What Is Blockchain Technology? In Simple Words.

• Introduction

In order to understand what is blockchain technology, we must first gain a little insight into data security and encryption. We must very well understand that data security and privacy is our fundamental right. Even the Supreme Court of India has declared the right to privacy as a fundamental right. Blockchain technology works to safeguard our privacy and data online. Let us try to understand what is blockchain technology and how does it function.

• What is blockchain technology in simple words?

The answer to what is blockchain technology lies in its fundamental architecture where the data is stored in the form of blocks. Here each block is encrypted through the private key and public key mechanism. The data within the blockchain can be decoded only by the usage of the private key. what does chain stand for in the word blockchain? It simply refers that when a particular block of data is encrypted, the additional data is inserted in it, connecting it to its previous block through the encryption mechanism. In simple words, whenever a new block of data is formed it considers all of its previous blocks of data, in generating the next public and private keys.

• What is blockchain technology and decentralization?

It must be noted that this block of data known as blockchain is distributed to all the nodes in the network. In this manner when someone tries to change the data in the blockchain, 50% of the total number of nodes must agree to it, otherwise, the change in the blockchain cannot be implemented by a node. This is the most crucial point, as decentralization increases the security of the blockchain. For a particular change to be implemented, a consensus among the nodes would be required.

• What is blockchain technology and how is it used in other innovative ways?

Blockchain technology has found significant applications in supply chain management, HR industry, and other popular domains as well. In supply chain management, the data pertaining to the goods are stored on the blockchain and constantly updated as it reaches various stakeholders. In this way, the goods can be tracked in a very undisputed and a transparent way. The information about the various academic and industry experience of a particular candidate can be stored on the blockchain. By doing this, reliability is increased as the tempered data cannot be stored on the blockchain. I hope the answer to "What is blockchain technology?" in the current domain has been dealt with.