I have been listening about Blockchain, cryptocurrencies and Bitcoins for quite some time and always wondered what these were exactly. I read some articles and then more, but was never fully convinced, I could not find the basic concepts. Having an increasing interest day by day, I started reading about blockchain from the basics since I knew blockchain was the root of all the chaos that my mind was making.
Well, my mom always said you should have a habit of writing whatever you learn so that you remember the same, well, I followed the same here and then later realized it could be of help to many people who want to know more about blockchain. To be frank, blockchain is not just cryptocurrency, but it’s a larger concept which can be used in several industries and can definitely make our lives different.
Learning Blockchain basics:
Blockchain is a ledger that is shared among all the entities that are involved in the transaction thus making it easier to track and process them. One can track the processes like home buying, car purchasing and manufacturing, food processing, food manufacturing, agricultural processes, and even the operational flow of the companies, banks, filing process of patents, online purchasing of goods etc.
Blockchain has applications in areas as wide as you can think. It’s a technology that streamlines the operational workflow of any industry. In short, blockchain can be used to track and transaction or movement of goods and services and helps in easier processing with the shared and transparent ledger.
The above image is from Propy whitepaper series which has explained how the blockchain concept is used in the Real Estate industry. So if you follow the above image step by step, there is a shared ledger that is managed by Propy in this case which allows transparency of each and every step of house buying and selling.
A buyer submits an offer to purchase a particular property to Propy blockchain ledger; it creates a ticket of the same and notifies the seller. If the seller accepts the ticket and allows the further process, another ticket will be raised that will include the intermediaries (loan services, CIBIL score services, lawyers, agents etc.).
This is followed by all the intermediaries carrying put their actions and updating the Propy system and as the process is completed, the payment which is in the form of cryptocurrency flows from buyer to the seller. As the cryptocurrency is transferred, the property is immediately transferred to the buyer’s name and updated on the ledger.
One may ask a question here the use of cryptocurrency.
Cryptocurrency is a digital currency that makes any transaction easier and transparent over the internet. Traditionally money is managed by central banks of each of the countries and is to be printed and also follows several restrictions over online transactions. Digital currency which is known as cryptocurrency is managed by people and computer networks. There is no printing in any form involved and thus there are no major restrictions.
Using digital currency for any kind of monetary exchange over a network of blockchain makes it safe since all the involved stakeholders have the knowledge of the movement of currency and it’s completely transparent. In fact, even if there is a wrong transaction, all the involved stakeholders will get to know of it and it will be recorded, there is no way to correct it. However, if there is mutual agreement among the parties, the wrong transaction can be undone by initiating another back transaction of the same value and both the transactions will be recorded in the shared ledger.
The whole process being digital is fast and secure, unlike traditional transaction workflow.
Is Blockchain a new concept?
In a way yes and in a way no. There are several companies across the world that have adopted blockchain as their foundation for their relevant industry. On the other hand, it’s not a concept that is accepted without any suspicion. It’s a new concept in a way that it is yet to be adopted on a wider scale.
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