On Blockchain: The next big tech revolution

ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 18th June. Click Here for more information.

News: Blockchain technology will be the next big tech revolution.

What is blockchain technology?

A blockchain is a digital ledger that allows parties to transact without a central authority as a trusted intermediary.

Blockchain is not a new technology. Rather, it is an innovative way of using existing technologies.

The technologies underpinning blockchain are asymmetric key encryption, hash values, Merkle trees, and peer-to-peer networks.

How the blockchain technology works?

A blockchain is a digital ledger, in this ledger, transactions are grouped together in blocks, which are cryptographically chained together in a way that is tamper-proof and creates a mathematically indisputable history.

The development and maintenance of blockchain are open, distributed, and shared. A team of volunteers around the world maintains the core software for blockchain

Why the blockchain technology is so promising?

“Smart Contracts” is the revolution that blockchain will bring. It will permit trusted transactions and agreements to be carried out among any two parties without the need for a central authority, legal system, or external enforcement mechanism.

It has the following benefits,

it makes transaction very quick.

For more benefits and advantages of Blockchain: Read here

Why blockchain and its related technologies are looked at with deep suspicion?

Firstly, the use of algorithms to establish the validity of the transaction is viewed with suspicion.

Secondly, Part of the reason why blockchain and its related technologies are looked at with deep suspicion is the story about its origins. The development of ‘Bitcoins/ digital cryptocurrency’ had contributed to the mystery of blockchain.

Source: This post is based on the article “The next big tech revolution” published in Business Standard on 6th Dec 2021.

Print Friendly and PDF
Blog
Academy
Community