Blockchain Technology Introduction Blockchain is a distributed ledger technology that ensures
secure, transparent, and tamper-proof transactions. Initially popularized by Bitcoin, blockchain’s
applications extend far beyond cryptocurrencies.
Background Proposed in 2008 by Satoshi Nakamoto as the underlying technology for Bitcoin,
blockchain utilizes cryptographic techniques to record transactions across decentralized nodes.
Unlike traditional centralized databases, blockchain ensures trust without intermediaries.
Key Concepts Each block contains transaction data, a timestamp, and a cryptographic hash linking
it to the previous block, ensuring immutability. Consensus mechanisms such as Proof-of-Work
(PoW) and Proof-of-Stake (PoS) validate transactions. Smart contracts enable self-executing
agreements without intermediaries.
Applications Blockchain is used in supply chain management to track provenance of goods, in
healthcare for secure patient data exchange, and in voting systems to ensure transparency.
Decentralized finance (DeFi) platforms offer lending and trading without traditional banks.
Challenges Scalability is a key limitation due to transaction throughput constraints. Regulatory
uncertainty and high energy consumption, particularly in PoW systems, pose additional challenges.
Future Scope Research is advancing towards energy-efficient consensus mechanisms,
interoperability among blockchains, and integration with IoT. Central Bank Digital Currencies
(CBDCs) represent a significant potential application.
Conclusion Blockchain technology offers revolutionary potential but requires continued innovation
and regulatory clarity to achieve mainstream adoption.
References - Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S. (2016). Bitcoin and
Cryptocurrency Technologies. Princeton University Press. - Swan, M. (2015). Blockchain: Blueprint
for a New Economy. O'Reilly Media.
