What is Blockchain?

7 min readSep 21, 2021

What is a blockchain?

Blockchain is an online way of keeping a log of all transactions. Transactions include money transfers, purchases of goods and services, and even the sharing of information about products or services. Every time a blockchain is updated, all the users of the system need to update their copy of the blockchain alongside their local copies. The software supporting this feature is called a decentralized application (Dapp).

Also read; What is Decentralized App Development or DApps? A beginner’s guide

How does a blockchain work?

Blocks, nodes, and miners are the three key ideas of blockchain.

Every chain is made up of many blocks, each of which contains three fundamental elements:

The information contained in the block. A nonce is a 32-bit whole number. When a block is formed, a nonce is generated at random, which then creates a block header hash.

The hash is a 256-bit integer that is associated with the nonce. It has to begin with a large number of zeros (i.e., be extremely small).

A nonce creates the cryptographic hash when the first block of a chain is produced. Unless it is mined, the data in the block is regarded as signed and eternally linked to the nonce and hash.

Miners use a technique called mining to add new blocks to the chain.

Every block in a blockchain has its own unique nonce and hash, but it also refers to the hash of the preceding block in the chain, making mining a block difficult, particularly on big chains.

Miners utilise specialised software to solve the very difficult arithmetic issue of generating an approved hash using a nonce. Because the nonce is only 32 bits long and the hash is 256 bits long, there are about four billion nonce-hash combinations to mine before finding the proper one. Miners are considered to have discovered the “golden nonce” when this happens, and their block is added to the chain.

Making a modification to any block earlier in the chain necessitates re-mining not only the affected block, but all subsequent blocks as well. This is why manipulating blockchain technology is so tough. Consider it “safety in arithmetic,” because discovering golden nonces takes a long time and a lot of computer resources.

When a block is successfully mined, all nodes in the network acknowledge the change, and the miner is paid monetarily.

Nodes

Decentralization is one of the most significant principles in blockchain technology. The chain cannot be owned by a single computer or entity. Instead, the nodes connecting to the chain form a distributed ledger. Any type of electronic equipment that retains copies of the blockchain and keeps the network running is referred to as a node.

Every node has its own copy of the blockchain, and in order for the chain to be updated, trusted, and validated, the network must algorithmically approve every freshly mined block. Every action in the ledger can be easily reviewed and observed since blockchains are transparent. A unique alphanumeric identification number is assigned to each participant, which is used to track their transactions.

The blockchain’s integrity is maintained and users’ confidence is built by combining public data with a system of checks and balances. In a nutshell, blockchains are the scalability of trust through technology.

Unique features of Blockchain

1. Decentralized network

2. Transparency

3. Security

4. Ownership

5. Easily scalable

6. Mobility

Why is Blockchain so popular?

Blockchain is the most talked about technological innovation in recent memory. It has the potential to disrupt mainstream financial institutions, improve global financial inclusion and empower individuals to create social change through financial innovation. The technology behind blockchain is based on algorithms and cryptography which allows secure and efficient collection of digital files across a decentralized peer-to-peer network. These files include financial information such as income and expense accounts, as well as physical assets like cars, houses and even artworks.

Sectors where blockchain technology can be used;

FinTech

Blockchain technology has the potential to allow a new generation of financial services and empower individuals to get more efficient access to financial services. The potential for this technology is nearly infinite in a future where money is frequently created and transferred digitally.

Healthcare

In the healthcare sector, the potential of blockchain technology is clear. It holds the potential to help improve transparency and efficiency in a system which is struggling with cost recovery.

Cyber security

The sector where it’s most widely used today is cybersecurity, where it helps keep track of and secure data and transactions using cryptography. Since many financial institutions are vulnerable to cyberattacks, these firms are turning to blockchain technology in order to protect their data and ensure that there’s no way an outsider can access it.

Supply chain management

There are a lot of reasons why blockchain technology will eventually be adopted in supply chain management. First off, it reduces the chance of fraud and double spending. Many large retailers are starting to realize the benefits of implementing blockchain systems into their supply chains. For instance, smart commodities applications placed on blockchain allow a company to tracking every item on their site including inventory, ordering, shipping and receiving; all without needing a human to take action.

Business-to-business transaction platform

Blockchain technology can be used to build a business-to-business platform that reduces costs and increases efficiency. The benefit to a company of using blockchain technology for a transaction is to cut out the middleman, or middle-men between the buyer and the seller. Today, companies have to rely on a third-party such as a bank to verify the identity of buyers and banks check the identity of sellers. Using blockchain technology, there is no need for a third party and the seller can verify his identity directly with the blockchain network.

Tourism and hospitality sector

Blockchain technology can be applied in certain sectors, such as those that deal with tourism and hospitality. Visitors can be issued certificates of authenticity based on their identifying data provided by the Blockchain network. Hotel blockchains could be used to track the movements of individuals and authenticate their stays, similar to how airline and bus ticketing systems work today.

Blockchain technology has the potential to transform several sectors, including the tourism and hospitality industry. Global travel companies such as Expedia, WOW air, Starwood Hotels & Resorts, and Dollar General have all begun to adopt or plan to implement blockchain technology for their internal systems. These companies have realized the potential this technology brings to increase operational efficiency, reduce costs, and streamline processes.

Legal contracts and records management

There are many ways that blockchains can be applied to law. In particular, we are discussing how blockchain could be used to create entirely new types of legal contracts and records management systems using basically the same technology. This is by no means an exaggeration: the very same technology could be used to create completely new legal systems for countries with established legal systems, including the ability to transfer power over contracts from one individual or group of individuals to another with no change in the law.

How can you use blockchain for your business

At a time when the corporate world is driven by technology and is quickly evolving, it is critical to stay up with the pace and digitally change. Businesses frequently overlook the need of digitising both internal and external operations while conducting a digital transformation. It is frequently more important, and Blockchain does this in the most efficient manner imaginable.

The term “blockchain” has become a hot issue among business owners. The understanding of its true worth, on the other hand, continues to evade the majority. In simple terms, blockchain technology is a data-based ledger that can store and verify massive amounts of data. It ensures the safety of all commercial transactions.

Business thrives on data, and blockchain technology is your lifesaver. It gives companies access to a decentralised network that makes it simple to trace and track data. Regardless of your industry, Blockchain Technology will be a powerful and transformative tool for integrating corporate activities and establishing a transparent atmosphere that fosters development.

Why Idea Usher?

Idea Usher provides a diverse range of blockchain-related services. We take the time to get to know our clients, understand their needs, and provide them with end-to-end solutions.

Blockchain for private use

A private blockchain is more secure than a public blockchain. The ability to observe or make modifications is predefined. Idea Usher assesses your requirements and provides a comprehensive, tailored solution to help you grow your business.

Development of a Crypto Wallet

Cryptocurrency wallets are far safer, as they are trusted by many businesses and accepted as a payment method. It has been proven to be useful for all types of transactions and virtual storage. Customers may use it to make transactions and keep track of their own account balances. We can swiftly offer unique solutions and fulfil even the most complicated cryptocurrency needs because to our hands-on experience in wallet creation services.

E-commerce and Blockchain

The E-commerce industry is about to be transformed by blockchain technology. Pandemic has wreaked havoc on businesses in several ways. We provide e-commerce solutions to help you revitalise your business and maximise its potential. Take use of our e-commerce business solutions to create a mark in the digital world.

IoT Blockchain Development

Idea To automate corporate operations, Usher is combining blockchain technologies with the Internet of Things. We identify your issue and then provide customised solutions to resolve it. Our expertise lies in combining faultless blockchain networks with ideal IoT solutions to help you run a smarter organisation.

E-commerce and Blockchain

IoT Blockchain Development

Idea to automate corporate operations, Usher is combining blockchain technologies with the Internet of Things. We identify your issue and then provide customised solutions to resolve it. Our expertise lies in combining faultless blockchain networks with ideal IoT solutions to help you run a smarter organisation.