Top 5 Applications of Blockchain in Marketing & How They Change Marketing

The blockchain technology has successfully disrupted many industries, and the banking sector is one of the main beneficiaries, dare we say. The fintech sector is truly up and running, and companies everywhere are building blockchain solutions. With use cases such as international payments, KYC, and optimized cash management, the blockchain is truly the next big thing when it comes to the finance. Learn Online Software Engineer Courses from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career. According to surveys, 90% of executives surveyed said that their firm was looking into using blockchain for their operations. Due to the decentralized nature of the blockchain, it is easier to form a global banking network where international transactions and other operations could be carried out easily. Santander, a Spain-based bank, reports savings of USD 20 billion a year if blockchain is incorporated. Different consortiums and organizations have started taking collective steps toward blockchain adoption. Talking about the current scenario, there exist many potential use cases for blockchain in the banking sector. What follows is a brief description of each of these use cases, their comparisons with traditional methods, and their benefits. Explore our Popular Software Engineering Courses Master of Science in Computer Science from LJMU & IIITB Caltech CTME Cybersecurity Certificate Program Full Stack Development Bootcamp PG Program in Blockchain Executive PG Program in Full Stack Development View All our Courses Below Software Engineering Courses Check out our free courses to get an edge over the competition. Know your customer (KYC) regulations As of now, banks and other financial institutions spend up to USD 500 million per year to comply with KYC regulations. KYC is intended to reduce or completely eradicate terrorism or money laundering, with comprehensive background checks of all bank customers, in accordance with some requirements. The current scenario is that every company has their own independent KYC procedures. With the introduction of the blockchain, the independent verification of a particular client could be accessed by different companies, so that the whole KYC process need not be done again. For instance, if Carl opens an account in Axis bank, and has a KYC done over there, his details are stored in a blockchain node on the global network. This way, when he wants to open another account in Citibank, the staff then need not carry out the KYC process all over again; instead, they just read the data from the blockchain, and Carl’s identity is confirmed. Explore Our Software Development Free Courses Fundamentals of Cloud Computing JavaScript Basics from the scratch Data Structures and Algorithms Blockchain Technology React for Beginners Core Java Basics Java Node.js for Beginners Advanced JavaScript Blockchain Applications in Supply Chain Check out upGrad’s Advanced Certification in Blockchain Payments: local and international Low security and a lot of intermediaries in the payment processes are two factors hurting this area in the present scenario.  more and more commercial banks are looking to introduce blockchain into the payment process, without waiting for central banks to make a move. For example, UBS of Switzerland has come up with a utility settlement coin, which is a digital currency for use in international financial markets. The blockchain firm Ripple developed a payment application that settles transactions, even international, instantly, and partnered with a consortium of 61 Japanese banks for the same. According to Ripple, this app would make it extremely easy for banks to settle round-the-clock transactions and payments. The customers will just require a bank account, phone number, and a QR code/barcode to use the application. While Ripple was created in an attempt to solve the problems related to international payments, Stellar Lumens (XLM) was created to solve Ripple. Stellar was initially built keeping Ripple’s system as the base with the aim to make the global economy much more inclusive. But, looking at the complexity of the said system, Stellar redesigned itself with a brand new system. In-Demand Software Development Skills JavaScript Courses Core Java Courses Data Structures Courses Node.js Courses SQL Courses Full stack development Courses NFT Courses DevOps Courses Big Data Courses React.js Courses Cyber Security Courses Cloud Computing Courses Database Design Courses Python Courses Cryptocurrency Courses Check out upGrad’s Advanced Certification in DevOps  For Ripple, banks and MNCs need to transfer the XRP token through the Ripple network, whereas Stellar allows individuals to trade money directly with one another using XLM (Lumens) as a medium, and “anchors” to take care of the fiat currency aspects. Basically, suppose you need to transfer money overseas, using Ripple, your bank will directly send the Ripple to the recipient’s account and the payment is made at whatever exchange rates and fees the bank decides. Whereas, using Stellar, the currency conversion takes place first, after which an “anchor” helps in transferring the converted currency to the recipient’s account. Anchors are basically money transferring companies, and you can pick the anchor of your choosing. All in all, Ripple allows MNCs and large banks to make cost-effective international transfers and currency conversions, Stellar allows individuals to make much more cost-effective currency and money transfers. Stellar is a non-profit with the goal of increasing the inclusiveness in the global payment system. Read our Popular Articles related to Software Development Why Learn to Code? How Learn to Code? How to Install Specific Version of NPM Package? Types of Inheritance in C++ What Should You Know? Syndicated loans This is one area of banking where multiple institutions have come together to form consortiums to facilitate blockchain adoption. Credit Suisse is one of those 19 institutions, which are working towards putting syndicated loans on the blockchain using distributed ledger technology, more commonly known as blockchain technology. Currently, this is an area which is still quite behind in terms of the technology used. Fax communications, large delays in settling loans and other hurdles are faced while processing syndicate loans. What blockchain technology aims to do is create a method of communication between different institutions, so that loan ownership changes can quickly be reflected across all of them. The aforementioned consortium already has plans to put out one or two loans within the next year on this blockchain concept. Fraud reductions The current banking scenario, even after cutting-edge innovations in security, is not safe from fraudulent activities. Due to being based on centralized databases, banking systems are susceptible to cyber-attacks and hacks, as all the information is stored in one place. Frauds and malicious activities lead to huge losses for both banks and their customers. What blockchain technology can accomplish here is that due to its distributed nature, it substantially reduces the risk of network failure due to one or two nodes being taken down or hacked. Storage and encryption of every single byte of data is carried out on the blockchain, in addition to the verification process. In the event of a data breach or hack, each node which has access to the transaction data is made aware of the breach and can take remedial steps immediately. Financial inclusion Access to basic banking services is still a herculean task for many poverty-stricken and underdeveloped nations of the world.. More than 200 million small business owners still do not have access to basic financial institutions, and financial inclusion will only help in making them independent. Blockchain technology can help in a few different areas here. As discussed earlier, use cases like KYC are already a step in the right direction. Low-cost transactions, seamless international payments, and easy loans are just a few of the many banking processes that can be made easier using blockchain, thus helping us achieve financial inclusion. Master the Technology of the Future – Blockchain The blockchain technology has indeed a bright and exciting future. As real-time, open-source, and trusted platforms that transfer data and value without hassles, they can help not only reduce the cost of processing payments, but also help develop new services, products, and solutions that can generate new revenue streams. If you’re interested to become a blockchain developer and build smart contracts and chain codes, checkout IIIT-B & upGrad’s Advanced certificate program in blockchain technology.

Not long ago, Bitcoin was the new buzz of the town and all everyone wanted was to get their hands on this new currency which continues to rock the world economy even today. But a very few people are aware of what exactly is Bitcoin and how it works. Learn Software Courses from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career. What is Bitcoin? Bitcoin is a cryptocurrency, which began as a decentralised digital currency in the year 2008. The currency was introduced by an unknown individual/organisation using the pseudo-name of Satoshi Nakamoto. The motive of creating the Bitcoin was to introduce a secure, immutable and verifiable means of currency exchange without any central regulatory authority (bank or payment gateway). Operating with the help of Blockchain (a decentralised and open digital ledger that records all Bitcoin transactions), Bitcoin has changed the way we transact and has been considered as a revolution by several tech enthusiasts. Blockchain Technology Use Cases in the Banking Sector Explore our Popular Software Engineering Courses Master of Science in Computer Science from LJMU & IIITB Caltech CTME Cybersecurity Certificate Program Full Stack Development Bootcamp PG Program in Blockchain Executive PG Program in Full Stack Development View All our Courses Below Software Engineering Courses How does it work? Bitcoins are self-contained digital currency tokens that have a value of their own. There is no need for any bank to store them or maintain their value. This self-regulating currency works on the principle of Blockchain and several different cryptographic technologies. Public key cryptography is one of the most fundamental cryptographic technologies that make up the essence of Bitcoin. Each of the Bitcoin is associated with the owner’s ECDSA (Elliptic Curve Digital Signature Algorithm) key. When a transaction is made, the key gets attached to the number of coins and the message thus formed is signed with the owner’s private key. This message is then broadcasted to the Bitcoin network (network based on Blockchain) for the peers to know that the new owner of these coins is the individual who possesses the new key. The signature of the previous owner ensures authenticity and the transaction is stored as a record with everyone for future verification. These transaction records are stored in the form of blocks, forming the complete Blockchain ledger. All participant computers in the network keep a copy of the Blockchain which is updated by passing new blocks. In order to ensure that the blocks are secured and immutable, each new block confirms the integrity of its predecessor, back to the very first addition in the chain – the genesis block. The chain, therefore, remains protected as no party can overwrite any record. Explore Our Software Development Free Courses Fundamentals of Cloud Computing JavaScript Basics from the scratch Data Structures and Algorithms Blockchain Technology React for Beginners Core Java Basics Java Node.js for Beginners Advanced JavaScript An added layer of security The Hashcash cost function is used in regulating the generation of bitcoins. The Hashcash function, first of its kind, is a verifiable and secure cost function which happens to be non-interactive. It has no secret keys that need to be managed. Hashcash uses the widely known SHA1 or SHA-256 symmetric key cryptography. The Hash Function (not to be confused with Hashcash function used in regulating the generation of bitcoin) is one of the most secure ways of protecting the integrity of the blocks in the blockchain. The input data is transformed into a compact string through an irreversible method. The slightest change in the data completely changes the hash or the compact string, ensuring that no one can create a block of data with the same hash code. Each hash matches one unique input stream, which is why Bitcoin blocks need not contain serial numbers for identification. Using the hash function ensures both identification and integrity verification of the blocks. Blockchain Applications in Supply Chain In-Demand Software Development Skills JavaScript Courses Core Java Courses Data Structures Courses Node.js Courses SQL Courses Full stack development Courses NFT Courses DevOps Courses Big Data Courses React.js Courses Cyber Security Courses Cloud Computing Courses Database Design Courses Python Courses Cryptocurrency Courses The generation and Mining When Bitcoin circulation first began, only a limited number of Bitcoins were released and distributed. Bitcoins are constantly being generated, even at this very moment. The generation of the bitcoins can be understood from the process of Bitcoin mining, which helps in the production and addition of a valid block. Understanding Mining Adding a block to the existing Blockchain requires time as well as processing power, making it a difficult task.  In order for a successful addition of a block to the Blockchain, the miners or users need to solve a hard mathematical puzzle/problem, which requires high computational abilities, thus the time and the processing power. However, the addition of the block is necessary to ensure that the transactions are updated regularly. As a reward or incentive for contributing electricity, processing power as well as time to achieve the same, the individual gets a few numbers of bitcoins (the number is fixed by the Bitcoin network). Apart from that, the transaction fees present in the block’s transaction is also claimed by the producer of the block. The unlocking of Bitcoin bounty by contributing processing power is known as ‘Bitcoin Mining’. The rules of mining are fixed and the difficulty adjusted to limit the block production rate to 1 block per 10 minutes. Thus as the number of contributors or minors increases, it becomes increasingly more difficult for each of the participants to add a block. The increased difficulty also ensures higher security of the transactions. Rise in popularity Whenever something revolutionary is introduced, it takes time for people to accept it. However, Bitcoin has risen to popularity very fast. The rise in popularity of this cryptocurrency can be attributed to its new approach towards currency distribution. Here are a few reasons that made Bitcoin very popular and continue to attract new investors – Decentralised nature: There is no regulating authority. Each participant computer or individual contributes to the maintenance of the Blockchain and hence, no financial policy or fraud can ever take away the value of Bitcoin. Anonymity: Another beauty of using the bitcoins or being a part of the blockchain is that you do not need to confirm your identity. You can be anonymous and still control or use bitcoin and trade with them. Easy to set up and transact: Bitcoin system is fairly easy to adapt and set up. No questions are asked of any authority and you can become a part of the network within a few minutes or even seconds. Another advantage that attracted a lot of investors, as well as individuals, is that Bitcoin has negligible transfer fees. This means that all international transfers are easy and cheaper to conduct through Bitcoin. Transparent, and fast: The Bitcoin ledger is an open record, that maintains the record of all transactions held till now, accessible to all members of the network. Also, the transactions are quite fast. Read our Popular Articles related to Software Development Why Learn to Code? How Learn to Code? How to Install Specific Version of NPM Package? Types of Inheritance in C++ What Should You Know? Close Competitors And Bitcoin doesn’t happen to be the only cryptocurrency in the market today. Following in the footsteps, are more than 1500 listed cryptocurrencies, out of which some have managed to gain support and popularity. These include names like Ethereum, Bitcoin Cash, Ripple and Litecoin. Each of these currencies is focused on different motives but function on the same Blockchain Technology. Applications of Blockchain in Healthcare The Road Ahead History shows that Bitcoin’s value has been very volatile and continues to fluctuate throughout. Its rising popularity and the revolutionary Blockchain technology has already promoted several firms to embrace the change. However, it is too early to say whether Bitcoin will remain and prevail as the universal digital currency. Like any other venture, it needs time to mature. But one thing is for sure – our financial system and the economy are never going to be the same. If you’re interested to become a blockchain developer and build smart contracts and chain codes, checkout IIIT-B & upGrad’s Advanced certificate program in blockchain technology.

The automotive industry is witnessing huge growth with every passing year. In 2017 alone, 73.5 million cars were produced globally. It has been projected that by the end of 2018, the global sales of cars can increase up to a total of 81.5 million units! The fact that this is such a profitable industry showcases why blockchain technology is tapping into it. Check out our free courses to get an edge over the competition. Learn Software Courses from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career. Wait, what is blockchain exactly? Don’t know what blockchain is? Don’t worry, you aren’t the only one. Since the technology is relatively new, a lot of people are not entirely sure what it is and how it functions. Well, you can understand blockchain with the help of two terms. Digital. Ledger. That’s all it really is. The blockchain is a decentralized as well as a digital ledger that allows effective recording and sharing of information. While the traditional mode of transactions takes time to record and be available to see, this is not the case with blockchain. Instead, the transactions are recorded instantaneously, leaving little room for friction. Check out upGrad’s Full Stack Development Bootcamp (JS/MERN) Since making alterations to a blockchain without detection is impossible, this makes this technology very safe to use. There are fewer chances of scam and fraud when blockchain is involved. The fact that the world is moving towards digital solutions have made blockchain a lucrative technology. The need for mobility and innovation in the automotive industry have also made it an attractive tool for consumers, dealers, manufacturers and OEMs alike. How is Blockchain changing the automotive industry? When we buy cars today, we have the option of doing so with digital currencies. For instance, the AutoBlock allows you to purchase and sell cars using the blockchain technology. It does so while ensuring the security of the mode of transaction. This is just one example of how blockchain technology has been changing the automotive industry. There are other ways technology can revolutionize the automotive industry as well. Here is how it can be done: Check out upGrad’s Java Bootcamp.   The development of user-friendly cars Let’s face it. Physical keys to cars can be easily stolen. And if they are stolen, you are basically giving an opportunity for anyone to drive off your car to the sunset. However, with the development of private keys, this can be stopped. How so? Through the use of blockchain which is operated by the manufacturer. The consumer can be given a private key (a code) to unlock their car. The only time the car unlocks was when the key entered matches the public key that the manufacturer has. Rather than giving others your keys when the need arises, you can form smart contracts with them, whereby they are given fleeting access to your car. This can come in handy when you want a courier service to leave the delivered package in your car in your absence. Blockchain can do it for you without the process being unsafe. Blockchain Applications in Supply Chain Cars without drivers We already see some driverless cars on the road. Blockchain can effectively redefine how these cars function. The idea of being in an autonomous car seems scary. After all, how can a car know about the condition of a given road or even be safe enough to be used? Well, blockchain can truly revolutionize this niche by making such cars as safe as possible. The technology can allow for different cars to communicate with one another as well as access data. This, in turn, ensures that the cars know everything about the prevalent traffic in the route, the conditions of the road and any other data needed for a safe trip. The blockchain is the technology, if used properly, that can change the experience of driving in a driverless car. In-Demand Software Development Skills JavaScript Courses Core Java Courses Data Structures Courses Node.js Courses SQL Courses Full stack development Courses NFT Courses DevOps Courses Big Data Courses React.js Courses Cyber Security Courses Cloud Computing Courses Database Design Courses Python Courses Cryptocurrency Courses Security of data The Autoblock service we mentioned, in the beginning, is an example of how transactions can be secure via blockchain. By getting into a smart contract, both parties are aware of the contract, and the deal is only finalized when the two parties agree to the contract. There is little room for fraud, which makes the transactions secure. Streamlining of car insurance processes A very important part of the automotive industry is the car insurance niche. When you buy a car, you get it insured. This process is usually marked by hassles. Blockchain can transform this process for the better. Not only can claims be processed at a faster pace, but the process can be streamlined as well. Again, smart contracts come in handy as well. Also, blockchain reduces the need for middlemen in insurance, therefore reducing cost. Managing vehicle data Blockchain allows the industry players to manage the data of various vehicles efficiently. This involves updating data in real time to allow it to be used by the industry as needed. For example, odometer fraud can be detected using blockchain. A connector present in the car can send real-time data about the vehicle mileage. This information, when available to OEMs, can be used to sell cars and value it correctly. Blockchain Technology Use Cases in the Banking Sector Easy authentication of ownership of cars Even though we have entered the modern age, we still do a lot of old school things like carrying our vehicle registration and licenses when traveling in our cars. Surely, in a digital world like today, there has to be a better solution. Blockchain can be such a solution. Normally, the process of getting ownership of a car or changing the owner is lengthy. Blockchain has the power to make it instantaneous. Even in the case of rental cars, the law enforcers can authenticate the ownership quickly. This can ensure that the police can have more time for other aspects of their jobs. So, it doesn’t just make things easier for automobile users but also for the law enforcers. Explore Our Software Development Free Courses Fundamentals of Cloud Computing JavaScript Basics from the scratch Data Structures and Algorithms Blockchain Technology React for Beginners Core Java Basics Java Node.js for Beginners Advanced JavaScript Purchasing used cars Blockchain also has the power to transform how used cars are purchased. Normally, you rely on the word of the mechanic and car dealership to assess if the used car is as used as it claims. With blockchain, you can have real-time data about its life. You can know about its mileage, repair history and if it has been in any accidents. This makes purchasing used cars a safe and transparent process. Applications of Blockchain in Healthcare All in all, blockchain can revolutionize the automotive industry as we know it. However, only time will tell if its potential can truly be utilized. If you’re interested to become a blockchain developer and build smart contracts and chain codes, checkout IIIT-B & upGrad’s Advanced certificate program in blockchain technology.

If ‘Blockchain’ is the word you’re hearing a tad too much nowadays, then by now you must have understood that the latest hype behind Blockchain technology is real. Blockchain has emerged as one of the hottest buzzwords of the tech world today. In fact, in just the past one year, there’s been a 250% increase in the Google search requests for the word ‘Blockchain.’ Companies and organizations around the world are embracing this pioneering technology to shape and enhance their business operations. Learn Software Development Courses from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career. Check out our free courses to get an edge over the competition   But, let’s move over this hype for a sec, and focus on the question – What is Blockchain? What is Blockchain? The brainchild of Satoshi Nakamoto, Blockchain came to the spotlight in 2009 with its first major application – Bitcoin. While Bitcoin is a cryptocurrency, Blockchain is the technology that resides at its core. In simple words, Blockchain is an open-source, distributed ledger capable of recording and storing information (primarily financial transactions) which is then secured by unique cryptographical designs. As the name suggests, the Blockchain infrastructure is made up of numerous ‘blocks,’ each of which contains the transaction data, a timestamp, and the link (cryptographic hash) to the preceding block. 7 ways Blockchain is Revolutionizing the Automotive Industry This unique and innovative design makes Blockchain a safe space for data – the data cannot be deleted, modified, manipulated, or misused in any way. Another crucial aspect of Blockchain technology is that it is consensus-oriented which further reduces the possibility of data being manipulated or misused. Its design is such that a large number of computers (nodes) are connected over a network. So, every time one wishes to add a transaction to a blockchain, he/she must solve a mathematical test, the results of which are shared with all the machines connected to the network. Only when every computer on the network mutually agrees on the result can the user add transactions to the chain. Furthermore, in Blockchain, data is never stored in one particular location, thereby, making it harder for cybercriminals to access it. Blockchain is, thus, the first technology that facilitates the transfer of digital ownership in a decentralized manner. These features are what make Blockchain so appealing to the magnates of the tech world. Now that we’ve answered what is Blockchain, arises the question – How to become a Blockchain expert? Check out upGrad’s Advanced Certification in DevOps Explore Our Software Development Free Courses Fundamentals of Cloud Computing JavaScript Basics from the scratch Data Structures and Algorithms Blockchain Technology React for Beginners Core Java Basics Java Node.js for Beginners Advanced JavaScript How To Become A Blockchain Expert? As more and more companies and institutions adopt the Blockchain technology, the demand for skilled and qualified Blockchain professionals is also escalating rapidly. Bloomberg maintains that in 2017 itself, the number of Blockchain related job postings increased by four times on LinkedIn. So, there’s never been a better time to launch a successful career in Blockchain! However, to become a Blockchain Expert, you must first develop the skill set required for this technology. Check out upGrad’s Full Stack Development Bootcamp (JS/MERN)  upGrad’s Exclusive Software Development Webinar for you – SAAS Business – What is So Different? document.createElement('video'); https://cdn.upgrad.com/blog/mausmi-ambastha.mp4   Get Acquainted With Blockchain Architecture When working with Blockchain technology, it is needless to say that, you must possess a thorough understanding of Blockchain and its innate architecture. This means that you must be well-versed with Blockchain concepts like cryptography, cryptographic hash functions, distributed ledger technology, consensus, decentralized consensus, smart contracts, and trusted computing, to name a few. This first step is crucial to building a strong foundational knowledge in Blockchain technology. Applications of Blockchain in Healthcare To get an in-depth understanding of the working of Blockchain, you can read this whitepaper on Bitcoin. Explore our Popular Software Engineering Courses Master of Science in Computer Science from LJMU & IIITB Caltech CTME Cybersecurity Certificate Program Full Stack Development Bootcamp PG Program in Blockchain Executive PG Program in Full Stack Development View All our Courses Below Software Engineering Courses Learn How Cryptocurrency Works Since Blockchain’s star application is cryptocurrency (Bitcoin), you must know how the system works. There are numerous platforms such as Coinbase and Coinmama where you can learn how to handle cryptocurrency and digital transactions. All you need to do is to register on any of these platforms (choose one that is accessible in your country) and purchase coins. Take baby steps and start by purchasing a few coins first. Build your portfolio as you go. Since your primary focus here is to learn the process, you do not need to buy a lump sum amount of coins. For small transactions, online wallets are the best choice. As you continue to make purchases using your wallet, the idea of how digital financial transactions are conducted using cryptocurrencies will gradually become clear to you. Data Structures and Cryptography Just as data structures are an integral part of coding, so it is also a fundamental aspect of Blockchain technology. As a matter of fact, Blockchain uses a combination of data structures and cryptography to create a secure and robust environment for data. Thus, to become a Blockchain expert you must build a solid grasp on data structures and cryptographic designs and functions including hash functions like MD5, CRC32, and SHA1. Web Development Web development is a pivotal aspect of Blockchain technology. In fact, Blockchain developers and experts often begin their career with building and designing decentralized applications. This entails that a Blockchain expert must possess both front-end and back-end development skills. As a Blockchain developer, you will be expected to be well-versed in HTML, CSS, JavaScript, Ruby, PHP, and Python, among others. So, make sure you brush up on these programming languages while honing your database skills as well. In-Demand Software Development Skills JavaScript Courses Core Java Courses Data Structures Courses Node.js Courses SQL Courses Full stack development Courses NFT Courses DevOps Courses Big Data Courses React.js Courses Cyber Security Courses Cloud Computing Courses Database Design Courses Python Courses Cryptocurrency Courses Know Your Platform If you wish to become a Blockchain expert, merely understanding Blockchain architecture and concepts will not suffice – you must know your platforms well. Choosing the right Blockchain platform that’s best suited for a particular task is the mark of a great Blockchain expert. So, get ready to dive deep into the various Blockchain platforms like Fabric, Ethereum, Ripple, and R3 Corda. An in-depth knowledge about these platforms will help you identify which platform will work best for which use case. Read our Popular Articles related to Software Development Why Learn to Code? How Learn to Code? How to Install Specific Version of NPM Package? Types of Inheritance in C++ What Should You Know? Why Should You Consider Transitioning To Blockchain Based Roles? As we said earlier, Blockchain is the hottest trend and buzzword in the industry right now, so opportunities in this domain are growing rapidly too. The foremost reason as to why you should consider transitioning to Blockchain is, of course, that it is exciting, innovative, and is here to stay. Tech giants like Facebook, IBM, Microsoft, Amazon, Goldman Sachs, and many more have already started harnessing the benefits of Blockchain. While the demand for Blockchain experts is ever-increasing, what’s lacking is the supply of befitting talent. There are not many people in this field, which makes it the perfect playing field for individuals who’re upskilling in Blockchain. Also, since there’s hardly any competition, the pay for most Blockchain jobs is huge. Blockchain Technology Use Cases in the Banking Sector Blockchain is no rocket science. If you bear the passion for learning something new and exciting, then Blockchain should be yet another challenge for you to accomplish. Once you have a clear understanding of Blockchain technology, its concepts, and working, making a career transition to Blockchain shouldn’t be difficult. If anything, you’ll embark on the road to a promising future. If you’re interested to become a blockchain developer and build smart contracts and chain codes, checkout IIIT-B & upGrad’s Advanced certificate program in blockchain technology.

Once you know what is blockchain technology, you understand that the sealing mechanism is the key to the successful and accurate maintenance of a blockchain. But how can these stringent requirements be fulfilled? The conditions imposed on the sealing mechanism of a blockchain are satisfied using a hash function. Learn Online Software Development Courses from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career. The mathematical definition of a hash function is a function that takes a variable length numerical input and returns a number of fixed length as output. In order to work with strings of characters, ASCII codes can be used to convert characters into integers and vice versa. The output returned by the hash function is known as the hash value. Most popular hash functions have a fixed hash value size lying between 160 and 512 bits. All blockchains impose target conditions on the output of the hash function when a block is an input to it. To fulfil these target conditions, a seal is computed and concatenated to the block being stored. This seal encrypts the contents of the block and preserves their integrity. This is because any change to the block would drastically change its corresponding hash value, and cause it to escape the target conditions. The computed seal is commonly known as a nonce. A common target condition that the nonce must satisfy is ensuring that the leading ‘n’ characters of the output hash be zero. The value of ‘n’ sets the level of difficulty in the blockchain, which may be adjusted periodically as per the requirements of the network. Blockchain Applications in Supply Chain Explore Our Software Development Free Courses Fundamentals of Cloud Computing JavaScript Basics from the scratch Data Structures and Algorithms Blockchain Technology React for Beginners Core Java Basics Java Node.js for Beginners Advanced JavaScript Check out our free courses to get an edge over the competition  There are three important properties that hash functions must satisfy in order to be used effectively in the blockchain. Given the hash value output by the function, it must be computationally difficult to find any input that, when hashed, returns the given output. This is known as pre-image resistance. In other words, the hash function should be computationally expensive to reverse. Similarly, given the input to the function, it must be difficult to compute any other input to the same function that outputs the same hash value as the original input. This is known as collision resistance. However, given any input to the hash function, it should be easy to compute the corresponding value output by the hash function. This is to ensure easy verification of the integrity of the contents of the blockchain. Explore our Popular Software Engineering Courses Master of Science in Computer Science from LJMU & IIITB Caltech CTME Cybersecurity Certificate Program Full Stack Development Bootcamp PG Program in Blockchain Executive PG Program in Full Stack Development View All our Courses Below Software Engineering Courses The first two properties given above are critical because they slow down the rate of computation of the nonce, or proof of work. This causes the rate at which blocks are added to the chain to be limited by the rate of computation of the nonce, and not the rate at which transactions occur. This is absolutely crucial because it prevents dishonest individuals in the network from generating and adding blocks of false transactions to the chain at a quicker rate than the network itself. This is because a single individual cannot compete with the computing power of a large network, and thus the longest chain of blocks always belongs to the majority in the network itself. This allows us to be able to safely accept the longest chain as the real blockchain under the assumption that the majority in the network is honest. The vulnerabilities of a blockchain in the case of a dishonest majority have already been discussed in a prior article. In-Demand Software Development Skills JavaScript Courses Core Java Courses Data Structures Courses Node.js Courses SQL Courses Full stack development Courses NFT Courses DevOps Courses Big Data Courses React.js Courses Cyber Security Courses Cloud Computing Courses Database Design Courses Python Courses Cryptocurrency Courses Check out upGrad’s Java Bootcamp  Applications of Blockchain in Healthcare There are many different forms of hash functions that are used in cryptography. MD5 is the most popular hash function of the Message Digest family, which also consists of MD2, MD4 and MD6. The SHA family, consisting of SHA-0, SHA-1, SHA-2 and SHA-3, is another popular set of algorithms used for hashing. RIPEMD and Whirlpool are other common hash functions. These functions all implement different techniques to obtain the properties of pre-image and collision resistance. The sealing mechanism of the blockchain ensures that transactions cannot be falsified after the blocks have been added to the chain. But how are any imposters in the network prevented from faking a transaction between two members of the network? In other words, how can the identity of the members involved in the transaction be verified in an anonymous network distributed across the globe? upGrad’s Exclusive Software Development Webinar for you – SAAS Business – What is So Different? document.createElement('video'); https://cdn.upgrad.com/blog/mausmi-ambastha.mp4 Verification of any transaction conducted in a blockchain network requires a digital signature. Each member of the blockchain network is assigned a public key and a private key. The public key of each member is known to all members of the network, but the private key remains secret and is known only to the individual it is assigned to. Any message encrypted using the private key of a member node can only be decrypted using the corresponding public key of the pair, and vice versa. This allows nodes to approve transactions by signing them with their private key. This can now only be decrypted by their corresponding public key, thus verifying them as the senders. The transaction can similarly be encrypted by the receiver as well in order to confirm their involvement in the transaction. 7 ways Blockchain is Revolutionizing the Automotive Industry Check out upGrad’s Full Stack Development Bootcamp (JS/MERN)  This mechanism allows nodes to authenticate transactions by verifying the identities of the nodes involved while still maintaining their anonymity. The digital signature and the concept of public and private keys prevents other nodes from making false transactions on your behalf even in the event of a 51% attack. Thus, it is an elegant way of ensuring the security as well as the anonymity of individual members of the network. Read our Popular Articles related to Software Development Why Learn to Code? How Learn to Code? How to Install Specific Version of NPM Package? Types of Inheritance in C++ What Should You Know? If you are interested to create blockchain applications from scratch, check out upGrad & IIIT-B’s Executive Certification in Blockchain from IIITB.

Through the design of the technology, we know that the blockchain is immune to attack from any individual member of the network. However, what happens if the blockchain comes under attack from a large group of participants? More precisely, what happens if a group successfully takes control of over 50% of the computing power of the blockchain? Such a scenario is known as a 51% attack, and it is one of the few real vulnerabilities of a blockchain. Learn Software Engineering Programs from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career. To understand the problems posed by a 51% attack, we must return to the fundamentals of the blockchain and recall the process of adding a new block to the chain. Members of a network compete to be the first to compute a valid seal for the block and claim a reward. Inevitably, a group of individuals in control of over half the computing power of the network can monopolize this process and claim all the rewards for themselves. Such a situation allows this group to be the only entity to benefit from the rewards of the blockchain by preventing other members from adding blocks to the chain. This is possible because majority rule is among the fundamental concepts of a blockchain. Check out our free courses to get an edge over the competition.  Another possible consequence of a 51% attack is known as double spending, and this is significantly more harmful than the prior one. Double spending occurs when a group of individuals successfully reverse completed transactions in a blockchain, allowing them to retrieve their money and spend it again. This is the digital equivalent of counterfeiting. It is made possible during a 51% attack due to the fundamental idea that the longest chain of a blockchain is the true one. Ironically, this is the same safeguard that makes double spending impossible when attempted by an ordinary member of the network. 7 ways Blockchain is Revolutionizing the Automotive Industry In order to understand how double spending may occur, let us consider the following example. Imagine a network in which there exists an alliance that controls over half the computing power of the network. Suppose that A, a member of the alliance, buys a house from B, an ordinary member of the blockchain. The transfer of money from A to B is recorded by each ordinary member of the network, but all members of the alliance secretly do not add this transaction to their records. The ongoing block is then completed and added to the chain by the honest individuals but secretly ignored by the alliance. There are now two versions of the blockchain in the network- the actual one with the recorded transaction, and the false one. As of this moment, the true blockchain is longer and accepted by the network, so the false version is kept secret by the alliance temporarily. Explore our Popular Software Engineering Courses Master of Science in Computer Science from LJMU & IIITB Caltech CTME Cybersecurity Certificate Program Full Stack Development Bootcamp PG Program in Blockchain Executive PG Program in Full Stack Development View All our Courses Below Software Engineering Courses Check out upGrad’s Advanced Certification in DevOps  The alliance now continue to record the ongoing transactions in the network, as well as privately conducting meaningless transactions among themselves. These transactions are not announced to the network and allow the alliance to generate blocks at a faster rate than the true blockchain. As the alliance possesses over half the computing power of the network, it is possible for it to add blocks to the false blockchain at a higher rate than the blocks added to the true blockchain. At some point, the length of the false blockchain exceeds that of the true blockchain, and the alliance now broadcasts this to the entire network. The network is then forced to accept this version of the blockchain as it is the longest version, and the transaction conducted between A and B is effectively reversed, allowing A to spend the same money on something else. What is Blockchain Technology? [Explained] Explore Our Software Development Free Courses Fundamentals of Cloud Computing JavaScript Basics from the scratch Data Structures and Algorithms Blockchain Technology React for Beginners Core Java Basics Java Node.js for Beginners Advanced JavaScript Thus, the alliance can monopolize the claiming of rewards and double spend money. They can also block transactions of other members using a similar procedure to that of double spending. They cannot forge a new transaction between ordinary members, however, as this requires the private keys of the members between which the transaction occurs. It is also quite difficult for them to modify blocks that have already been stored in the blockchain as this requires a very vast majority of the computing power of the blockchain to be feasible. The further back the blocks in the chain, the more secure they are. The frailties of the blockchain exposed by a 51% attack lead us to the conclusion that the more nodes in a network, the more secure it is. This is simply because it is significantly easier to gain the majority in a network of 10 people than in a network of a million. In order to compete with the computing power of a distributed network with nodes worldwide, an ordinary individual would have to spend vast amounts resources in the form of money, electricity and time, or form an alliance that is far too large and distributed to organize efficiently. In-Demand Software Development Skills JavaScript Courses Core Java Courses Data Structures Courses Node.js Courses SQL Courses Full stack development Courses NFT Courses DevOps Courses Big Data Courses React.js Courses Cyber Security Courses Cloud Computing Courses Database Design Courses Python Courses Cryptocurrency Courses Check out upGrad’s Full Stack Development Bootcamp (JS/MERN) In general, the largest blockchains are quite safe from a 51% attack. However, there have been some significant instances of 51% attacks in notable blockchains in the past. For example, ghash.io, a mining pool in the bitcoin network, briefly controlled over half the blockchain’s computing power in July 2014, which resulted in the pool voluntarily relinquishing some of its shares so as to not monopolize the mining of cryptocurrency. Bitcoin Gold was not quite as fortunate when it suffered a 51% attack during May 2018, and the malicious attackers successfully managed to double spend over 18 million dollars worth of cryptocurrency. Growing Demand for Software Engineers in Blockchain Technology The very fundamentals of a blockchain rely on the assumption that the majority in the blockchain is honest. This exposes the biggest weakness of a blockchain and its main true area of vulnerability. A dishonest majority can cause vast damage to the blockchain. Read our Popular Articles related to Software Development Why Learn to Code? How Learn to Code? How to Install Specific Version of NPM Package? Types of Inheritance in C++ What Should You Know? If you are interested to create blockchain applications from scratch, check out upGrad & IIIT-B’s Executive Certification in Blockchain from IIITB.