WHAT IS BLOCKCHAIN?
Blockchain is a distributed ledger of a collection of blocks, where different data are stored. In a blockchain system, any type of data can be stored and managed. Usually, Blockchain is used in the Financial technology area.
In other words, a Blockchain is a Collection of records, that are linked with others, and strongly resistant to alteration.
That means in a blockchain a collection of interrelated data is stored, which is nearly impossible to hack, edit, or delete.
Diagram of Blockchain:
Data: Here data refers to the name, amount, and time of any transactions. Each block has a different data set than the others.
Hash: Hash refers to a set of unique alphabet and numbers, each hash of any block must be identical. And each block has two hashes, the first one for this block and the second one from the previous block. It is impossible to alter those hash, Because you can at best alter one block hash but not the next one.
Previous Hash: This hash comes from previous block. Means all the data of previous block will store in current block.
How Blockchain Works:
Everyone has two keys, a Public key, and a private key. Think of a situation Putin wants to send 1m bitcoin to Kim Jhon Un. President Putin does know Kim’s public key. He sends 1 million bitcoin with this public key. When Kim enters his private key which looks like a password he knows who donate him 1 million bitcoin.
In any blockchain network, everyone knows or stores everyone’s public key which works like an email address. Privet key works like a password.
The purpose of Blockchain in the fintech industry:
In the fintech industry blockchain is used in every part, from cryptocurrency to peer-to-peer lending blockchain works everywhere. From my experience in blockchain engineering
I can assure you, that you will be way more advanced than any other competitors if you invest in blockchain technology.
From the top of an industry insider, one dollar investing in blockchain will return 53 USD in the future.
Major areas covered by blockchain:
- Cryptocurrency
- Defi
- CBDC
- Exchange market
- NFT
CRYPTOCURRENCY:
2000+ cryptocurrencies are treading in the market, All of those cryptocurrencies are based on blockchain. The correlation between blockchain and crypto is very close. Satoshi invented blockchain in 2007 and cryptocurrency (Bitcoin) started in 2008 based on blockchain.
Today’s top Blockchain developer works on the cryptocurrency network.
Top 5 cryptocurrencies based on Blockchain:
- Bitcoin
- Etherium
- Solana
- Avalance
- Cosmos
Defi (decentralized finance):
Decentralized finance and Blockchain domains are growing day by day as people are not interested in traditional ways of payments. Defi and blockchain makes a storm in the financial industry in recent days.
Big tech firms to small startups all are trying to introduce new defi projects with competitive features. If you are a crypto investor or a newbie to learning this sector you are interested in knowing about defi, before learning defi you must know about the basics of Blockchain.
Here I mention the top 5 Defi projects till today:
- Colony lab
- Aave
- PancakeSwap
- Fantom
- The Graph
CBDC (Central Bank Digital Currency):
With the mushrooming of cryptocurrency and the defi project, central banks of countries try to come up with new ideas such as Central Bank Digital Currencies. Already 105 countries take projects for the development of CBDCs. Among them, 50 reach an advanced level with CBDC.
Of the, 10 countries in the final steps of declaring CBDC. China plans to declare CBDC in 2023. All those projects are based on Blockchain.
Top 5 countries in advancing with CBDC:
- China
- India
- South Korea
- Russia
- Japan
By showing this list if you think only Eastern countries are interested in CBDC, there is bad news 17 EU members take the CBDC project as well.
Exchange Market and Blockchain:
If you are a regular crypto trader or a newbie in the crypto space, All most all the crypto markets are based on Blockchain. They maintain strong security with blockchain technology.
Here is the top 5 cryptocurrency exchange market:
- Binance
- FXT
- Kucoin
- Coinbase
- Gate.io
NFT:
We all know not as a real-world creative asset that is traded online. NFT may vary from ART, books, or Songs, to someone’s tweets. All the major company is introducing NFT nowadays. Nike, Adidas, Coca-cola, and Pepsi all release different types of NFTs in different forms.
Currently, the total market size of NFT space is 30 billion USD. Hope it will be 100 billion within the next two years.
All those NFT market palaces are based on Blockchain. Here we mention the top 5 NFT market palaces:
- Opensea
- Axie Marketplace
- NBA Marketplace
- Larva Labs
- Foundation
Conclusion:
The world is adopting Blockchain at a massive speed, if you are a fintech enthusiast or a learner of crypto you must be kept up with blockchain. Everyone in this field might not need to be a developer of Blockchain but you must have a basic level understanding of blockchain technology, how this work, and the use case and the core purpose of using blockchain in the fintech industry.
Lucky 07 FAQ about Blockchain Use/ Purpose:
- what is the main use case of blockchain?
Answer: The main use case of blockchain is to store data in a predefined way so that all previous and future data are stored with 120% security and transparent way so that no one can hack or alter those data.
2. Who is using blockchain today?
Answer: Almost all big firms, governments, and big tech firms use blockchain. But as a frontline banking and finance industry use blockchain mostly. From Wall mart to ant pay all use blockchain technology.
3. Which blockchain-based crypto is the best?
Answer: Ethereum is so far the best blockchain-based platform.
4. What are the 4 types of blockchain?
Answer: There are 4 types of blockchain: Public Blockchain, Private Blockchain, Hybrid Blockchain, Consortium Blockchain.
5. What coding language is used in blockchain?
Answer: You can use any programming language to develop a blockchain. We mostly use Python, c++, Javascript in Blockchain technology.
6. Can I learn blockchain without coding?
Answer: You may learn the basics of blockchain without knowing to code, but without knowing coding you cannot learn blockchain.
7. Can blockchain be hacked?
Answer: It is nearly impossible to hack, or altered the Blockchain. But as humans are involved in this process, For any manpower fault may be hacked.
