Hello everybody catch this interesting weekly series on blockchain.
I suppose that now everybody knows what is the increasing traction that the industry shows towards blockchains. Lets clear certain essential things before we jump into the blockchains in detail. Most of your thoughts by now must have ended up with the idea that I am going to speak about Bitcoins. Please!!!! I am not here to illustrate how to invest or double your money using bitcoins. Okay few of you are thinking the other way I know you will certainly know that I am going to say Blockchains are not Bitcoins. Cheers to you!!! You guys are absolutely right. For kind notice of everybody Bitcoin is the familiar application of blockchains. There are several other applications too. Livestock management, Land Registry, Cashless transactions, Supply chain management and so on. Oh guys you have noticed it right. Yeah all these applications have one thing in common. Cmon its maintaining transactional records through ledgers.
I suppose few of you out of interest must have googled a long night to gain some knowledge about blockchains. You all know who the founder is its none other than Mr. Satoshi Nakamoto (not any Japanese guy that comes to your mind). Kudos to you if you really know him in person (just kidding its an anonymous identity).
Credits : rubygarage.org
Immutability in Blockchains
The very first things you must have come to know about what blockchains help should essentially be their immutability property. Yes you cracked the nuts the CRUD operations cant be performed as in a conventional database. You guys may ask what is so beneficial about the immutability why do I bother about the database that is maintained by the service provider. Lets suppose your service provider server goes a potential breach how can we ensure the integrity and confidentiality of your personal data is maintained as if the service provider promised you in the incipient. Don’t think about those deemed industries that obtain your data with your consent haha!
Credits : Max Kops
The next thing that you guys must have heard about is that blockchains are decentralized ledgers.
Kudos to you if you know this. (Don’t read this paragraph have a cup of tea).
For those guys who didn’t know what a decentralized ledger means to be. Let us assume that you are owner of an MNC ( back to reality no dreams!!). You have only one auditor who maintains your whole account. That auditor says you have spent a million for November. Your very own intellectual mind says no 9 lakhs. Poor boy you cant do anything, trapped!!!. So the scenario covers the cruel intention behind why the world made us to maintain centralized ledgers.
Lets get our hands dirty and break the rules. Time to change to decentralized ledgers.
Simply apply it to the above scenario got it right? Every employee in your MNC knows what you have spent. No cheating!! Ensured. Unless you cut off everybody’s pay. ( After this MBA aspirants should acknowledge what it means to be a CEO haha just joking.)
Credits: CB Insights
The very next thing that I wanted to clear is most of you rougly now acknowledge blockchains as linked lists. Thanks to all the graphical images that make you think so and certain people who must have told you this delete their contacts please!!!. Blockchains may seem like linked lists. But the truth is they aren’t. They are a very different data structures on their own. Let me introduce two important data structures that constitute the blockchains. Easy !!! Merkle trees and Patricia trees. Remember this is not a DS lecture please don’t expect more here. Stay tuned for upcoming weeks to know more on these.
We got rougly an idea about how blockchains are familiarly known to the least.
(Story time) Remember blockchains the name is new but the technology isn’t.
You may think now that I am gone mad speaking like this. Give me a chance let me prove.
The idea of maintaining these decentralized ledgers for the sake of immutability originated from the people in the Island of YAP (in 500 A.D.). These Yapese people used a very unique form of currency don’t imagine Gold, Diamond, Platinum or Ruby. (You guys are very creative, Make some time yourself to make creative movies) Just stones, they called it the Rai stone.
The speciality that these stones differed from the normal stones with which we beat the stray dogs (don’t do that please) are they are not easy to lift up unless you are Mark Henry. They weighed around 200 kg. Why are these considered as currency. So simple they are the most secured because nobody can steal it. These stones are partitioned to everybody in the island in equal proportions. Each adult who wanted to trade this currency and buy something has to keep a mental ledger themselves. Additionally everybody else in the Island is also informed of this trade. Very easily they maintained trade ledgers as everybody knew about the asset of everybody else. Even without the physical presence of the stone the trade was acknowledged because the idea is to maintain a decentralized ledger and not the stone that weighs 200kg.
After this story I suppose you learnt atleast one new interesting thing about blockchains. Stay tuned and subscribe to us for updates on this weekly.