Blockchain Technology and Its Potential Applications

Abstract

Blockchain is essentially a decentralized framework and a transaction processing model governed by no central authority. As blockchain can be considered as a database for tracking changes similar to accounting ledger, it is often referred to as a distributed ledger. Each transaction is digitally signed as proof of authenticity, and the ledger is maintained so that once entries are added or amended, they cannot be deleted or modified by one party without detection of others. Thus, blockchain functions as an immutable ledger that enables decentralized transactions with the help of smart contracts and consensus algorithms. There are several other cryptocurrencies, such as Bitcoin, that are built on the blockchain. With BaaS (Blockchain as a Service), users can use cloud-based solutions to create, host, and manage their own blockchain applications and related tasks. Blockchain has numerous potential applications in a variety of industries such as healthcare, supply chain, logistics and much more. Identity management is one of the most promising opportunities which helps to authenticate one&s;s identity. Stellar (Blockchain based-platform) can be used for cross-border payments as it is an open source, decentralized protocol for transfer fiat currencies. Ecommerce platforms need a large volume of transactions on a scalable system and as Bitcoin cannot provide the same, a off-chain payment network Bitcoin Lightning Network is a solution to this problem. It provides fast transactions and can be used in any kind of Business or Financial Industry.