Introduction to Blockchain Technology

Block Chain technology is the backbone of crypto-currencies. Block Chain is the key behind Bitcoin and other alt-coins. As the name implies a blockchain is a chain of blocks, i.e., it is like a list of blocks forming a chain. A block contains the transaction information made between two parties. Blockchain technology solves many issues of the current system, some of which are as follows: 

1. Issues with the current banking system (Higher transaction fees):- Suppose Manas wants to transfer 100$ to Mayank's account. He should go through a trusted third party like a bank or some other financial agency. During the whole transaction, the bank may charge 2% i.e., 2$. This may look like a small amount but while transferring a big amount say 100000$ the fees will be 2000$ which is a very higher fee. As the blockchain is a public distributed ledger, we don't need to go for the third party which in turn will save fees.

2. Double-Spending:- Suppose Manas has 500$ in his account, but he initiates a transaction of 400$ to Mayank and 500$ to Shashank. This transaction should fail as it is not valid.

3. Net-frauds and Account hacking:- As this is a distributed ledger, and the whole transaction is hashed before it is stored in the blockchain there is less chance of frauds or account hacking.

Now Here's how the block chain solves these issues

1. De-centralized System:- The blockchain network is not a centralized network. There is no need for any third party which is centralized controlling it.

2. Public Ledgers :- The block chain technology is a public ledger means all the information is open to public with the transaction information. So, there is no such chance of double-spending.

3. Lower Transaction Fees :- There is a minimal transaction fees taken for each transaction which is very less as compared to the current banking system. Hence, the public does not need to pay a huge fees while performing any transaction.

Thus we see that blockchain offers advantages over the current centralized banking system and blockchain has also a huge scope in other fields as well.