Mumbai-based Auxesis Group is a research group established at IIT-Bombay about five years ago. It is one of the companies dedicated to building applications on top of the blockchain infrastructure. Its CEO Akash Gaurav collaborated in 2000 with Advertisement Shout had a conversation. An early interview on how to use blockchain technology.
“Our focus is to build product suites for different industries so that any organization can quickly deploy blockchain,” Gaurav said.
Oxsis designed a project for the Andhra Pradesh government. The government launched the VISA card and hopes to use blockchain technology to track transactions. The government wants transactions to be completed on a blockchain infrastructure so that it is transparent to all stakeholders, Gallaf explained, “Otherwise, Visa is the only one who keeps records.”
Other projects are currently under the NDA, but Gaurav talked about a medical project in which blockchain can enable better sharing of data between hospitals.
“A lot of data [from patients] It is still collected in paper format,” he explained. As a result, large-scale digital drives are being carried out across the country. The challenge is to share data between hospitals without causing privacy issues for patients. Gallaf said: “But , When using the blockchain, the attending doctor can update the patient’s data. If they go to another hospital, the data is available, but only the data can be accessed. With the patient’s digital consent. “
Enterprises also have a lot of potential
In addition to currency and government use for maintaining records, blockchain technology has other potential uses. For example, Yes Bank uses blockchain to manage supplier financing for its customers. In this way, suppliers can use the ledger to submit invoices and customers can seamlessly process payments.
Finacle’s technology provides support for many major banks in India, and Finacle has been paying attention to the future of blockchain. Rajashekara V Maiya, vice president and head of Finacle’s product strategy, said in an earlier interview that some of the areas currently available are international remittances and identity management. He said that one of the challenges he foresees is slow adoption, because early adopters have no advantage. Maiya added: “Unlike other digital technologies (mobility, analytics, cloud, etc.) that provide early adopters or monopolists with a competitive advantage, distributed ledgers require at least two parties to function.” Only when you are working together Need to pay. This is not easy for banks that have eliminated them in a highly competitive market. “
Auxesis said: “Indian companies currently only use the technology for only about a year, but have completed a lot of development work, and we are not far behind, because that is the early stage of slow development of things.” Gao Laf. Gaurav added: “So when we create use cases, they will learn from these scenarios.” Bajaj, Pidilite and others are studying things like supply chains using blockchain infrastructure, and there are more The company is also working hard to develop the process. “
At the same time, the advantage of the government’s interest in blockchain is that a huge user base will soon appear, which will be beneficial to the development of technology. He said: “Currently, the auxiliary ledger has more than 50 million users, which gives us an advantage over any other blockchain organization in the world.” He added: “When people talk about pilots, we already have some live projects. “
Although blockchain may be the future, cryptocurrency is not necessarily the future
Johan Gerber, Executive Vice President of MasterCard Security and Decision Products, said during a visit to Bangalore that he also had a conversation with Advertisement Shout. Gerber participated in MasterCard’s first innovation forum in India in the city, and showed us different ways to ensure transaction security, and then the issue of cryptocurrency appeared.He emphasized: “Yes, blockchain is, but cryptocurrency, they still face problems and solve them. Fiat currency [government backed money] It is still a larger and more open ecosystem. And it’s not necessarily safer, and there is much less regulation. I believe that blockchain technology can play an important role, but it is not necessarily limited to cryptocurrency. “
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