Application of blockchain

                       

In previous blog we got to know about the concept of blockchain. Let us know understand how each block is added to this chain. The process of adding each block is called proof- of- work or PoW. It is the original consensus algorithm in the Block chain network. This algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transaction on the network and getting rewarded.In the network, users send each other digital tokens. A decentralized ledger gathers all the transaction into blocks. However care should be taken to confirm the transaction and arrange blocks. This responsibility bears on special nodes called miners and process is called mining.
               

Along with Bitcoin and cryptocurrency blockchain has many more applications. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors.

1. Smart Contract
Smart contracts perform similar functions as paper-based agreements. The differentiating factor about smart contracts is that these are digital as well as self-executable in nature. Self-executable meaning that when certain conditions in the code of these contracts are met, they are automatically deployed. Smart contracts can be used for different situations or industries such as financial agreements, health insurances, real estate property documents, crowdfunding etc.Ethereum, an open source blockchain platform has introduced smart contracts in the Blockchain ecosystem.

2. Financial Services
Major portions of the financial industry are implementing distributed ledgers for use in banking, and according to a September 2016 IBM study, this is occurring faster than expected. Banks are interested in this technology because it has potential to speed up backup office settlement systems. Banks such as UBS are opening new research labs dedicated to blockchain technology in order to explore how blockchain can be used in financial services to increase efficiency and reduce costs.The blockchain has also given rise to Initial coin offerings (ICOs) as well as a new category of digital asset called Security Token Offerings (STOs), also sometimes referred to as Digital Security Offerings (DSOs).

3. Supply Chain
There are a number of efforts and industry organizations working to employ blockchains in supply chain logistics and supply chain management. Everledger is one of the inaugural clients of IBM's blockchain-based tracking service. Wal-Mart and IBM are running a trial to use a blockchain-backed system for supply chain monitoring — all nodes of the blockchain are administered by Walmart and are located on the IBM cloud. Hyperledger grid develops open components for blockchain supply chain solutions