Blockchain technology has the potential to substantially change the range of financial services. Colin Ellis said that banks could benefit significantly from the development and implementation of Blockchain technologies in terms of cost saving, risk reduction in enhanced efficiency. Blockchain technology is still an emerging technology and is increasing its popularity very fast. Blockchain technology was the primitive form for the hash tree and is also called as Merkle tree. It was patented by Ralph Merkle in 1979 and was functioned by verifying and handling the data b/w computer systems.
Blockchain Technology
In simple terms, Blockchain technology is the public distributed ledger of all the transactions that have ever been executed. It is an incorruptible digital ledger of the economic transaction swhich can be programmed to record not only financial transaction but also virtually everything for value. It offers the way for un-trusted parties to consensus (reach agreement) on a common digital history. It also solves the problems without using a trusted intermediary.
To ensure the security of digital relationships, every Blockchain technology is comprised of three underlying technologies that are combined as:
- Cryptographic keys
- Distributed network (with a shared ledger)
- Network servicing protocol
Types of Blockchain technology
When we talk about the classification of Blockchain technology, there come two types of Blockchain and they are most generally differentiated as follows:
- Permission Blockchain
This is the type of technology which includes Bitcoin, Ethereum and so on. The most specific and interesting about permission Blockchain is that users have a copy of the Blockchain and can participate in the transaction verification process of their own volition. In this technology, users can also keep their anonymity.
Types of Blockchain Technology
- Permission less Blockchain
This is the type of technology with a prominent example of being the digital currency Ripple. In this technology, in order to have a copy of Blockchain and to participate in the process of transaction verification process, the users have to obtain the permission. Additionally, with such type of Blockchain technology, users cannot keep their anonymity.
BlockChain Technology 