I have 4+ experience and working as software Engineer with Hytech professionals India PVT ltd and also working as Consultant,Trainer,Blogger and Author on Microsoft technologies,Also I have Trained more than 500+ IT professionals.I have knowledge about Asp.net,C#,SQL,Project management,replication,MVC,WebApi,SSRS,PostMan,TFS,SVN,Swagger,WMI,Agile,SignalR,Angularjs,IIS configuration.

What is blockchain and what are some applications of blockchain?

What is blockchain and what are some applications of blockchain?

First, what is blockchain and how it differs from bitcoin?

Blockchain is the technology behind bitcoin, ether, and most other cryptocurrencies. Bitcoin is merely just one application of Blockchain and in this article we will explore the many other applications of blockchain.
Blockchain is essentially a way of keeping records and can be used in almost any product that uses some sort of record keeping or database management. Blockchain is great for protecting any data that needs to be tamper-resistant, and indestructible.
Traditionally, data is kept in a server which is owned and operated by a third party company. This has some disadvantages: A 3rd party has access to your data, it might be destructed, it might be tampered, and it might be leaked. Using blockchain, the data is encrypted and then spread in a distributed network of computers. This way, it is not owned by anyone, it cannot be destructed, and it cannot be tampered with.

A block of data is a permanently recorded set of data, such as a financial transaction. The data is first hashed, which is a way a representing the data in a compact format where it could be easily compared for any changes. Any small changes in the data completely changes the hashed version which makes comparison super easy. Then the hashed data is encrypted. A private key allows the producer of the data to encrypt the data and serves as a digital signature whereas a public key allows everybody else with the key to decrypt it.
Then the blocks of data are connected to each other (chained). The unique thing is that each block not only contains its own data, but also the hashed version of the data of the previous block in the chain. This means that changing data of a single block would break a chain and the tampering would become evident.
Imagine a hacker with high computing power who controls a critically high number of the nodes in the network. This way, the hacker is able to change the data in subsequent nodes and tamper the data. Blockchain has one extra layer of security which comes from the genius of its mythical inventor, Satoshi Nakamoto. For each new block to be added to the chain, it needs to be verified. This verification process is extremely computationally heavy and therefore the cost of taking over a large proportion of a blockchain outweighs any possible benefits.

What are some blockchain applications? What type of blockchain-based startups can exist?

Blockchain is still in its infancy and is going through a technology maturation period similar to many other technologies. We can compare this to the evolution of TCP/IP protocols into the World Wide Web, into static websites and then to Web Apps.
I will categorize the blockchain companies into infrastructural (I), application-level (A), and ecosystem level (E). There needs to be many infrastructure level companies who provide the backend and APIs to other companies who build applications based on blockchain. There will also be ecosystem level companies which will serve the companies in the blockchain industry (e.g. news outlets, consultancies, analytics software, etc).
Below I summarize the various types of companies which can be based on blockchain. Obviously, this is not an inclusive list, so please comment the other types of companies that you know or can think of.
I also made the use cases that I think are promising and most useful, Italic.
Financial Services — Consumer
  1. International Transfer (A)
  2. P2P Payments (A)
  3. Microfinance (A)
  4. Peer-lending (A)
  5. Investment (e.g. ICO) (A)
  6. Micro Charity (A)
  7. Escrows (A)
  8. Smart Contracts (programmable, self executing and self-enforcing contracts (A)
Financial Services — Enterprise
  1. Investment Bank Smart Contracts (fast transaction settlement) (A)
  2. Trades (connecting NASDAQ to Bank of America on blockchain) (I)
  3. Audits (A)
  4. Anti-money laundering (A)
  5. Underwriting and Know your Customer (A)
  6. Insurance (A)
Non-Financial Services — Government to Citizens
  1. Records Management (e.g. titles, deeds, etc.) (A)
  2. Identity Verification and Issuance (A)
  3. Transparent, low-cost Voting (A)
  4. Tax collection/disputes, etc (A)
  5. Government Transparency (A)
  6. Regulatory Oversight (A)
  7. Permits (e.g. Gun) (A)
  8. Smart Contracts (A)
  9. Wills/Trusts (A)
  10. Patents/Copyrights (A)
  11. Clinical Trial data integrity (A)
  12. Illegal fishing, etc (A)
Non-Financial Services — Enterprise
  1. Supply Chain Management (A)
  2. Health Care and medical record sharing (A)
  3. Media Distribution (A)
  4. E-commerce with no middleman (A)
  5. Sharing economy with no central authority(A)
  6. Authenticated News Sharing/Data Sharing (A)
  7. Collaboration between companies knowing who owns what (A)
  8. Data Sharing Between companies (A)
Non-Financial Services — Consumer
  1. Energy Management (Selling/Buying to/from grid P2P) (A)
  2. Authenticated certificates/grades/degrees (A)
  3. Secure Medical Records and Genome Records (A)
  4. Secure Accounting (A)
  5. Tracing valuable items such as diamonds, wines, brand clothing (A)
  6. Tracing sources of food ingredients, clothing, etc. (A)
  7. Smart Contracts (A)
  8. Digital Content Distribution (Articles, Music, etc) (A)
  9. Drug Tracing (A)
  10. Prediction marketplaces (A)
  1. Data Storage (I)
  2. Cyber Security (I)
  3. Database Management (I)
  4. Internet of Things Data Network (I)
  5. Blockchain Search (I)
  6. Distributed Computing (I)
  7. Bitcoin, Ether, Eris, etc (I)
Ecosystem Level
  1. Blockchain News Outlets (E)
  2. Blockchain Analytics Software (E)
  3. Blockchain consultancies (E)
  4. Blockchain investment funds (E)
Generally I think a lot of the existing companies would adapt Blockchain and it is hard to differentiate and compete with an already existing company if the only differentiation is using blockchain.
Blockchain is mostly useful when it eliminates a third party whose main responsibility is maintaining trust (e.g. banks) and the most promising start-ups in blockchain would be in the infrastructure/API level so that other companies improve their already existing solutions based on these start-ups. Blockstack, BlockCypher, Brave, and BitMark are my favorite blockchain startups.
On the application level, companies who help businesses and consumers trace and authenticate a product and its source are the most valuable.
Do let me know in the comments what you think about these categories, and the other unique applications that you know about or can think of!
You have just read an article that categorized by title Blockchain by title What is blockchain and what are some applications of blockchain?. You can bookmark this page with a URL https://bikeshsrivastava.blogspot.com/2018/01/part-54-what-is-blockchain-and-what-are.html. Thank You!
Author: Bikesh Srivastava - Thursday, 18 January 2018

7 comments to "What is blockchain and what are some applications of blockchain?"

  1. I appreciate your work on Blockchain. It's such a wonderful read on Blockchain tutorial. Keep sharing stuffs like this. I am also educating people on similar Blockchain so if you are interested to know more you can watch this Blockchain tutorial:- https://www.youtube.com/watch?v=lf5d-R8-N20

  2. Good Post! Thank you so much for sharing this pretty post, it was so good to read and useful to improve my knowledge as

    updated one, keep blogging…!!.. Blockchain Online Course

  3. At Coepd (Center of Excellence for Professional Development) we practice Object-Oriented Programming concepts and mentor .Net Platform, C#.NET, ADO.NET which helps the attendees to build database-driven Web applications and Web Sites successfully. We also guide the attendees to develop web-based enterprise applications using ASP.NET and Visual Studio which comforts in developing the Web Services using .Net framework in Service-oriented Architecture. The Internship Program Also covers Frontend design technologies HTML, HTML5, CSS, CSS3, XML, Bootstrap, JQuery, Angular JS, and AJAX. Our collaborative ecosystem comprising of Partnerships with Software Companies enables real time software development life cycle experience.


  4. Blockchain Technologies (blockchaintechnologies.com)
    Blockchain Technologies is a huge static content website that covers practically every single question you might have about blockchain. Additionally, the site also has a news section where stories from the largest cryptocurrency news blogs are gathered.
    I added this site to this list of the 27 best cryptocurrency blogs for three main reasons. The first is that the content is absolutely amazing. It is very obvious that the writer spent A LOT of time researching about cryptocurrencies. Secondly, the UI of the website is astonishing. The colors are very well picked, the site charges in the blink of an eye and it is completely responsive. And finally, although the Blockchain Technologies blog has a couple Ads, it is very clear that the main objective of the site is to inform, and not to just make money with visitors.

  5. CoinDesk
    With over 10 million unique visitors, CoinDesk is the leading digital media, events and information service company for the crypto asset and blockchain technology community.

  6. CoinDesk
    With over 10 million unique visitors, CoinDesk is the leading digital media, events and information service company for the crypto asset and blockchain technology community.


Life Is Complicated, But Now programmer Can Keep It Simple.