Last Updated: 23 Feb 2021 | 10 min read
A blockchain is nothing more than a digital ledger verifiable by all. It remains distributed universally through a network of devices. The most notable thing about blockchain is that there’s no need for a central authority to intervene and include new transactions. The ledger’s circulated nature makes it perfectly secure. Then again, anyone holding the key to the blockchain can introduce specific changes. So, does this feature make blockchain a boon or a bane? That’s the real question, and this topic aims to unearth it.
The deal with open code is growing popular among techies by the second, but it isn’t entirely free from risks. It does allow people to make changes or edit something with ease, but it also provides this privilege to just about everyone. As a result, the possibilities of benign mistakes and malicious threats always remain. That’s why many people, especially cryptology experts, are turning their attention towards blockchain consulting services and solutions.
In the field of cryptology, a blockchain is like a list of records that remain linked together, where each record is a “block” in the “chain.” Every block has a timestamp or a “hash” of the previous block and transaction-related data. While it typically resembles a Merkle tree, a blockchain app development company can use other forms. Sometimes, experts also refer to it as Distributed Ledger Technology or DLT.
Understanding the intricacies of blockchain is quite easy when explained theoretically. However, a shroud of mystery keeps the history of blockchain under wraps. The whole thing began when Satoshi Nakamoto published an essay titled “Bitcoin: A Peer to Peer Electronic Cash System” back in 2008. Does it sound simple up until now? If you continue reading, you’ll realize that it isn’t as straightforward as you think. The name mentioned above is a pseudonym used by one or more individuals. In 2009, the very first successful Bitcoin transfer took place between the so-called Nakamoto and Hal Finney. Then, three years later, an extremely popular show called “The Good Wife” mentioned Bitcoin and blockchain as an extension several times. However, despite being a relatively familiar concept, not many people understood what it was.
So, what does a blockchain app development company do, and how do blockchains work? Anyone with access to a blockchain can check its history, but it’s incredibly difficult for that person to modify it. No one can manipulate any piece of information already recorded in the chain without tampering with the other blocks. This feature makes a blockchain entirely resistant to tampering. While it may not be entirely impossible to mess with, cracking the hash in each block is immeasurably tricky.
Whenever someone creates a new block for a chain, a “miner” has to use unique software programs to find a nonce that can generate a satisfactory hash. Using software programs is mandatory as the mathematical problem associated with finding the nonce can be highly complicated. While it’s already time-consuming, a nonce has only 32 bits. A hash, on the other hand, has 256 bits. It means that you have to deal with almost four billion combinations! There’s only one nonce that you can use for a block in an application created by a blockchain app development company.
Additionally, the design of each block in a chain makes them obedient towards a specific protocol only. If you execute another, the blockchain won’t follow the command. Cryptologists are in love with both factors. Why else would anyone hire a cryptologist if not to create codes that no one can crack? As long as it resists every kind of modification, it’s a boon. Today, however, many other professions are integrating blockchains into their systems.
As already mentioned above, many other industries are using blockchain at the moment, and one of them is the Ethereum Project. The main idea behind it is to lay the foundation of a place where specialists can use blockchains to usher humanity into a new era of the internet. By using Ethereum, users can utilize their data without worrying about it ending in the hands of various companies or app developers. Ethereum aims to build a unique version of the internet with inbuilt payments. It will be like a neutral playing field where no individual or company will hold the reins. Basically, anyone can write code and gain access to it from anywhere in the world, but no one can alter the other person’s work.
There’s another company worth mentioning called Factom. Based in Austin, Texas, this company is using blockchain for two services: dLoc and Factom Harmony. The latter is an easy-to-use ledger system that converts several documents into one platform. As a result, users of this system get to reduce their expenses and auditing times. The former, on the other hand, is perfect for folks in search of a secure system for confidential documents, such as birth certificates or property deeds. dLoc uses blockchain encryption capabilities to provide security to your information by keeping in under layers of verification and authentication controlled by you.
Interestingly enough, logistics organizations are also opting for blockchain consulting services and solutions. It’s a rapidly growing industry that had to put up with destructive losses in the past from theft, shipment misplacements, and unnecessary middlemen. By using the public ledger tech developed by Factom Harmony, logistics business owners can negate most of these issues. As everybody will have access to the document and shipment history, it will get easier to detect missing or stolen products earlier. Furthermore, it’s next to impossible to tamper with the history of the ledger. Naturally, finding a vanished product becomes a piece of cake. Whenever everyone gets access to the ledger, no one has to make telephone calls to gather information.
Blockchain tech can change the world of the web profoundly. There was a time when putting classified information on the internet used to be a risky move. Today, with blockchain, the data remains safer on the internet than in an underground vault, theoretically, of course. Blockchain can even make it easier to spot liars and scam artists. Once this technology removes perpetrators from the picture, only honest folks remain. Understandably, it bolsters the overall security standard. Only financial institutions and cryptology experts are using blockchain at the moment, but it can serve many other industries. Industrialists only need to find out how to put blockchain to use in their field.