By now, you’ve probably heard of Blockchain (if not, you’ve been living under the rock!). Blockchain is the technology behind the cryptocurrency - Bitcoin - that revolutionized the banking and financial sector.
But What is Blockchain?
According to Don and Alex Tapscott, the authors of “Blockchain Revolution,”
“The Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” In simple words, a Blockchain is a chain of records or data spread across a network of multiple peers in a system, wherein each peer holds a copy of the complete chain. This is what makes Blockchain a distributed ledger, where the information is stored and managed by a cluster of computers/peers rather than a single entity.
The Blockchain consists of blocks that store data, and the first block called the Genesis Block. Each time new data is added to a block in the chain, it is connected to other blocks in chronological order. Each of the blocks is linked to the other via cryptographic principles - it contains a timestamp and a cryptographic key that connects it to the previous block. Thus, each block is uniquely encrypted. While all the peers in a Blockchain network have a copy of the complete Blockchain database, only the user having the unique cryptographic key to a specific block can add new information to a particular chain.
Here are five core features of Blockchain that make it much more safe and transparent than conventional ledger systems:
- Distributed - As we mentioned, the Blockchain ledger is spread across the whole network instead of a centralized system, thereby making it tamperproof.
- Cryptography for security - The ledger is secured by cryptographic keys and functions to prevent the misuse and violation of data.
- Peer-To-Peer - The network isn’t controlled or managed by a central authority. Instead, it facilitates direct communication among peers in the network for greater transparency. This eliminates the need for third-parties.
- Add-Only - Peers can add data in the Blockchain only in a time-sequential order. This means that once a piece of information is added to a block, it is nearly impossible to manipulate or alter that data. So, it is practically immutable.
- Consensus - One of the most crucial aspects of the Blockchain, Consensus is what makes the ledger decentralized. The ledger can only be updated via Consensus. This means that any update or changes that have to be made to the Blockchain are first validated against the strict Blockchain protocol. The change can be added to the Blockchain only when all the after all the participating peers (nodes) on the network have reached a Consensus.
How does Blockchain work?
We’ll break down the mechanism of a Blockchain into five simple steps:
1. The first step begins with a peer (a node in the network) initiating a transaction by creating it and digitally signing it with a private key (created through cryptography). In a Blockchain, a transaction can pertain to various actions. However, usually, a transaction is a data structure that represents a value transfer among the peers on the network. The transaction data structure contains some logic of the value transfer, relevant rules, source and destination addresses, and other important validation information.
2. To propagate the transaction to peers who validate the transaction based on the set criteria, a flooding protocol - known as the Gossip protocol - is used. Generally, a transaction must be verified by more than one node in the network.
3. After the peers validate the transaction, it is added in a block which is then propagated to the network. This is when the transaction is deemed as confirmed.
4. The newly added block now becomes part of the ledger, and the block that will be added next in the chain has to link itself cryptographically to this block. This cryptographic link is the “hash pointer.” This is the point where the transaction gets a second confirmation, whereas the block receives its first confirmation.
5. Further on, each time a new block is added to the chain, the transactions are reconfirmed. For a transaction to become final, six confirmation within a network are a must.
This is essentially how a Blockchain operates.
According to Indeed, Chennai is one of the top five cities to lead in Blockchain employment in the country. Being an already established IT hub, Chennai offers a ripe ground for Blockchain tech. Since Blockchain is no longer constrained to the BFSI sector, it is creating ripples in other industries in Chennai as well, including education, healthcare, logistics, and public administration.
Numerous Blockchain-based companies and enterprises have cropped up in Chennai, further enriching the foundation for Blockchain tech in the city. Naturally, the demand for skilled and qualified Blockchain experts is rising in Chennai. Together, these two factors are the primary drivers of the growth of Blockchain courses in Chennai.
Chennai has a flourishing industrial scenario backed by a strong economic ecosystem. It is also one of the fastest-growing cities in the world. The robust economy and the constant push for tech-driven innovation make Chennai a prime location for Blockchain.
Blockchain Salaries in Chennai
Just as is true of all major cities in India, the salary of Blockchain experts in Chennai depends on the firm’s size and reputation, job position, skill set, and work experience. On average, a Blockchain fresher in Chennai can make around Rs. 2.8-4.5 LPA. Professinals who have over 8-10 years of experience can earn a yearly remuneration of Rs. 8-16 LPA. As for senior-level professionals in the field having over 15 years of experience, the salary scale ranges anywhere between Rs. 30-65 LPA and more.
Blockchain Career Options in Chennai
Candidates who aspire to build a Blockchain career In Chennai can opt for job roles like Blockchain Developer, Blockchain Engineer, Blockchain Architect, Blockchain Legal Counsel, Blockchain Product Manager, and Crypto Community Manager, to name a few.
Since Blockchain is a relatively new field with little formal educational resources present, you will need to be patient and understand that it might take you some time. However, there are plenty of dedicated online communities and so, you aren’t completely helpless either. Begin with these steps:
- Read about Bitcoin since it is one of the most elegant applications of Blockchain.
- Learn how exchanges work and familiarize yourself with wallets.
- Get coding in a Blockchain-friendly language like C++, C#, Javascript, etc.
- Get to know about smart contracts.
- Be part of a Blockchain community to stay up-to-date!
Below listed are 5 revolutionary uses of Blockchain:
- Banks - transactions can reflect in as little as 10 minutes. Secure funds exchange.
- Cryptocurrency - allows cryptocurrencies to operate without the need for a central, governing authority.
- Healthcare - enables the secure storage of patient records with a private key so that they are accessible only to select individuals.
- Property records - property ownership records can be verified and stored.
- Smart contracts- computer codes that can act as a mediator in a contract agreement.