3 Essential Concepts You Need To Know Before You Start Using Blockchain Technology

Blockchain Technology tagged as the next stage of the internet comes with the immense potential to disrupt different sectors. As it relies on a decentralized, digitized and distributed ledger model, it offers more robust and secure opportunity to work on. By now we all know, that blockchain simplifies the direct transfer, however, before you start venturing into blockchain application development you need to know the top 3 concepts of blockchain technology.

1. Smart Contracts

The term ‘Smart Contract’ was first utilized by a Computer researcher and a cryptographer name Nick Szabo. It is now gaining huge popularity because of its capability to automatically perform tasks. It is basically software codes written by developers and deployed onto a blockchain to automate the execution of business logic and agreements.

Being a cryptographically unique asset, smart contracts can be created, traded and settled in real time by users on the network without the intervention of any third-party. Be it for banking & insurance or hospitality sector, this self-operating program smart contract works accurately offering a successful business process.

Know here: Top 5 sectors where Smart Contracts can be applied successfully

Source: cryptosbeginner.com

Why is Smart Contract creating so much buzz?  

Have you ever thought of eliminating the third party from your business agreement? This is the time to use smart contracts. What can be better than a trusted platform working automatically with all your commands eliminating any third-party intervention and ensuring optimal security?

• Transparency: Smart contracts take out the middlemen in contract construction, execution, and enforcement. It provides greater transparency by doing so.
• Accuracy: The software codes enforce contracts automatically with great accuracy. This also makes the process unbiased and trustable.
• Speed: Smart contracts support long documentation and process work with great speed.  
• Reliable and secure: All the documents are stored inside cryptographically protected blocks which makes it reliable and secure.

2. Public and Private and Consortium Blockchain

Yes, there are three types of blockchain Public, Private, and Consortium. Keeping in mind the business process, you can select any of these for your blockchain based application development.

Public blockchain is completely decentralized and comes with permission to read and write information onto the blockchain. It is shared equally by all connected users in the network who come to an agreement before any information is stored on the database. Bitcoin is one of the most popular examples of a public blockchain.

Private blockchain is typically used within an organization and controlled by the management. It allows few users to access, make changes and carry out transactions. The rules and regulations are set by individual organization according to their business process.

Consortium is kind of a hybrid model where few selected parties get the authority to ensure collaborative business transformation among organizations. It permits a limited number of users to participate in the consensus process.

3. Storing record

Another interesting concept is that blockchain not only stores record of the past but also what should happen in the future. This is a great concept to welcome for any organization, recently, the Ethereum Foundation is using blockchain technology to store and process smart contracts. This storing of record and transferring digital currency is a remarkable case. Besides, the immutability of the data is guaranteed in which they are stored.

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