Who knew that a single idea thought in 1991 and implemented almost 2 decades later could
revolutionise the world. A simple yet complicated chain of commands has led to the emergence of a
currency nearly impossible to hack. This information is left free and does not operate by any
authorised community or central organisation resulting in full transparency giving security to all
At some point in your life, you might have heard about the word ‘Cryptocurrency’. A virtual
currency formed in 1991 which records all your transactions in the form of a blockchain and allows
the movement of different purchases without keeping an actual balance.
All the cryptocurrencies in the world such as bitcoin, ethereum or ripple work are based on
blockchain. Once you understand the blockchain development process, the whole concept will be
transparent. This has surely changed the way mankind used to transact among themselves and this
journey of a decade is unprecedented.
Let’s check out some key features to understand better:
What is Blockchain
If you are somewhat related to this concept or have researched this currency for personal uses, this
term has crossed your way.
Blockchain, as the name suggests, is a chain of blocks. This statement seems simple which is not
the case. When we talk about the words ‘block’ and ‘chain’ it means information which is stored in
the form of blocks and is carried or connected by chains. These blocks contain small pieces of
information which are connected by chains and held together.
Blockchain can also be defined as a ledger which holds all the relevant information of transactions.
Whether the transaction is done through bitcoin, ethereum or any other virtual currency. Blockchain
holds the record of every currency through which transactions can take place. Since a lot of
information is carried through this platform each block has designated a hash through which every
block is identified. Each block has its unique hash which makes it different from others.
How does Blockchain work
Blockchain application includes one of the most complex mathematical equations. Blockchain
holds all the confidential information and is one of the most well-maintained systems of this
generation. There exist a lot of complicated scenarios in working of this system, but let’s simply
• Once a transaction is made by an individual, the transfer of possession of coins(say bitcoin)
is initiated. This transaction needs to be updated on the blockchain to make it more protected
• This authorisation of the transaction is done by miners. Mining can be defined as a process
where miners use heavy computer software and run a complicated mathematical problem
generated with the help of hashes.
• Miners update and authorise each transaction before adding it on the blockchain indicating it
to be completely safe and secure. Once transactions are successfully checked and verified,
they get added in the form of blocks and constitute a part of the blockchain.
Benefits of Blockchain
Blockchain is used by millions of people worldwide. As a result, it attracts a ton of traffic. Since so
many clients are part of this daily, it might have some benefits which are not fulfilled by any other
platform. Below-listed is some of the major benefits:
• Safe and Secure Network: Blockchain is considered to be one of the most secure networks
for any transaction to take place. Since the data has been verified by a network of computers
it makes it nearly impossible to get the hack. Whenever any block gets added to the chain,
the copy of it gets recognised in every single computer which is trying its hand on solving
equations. Since the backups are in such a large number, hacking any one computer won’t
help at all.
• No intermediaries: This is one of the best Blockchain application tools. Since there are so
many networks connected there exist only smart contracts. Smart contracts mean all the
digital contracts which can be used as a platform to run any application. These contracts are
not authorised by the department and hence are independent. These contracts work along
with some certified terms and conditions and run on their own. Late fees, scheduling
payments and stolen information are some of the obstacles which are removed by this
• Speed and Efficiency: There is no doubt that Blockchain is extremely efficient. Since there
are no third parties involved all the information gets transferred through verified sources and
in just a matter of time. A normal stock exchange might take 5-6 days to complete the
transaction due to heavy paperwork and formalities but these barriers do not come in
blockchain and exchanges can take place instantly.
Application of Blockchain
Blockchain cannot be used to perform a specific activity. In simple words, blockchain is very much
similar to the Internet. The internet nowadays is used for messaging, gaming, contacts etc.
Similarly, Blockchain is used for several functions. The blockchain development process will go
forever and yes all these functions are used worldwide.
• Cryptocurrency: This is the primary aim for which blockchain came into existence. Over
time cryptocurrency has now become a standard mode of payment and can now be used in
restaurants and clubs. This has certainly revolutionised the payment method. and can even
be used to buy your Amazon products. Cryptocurrencies like bitcoin, litecoin, ether and
ripple are often used to transact goods and services.