Blockchain Technology: Have you ever wondered there can be a solution to fake certificates, fake experience, corruption and many other things where Trust is at the center? There is this revolutionary technology called Blockchain which aims to solve the problem of Trust.
So what exactly is Blockchain
A decentralised computation and information sharing platform that enables multiple authoritative domains, who do not trust each other, to cooperate, coordinate and collaborate in a rational decision making process.
Today, users don’t have much option but to trust a centralized authority whether its our Bank, University, Social Media Platform,etc. Can the future be decentralized where every user can control his data, where companies can trust the certificates and experience of a particular candidate. Blockchain promises to solve some of the issues stated above.
Money is which all of us understand. Let’s take a very simple , high level example from finance world to understand how Blockchain solves the problem of Trust.
- I had Rs.100 Physical note, I give it to say Mr.A. Now I have Zero and Mr.A has Rs.100.
- Now suppose same transfer I am doing using Digital code(a.k.a Note). It’s very easy to duplicate the Digital Note by either me and / or Mr.A. I or Mr.A can create multiple copies and we can send the same Digital Note to multiple people.
- This is called the Double-Spending problem.
- To solve this problem we need to track it. We need an accounting book to track it, usually called ledger.
- Now we need to make someone to take charge of the Ledger.Handing the ledger to a single person could again led to Manipulation.
- Solution is to give ledger to everyone. All transactions that have ever happen will be recorded so there is no chance of manipulation or duplication.Because it’s a public ledger, I don’t need third-party to make sure I didn’t cheat, or make extra copies for myself, or send digital notes twice, or thrice.
- People can therefore trade with peace of mind,that it’s not fake or duplicate.
Coming Back to our fake Certificate discussion at the start, suppose hash created using a cryptographic algorithm of our education certificate is stored in a decentralized fashion. It will be impossible for anyone to create a Fake Certificate or manipulate it in any ways. Since a slight change will alter the hash value completely and will be easily caught.
Blockchain is here to stay and in coming future it is going to transform the world as Internet did in 90’s. Do share your thoughts and connect with me.