BlockChain technology is really giving wings to dreams !

Albert Einstein Quoted once ' If you can't explain it simply, you don't understand it well enough'

My Steemit post is an effort in that direction to make it simple for you to understand 'What Blockchain technology Is? and Moreover Why it Matters !!!

There's no doubting the fact that, Necessity is the mother of INVENTION. Definitely, any invention big or small affects human life but there are some which transcends our civilization to a new level altogether, and if I am not exaggerating... blockchain technology is one such step in that direction ...

First, we will find out why that necessity was felt!

Our Modern economy what we see at present has travelled through a long phase of liberalism, socialism, the welfare state, mixed economy, neo-liberalism which have been influenced by the great economists like Adam Smith, Keynes, Hayek to new a few Big giants.

But with the growing influence and intervention of technology in various spheres of life as has been never seen before , demands the same change in economic sphere for good.

The need of the hours is: Centralization and monopolization have to be to done away with the coming era of decentralization.

Informed educated and tech-savvy are looking to make the system more transparent and also sharing the decision making power with all unlike the previous monolithic institutes like Central Banks, financial institutions.

Blockchain technology which in its own way tries to open the closed system and brings people to join that open platform, which is transparent and gives you first-hand information of whats going on!!.

Now let's see how this works?
Without going much into technical details, we will keep in mind concepts only ..

Suppose there are 4 persons in this system A,B,C,D
Now if A wants to transfer money to B
1)using 3rd trusted party- it collects fees and takes some 3-4 days
2)Without any trusted entity, i.e. peer to peer -immediate transfer and cheaper than the fee that 3rd party collects.

Now let's dive little deeper and see the principle of Open Ledger or Distributed Ledger, which is the heart of Blockchain technology.

In open ledger, any new transaction gets linked to its preceding transactions only after verification by nodes in the network which then finds an entry in the open ledger.

Let's see how

A has only 10$ //recorded as 1st record
A gives to B 8$ //system checks if A has this much money or not and then gets linked to the 1st record.
B gives to C 2$ //Similar checking as above and gets linked to 2nd transaction
A tries to give 20$ to D //system will not accept it, as this is not possible.Hence will not become part of chain

Tht's simple and straightforward!

Blockchain will distribute centralized ledger to every node in the network.Every node will have a copy of the same version of the ledger.In a way, the Distributed system brings lots of eyes to keep the system open and eliminates the need for any centralized trusted party.

Now let's see how these transactions become part of the ledger .

There are some nodes called as MINER nodes, who invest their computational power and time to validate any transaction taking place in the system and the first one to do so will get rewarded Bitcoins.

Let's assume C and D are miners
They will first check if A has enough funds to transfer to B, once this is validated, Miners will look for that special key that will enable them to take the previous transaction and locking it to the new transaction.First, one to do so will broadcast it and others will simply record it and will look for another transaction to work on and get rewarded.

This process makes this system unforgeable, immutable and indelible.

To summarise, whenever any new transaction takes place then a unique cryptographic code is generated for that .Over a period of time, these blocks of codes gett cryptographically linked to one another ,which is rightly termed as 'monitored digital DNA'.

Well, that's the beginning but its footsteps show its relevance in a wide range of applications from banking, finance, medicines, administration, resource management to social life ..and what not!

People are really excited about it and have extrapolated it to the possibilities of eliminating hunger and poverty, restoring climate change and many more ...Certainly, these are hard pressed challenges for humanity!

And the reason for predicting is, It removes the intermediaries.Hence, input and output can be easily seen.That doesn't mean it will take away the role of Government, instead, it will facilitate that, with lots of hands working with the government.This will boost Autonomous Institutions, where societies will coming together and share their knowledge.Definitely, when we have a robust database of resources and list of people who deserve them, it can be easily and effectively targeted.

Because of its all-pervasive revolutionary nature, it has gained the name of being Disruptive Technolgy.So one should better be aware and informed ,at a time when a new system and currency is gaining momentum ..

We, humans, are always looking for maximising human potential and this disruptive technology is going to disrupt whatever is coming in its way.HASH technology is another step in the race of coming technologies .

But right now its important for us to understand the flow, where the system is heading!.
As sometimes back Putin has said "data is the wealth of tomorrow, and one who will have data will rule the world" and I fully endorse this!

I hope I am able to simplify the concepts to my readers and friends.
If you really find the article insightful kindly Resteem it to your friends...

For my next article on HASH TECHNOLOGY.. STAY TUNED !!