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Blockchain Technology – Interesting Facts You Must Know

According to IBM’s point of view, Blockchain Technology is a shared immutable ledger for recording transactions and tracking assets in a business network.

Generally, assets are of two types tangible and intangible. Tangible refers to those assets which are visible like cars, buildings and machinery. On the other hand, intangible refer to those assets which are invisible like patents, copyrights and goodwill. Effectively which has value can be tracked and traded on a blockchain network by decreasing barriers and reducing costs.

The relevant topics to be discussed in this particular blog are merits of blockchain technology, top five blockchain technology companies, steps to become a blockchain developer and future of blockchain technology.

Forget Bitcoin: Blockchain Technology is the Future

Nowadays, Blockchain technology is growing and becoming more popular throughout the world of information technology. Moreover, Blockchain has proved to be more than just a digital payment platform. Blockchain has highly eliminated the requirement for a centralized managerial entity such as a bank.

This system is a series of data blocks that are chained together in a ledger of transactions. Each record is distributed among millions of computers all over the world. This latest technology is rapidly transforming various industries and encouraging such industries to grow faster.

Governments are likely to start applying distributed ledger technology(DLT) systems that will replace traditional paper-based systems. DLT has greater merits that provide better trust, transparency and better security through encryption and validation features.

As blockchain technology continues to grow we observe more improvements not only in cryptocurrency but also in various parts of business such as smart contracts, automated tracking and policy enforcement. The growth of blockchain is likely to have greater impact on business and society than most people realize.

Thus, ends the case study regarding blockchain technology and its future.

Invention and Development of Blockchain Technology

  1. Cryptographer David Chaum at first introduced a blockchain-like protocol in his 1982 dissertation “Computer Systems Established, Maintained and Trusted by Mutually Suspicious Groups”.

  2. Blockchain technology was also outlined in 1991 by Stuart Haber and W. Scott Stornetta. Both these mathematicians desired to create a system where document time stamps cannot be altered. In the late 1990s, cyberpunk Nick Szabo proposed using a blockchain to secure a digital payments system, known as bit gold.

  3. Thereafter, the first decentralized blockchain was popularized by a person (or group of people) known as Satoshi Nakamoto in 2008.

  4. Nakamoto upgraded the design in an important way using a Hashcash-like method to timestamp blocks without requiring them to be signed by a trusted party.

  5. In August 2014, the bitcoin blockchain file size, consisting records of all transactions that have occurred on the network, reached 20 GB (gigabytes).

  6. Within January 2017, the bitcoin blockchain grew from 50 GB to 100 GB in size.

  7. Later the ledger size had exceeded 200 GB by early 2020.

Thus, these above points indicates us the creation and development of blockchain.

Relation Between Blockchain And Bitcoin

The blockchain is a shared public ledger on which the whole Bitcoin network lies and seek support. Each and every confirmed transactions are recorded in the blockchain. It permits Bitcoin wallets to calculate and estimate their spendable balance so that the latest transactions can be verified thereby making sure they are actually owned by the spender. The integrity and the sequential order of the blockchain are enforced with cryptography.

Thus, a transaction is an exchange of value between Bitcoin wallets that gets included in the blockchain. Bitcoin wallets consist of a confidential piece of data called a private key or seed, which is used to sign transactions, providing a mathematical evidence that they have come from the holder of the wallet.

The signature done by a private key, also prevents the transactions from being contaminated by anybody once it has been issued. Now a question arises, “Is bitcoin the first blockchain?” For your kind information, devised in 2009 by a programmer (or, possibly a group of programmers) under Satoshi Nakamoto, bitcoin ushered in a new age of blockchain technology and decentralized digital currencies.

The implementation of the blockchain within bitcoin turned it to be the first digital currency for solution of the double-spending problem without the requirement of a trustworthy authority or central server.

How Does A Blockchain Work?

A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain Hero’s information and details electronically in digital pattern. Blockchains are highly popular for their important role in crypto currency systems like Bitcoin, for preserving a safe, secure and decentralized record of transactions.

Moreover, blockchain guarantees the transparency and security of a record of data and gains trust without the requirements for a trusted third party, authority or central server.

On the other hand, a blockchain gathers information together in groups, known as blocks, that keep sets of information. Blocks have certain storage spaces and when gets filled up are collapsed and linked to the previously filled block, creating a chain of information known as the blockchain. Hence, this is an ongoing process and keeps on continuing one after another.

However, a database generally structures its data into tables, whereas a blockchain, as its name refers, structures its data into blocks that are attached together. Though various kinds of information can be stored on a blockchain but the most common use so far has been as a ledger for transactions. The primary aim of blockchain is to enable digital information to be recorded and distributed but not altered. This is the way, how a blockchain works.

Applications Of Blockchain Technology

The various applications of blockchain technology are the following:

  1. Banking: Suppose you transfer rupees 1,000 to your brother through a commercial bank. The bank charges you a fee of rupees 100. So, in reality you are transferring your brother rupees 90. However, if he stays in some foreign country he will get less because of transfer rates and other charges included. Moreover, this process involves certain hurdles. It is also time-consuming expensive and is not sure to be 100% safe.  

Here is where blockchain disrupts the commercial banking system, by providing peer-to-peer payment system with outstanding security and less fee rate. Here again, blockchain eliminates the requirement for a third party to make a transaction. In this way, blockchain technology facilitates banking.

  1. Healthcare: Nowadays, various obstacles exist in the storage of a person’s health data. Anybody can easily have access to such private confidential information because it is consisted in centrally located files.  

On the other hand, to obtain a person’s health information it can take much time to pick the right file, providing great chances for data breaches, theft or losses. Here becomes the role of blockchain technology essential. Blockchain technology over here restricts the need for a central server and permits rapid access to needful data. Blockchain technology also makes it difficult for a hacker to alter the data.

  1. Government: Blockchain technology has the ability to end fraudulent activities in a traditional voting system. Under traditional voting system, voters stand in a queue to cast their respective votes, which is subject to risk followed by certain harmful threats and chaos.

Therefore, with the help of blockchain technology people can cast their respective votes easily without revealing their identities. After that government officials can count votes with absolute accuracy knowing that each ID can be attributed to only one single vote. Fraud cannot take place here under the surveillance or observation of blockchain technology. Once a vote is attached to a ledger it cannot be altered or deleted.

  1. Transportation: Using blockchain technology, it enables traceability advantage in the transportation industry, where the delivery of goods can be easily tracked or traced.

Benefits Of Blockchain Technology For Business

  1. Secure: blockchain technology when a transaction is finally recorded it cannot be changed or moulded. Block chain is always secure in nature as it consists of the encryption feature.

  2. Decentralized:  As it is entirely a decentralized system, no intermediary fee is charged at all. Blockchain technology also helps to reduce costs for organizations. It is highly efficient in processing and updating transactions.

  3. Reduces Manual Labour: It eliminates manual tasks and in turn provides opportunity for easy reporting and auditing processes. As it eliminates intermediaries and replaces manual tasks in transactions blockchain proves to handle transactions faster than other mediums. Hence, the above paragraph indicates the merits of blockchain technology.

  4. Fast In Speed: By eliminating intermediaries as well as reducing manual processes in transactions in an efficient and faster manner than conventional ways or methods.

  5. Innovation: Industries all over the world are applying and implementing blockchain-based systems to solve crucial problems and improve backdated practices.

  6. Permanent Record: On the blockchain, transactions once recorded cannot be changed or deleted. On the blockchain, all transactions are accurately time-stamped and date-stamped. So, it serves as a permanent record.

  7. Traceability: According to various experts, blockchain can highly enable us to track the origins of a variety of products. For example, from which wholesaler a particular amount of products has been supplied. A retailer using blockchain can identify them.

  8. Government Benefits: Blockchain can highly enable governments to work smarter and innovate quickly. Blockchain increases trust while providing an immutable audit trail for regulatory compliance, contract management, identity management and citizen services.

  9. Pharmaceutical Benefits: As pharmaceutical products are transferred through the supply chain, every transfer of product is recorded. Thus, blockchain enables every manufacturers to locate a recalled product in seconds.

  10. Insurance Benefits: Insurance companies utilize blockchain and smart contracts to eliminate manual and paper-intensive processes such as underwriting and claims settlement, increasing efficiency and reducing costs. Blockchain’s quick data exchanges helps to reduce fraudulent activities.

Steps on How to Become A Blockchain Developer

Step 1. Gain Required Knowledge:

Right at the very beginning, strengthen your knowledge in the field of computer science or information technology. You can pursue a Bachelor’s or Master’s degree in such fields.   This degree in turn will enable you to understand the fundamentals of Blockchain Technology easily. Almost every degree holders are able to grab amazing career opportunities as well.

Step 2. Obtain Required Tech Skills (Web Designing & Development Process):

  1. Programming Languages: It is essential to know the programming concepts (like OOPs) in order to become a Blockchain Developer. You can try to learn programming languages like Java, C++, Python, etc.

  2. Data Structures: Along with programming languages it is essential to become an expert regarding Data Structure Concepts as well. You are required to understand many data structures such as linked lists, hashing, graphs, binary trees, heap etc.

  3. Cryptography: It is necessary to learn about various Cryptographic concepts such as digital signatures, RSA algorithm and hash functions to begin your journey as a Blockchain Developer.

  4. Databases & Networking: It will enable you to understand the mechanism of distributed systems and other crucial concepts in the field of Blockchain Development.

Step 3. Know about Ethereum and decentralized application(DApps):

According to Wikipedia, Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, Ether is second only to Bitcoin in market capitalization. It is also useful for running smart protocols and permits developing smart contracts and Distributed Applications(dApps) eliminating issues such as fraud, downtime and third-party interference.

So, dApps or Decentralized Applications are the software systems developed on blockchain platforms such as Ethereum, etc.

Step 4. Study About Cryptonomics:

The word ‘Cryptonomics’ is generated by joining the two words – Cryptography & Economics. It is concerned regarding the process of understanding the economical concepts and methodologies behind the cryptocurrencies. Also learn difficult concepts such as transaction lifecycle using Bitcoin, mining and transaction fees.  Though cryptocurrency is a minor portion of the whole blockchain technology still you need to learn its mechanism to know the fundamentals of blockchain.

Step 5. Practical Experience:

You need to gather some practical experience in the field of Blockchain Development. It will help you to apply all your theoretical skills into the practical environment.  You can try to write smart contracts or develop your own dApps. You can also opt for internship or training sessions.

Thus, these above steps can be followed to become an efficient blockchain developer.

Top Blockchain Companies 2022 – Updated List

  1. ScienceSoft: This company offers end-to-end development of custom blockchain solutions, including smart contracts, private blockchain, blockchain wallets as well as dApps and DAOS. ScienceSoft also uses Ethereum, Graphene and Hyperledger. (Headquarter: McKinney, Texas)

  2. LeewayHertz: This is a blockchain company that specializes in building blockchain applications for startup and enterprises. This award-winning software development company was established in 2007 and it has produced many digital platforms on the cloud, mobile, blockchain and IoT.

It consists of software development, Hedra hash graph consulting, ICO and STO launch service. They are even expert in blockchain development on a different framework, dApps and smart contracts. (Headquarter: San Francisco, California, USA)

  1. Blockchangers: This Company was launched in 2015 for assisting clients understand and imply blockchain technology. They aim to promote blockchain through cooperation with private and public institutions to explain the future of blockchain.

Their services include lectures, workshops, consulting, blockchain development, banking software development, front-end services, etc. (Headquarter: Oslo, Norway).

  1. ChromaWay: This blockchain development company was established since 2014 to develop a blockchain platform that works with private and public sectors to build smart contracts and other decentralized blockchain applications for mostly real estate and financial industries.

Their primary service focus is on blockchain as a database, they introduced postchain, a distributed database management tool with distributed control. Other service consists of blockchain development, digital currencies, tokenization, consortium database, etc. (Headquarter: Stockholm, Sweden).

  1. OpenLedger: This blockchain company was established in 2014 by Ronny Boesing. Its services include blockchain development such as Graphene, Bitshare and HyperLedger.

ICO/ITO services such as ICO Escrow, ICO Advisory, ICO Tech Support, ICO Marketing and PR. (Headquarter: Denmark)

Hence, these above listed companies are the best five blockchain technology companies.

 Final Thoughts

The global blockchain technology market size is expected to be $1,431.54 billion by 2030, growing at a CAGR of 85.9% from 2022 to 2030, according to a report by Grand View Research.

Currently the number one blockchain company in the world right now is Coinbase Global Inc. (COIN), which has a revenue of 5.9 billion dollars and a net income of three billion dollars. With the growth and usage of blockchain technology in various industries it is sure that soon, decentralized blockchain systems may replace banking processes by providing quick and speedy transactions. Another reason behind is, its higher levels of security, lower fees rates and smart contracts.

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