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.
Being India’s capital, Delhi has massive scope for technological and industrial advancement. In fact, today, Delhi is one of the major tech hubs in the country with a flourishing tech startup scene. Home to 13 unicorns and nearly 8,500 startups, Delhi is India’s Startup Capital.
Delhi and the NCR area, particularly Noida, Gurugram, and Mohali are some of the key areas of tech buzz. Together, these areas create a substantial demand for Blockchain experts. Additionally, the central government’s persistent efforts towards digitization and digital transformation is further providing a solid foundation for the growth of Blockchain technology in Delhi. NITI Aayog’s pilot Blockchain project, IndiaChain, is an excellent example of how the government in supporting the growth of Blockchain in India.
Delhi has become a breeding ground for startups that are experimenting with emerging technologies like Blockchain to create practical solutions to the challenges that we face today. In light of this scenario, the scope of Blockchain seems to be highly promising in the national capital.
Blockchain Salaries in Delhi
Going by Indeed stats, the average salary of Blockchain Developer in Delhi and the NCR is around Rs.6,92,939 to Rs. 8,00,318 LPA. Of course, the salary of Blockchain professionals in Delhi depends on a candidate’s skill set, the size and reputation of the company, the job position, and work experience.
In Delhi, the starting salary of a Blockchain fresher is usually around Rs. 2-4.8 LPA. Those who have more than ten years of Blockchain experience can make anywhere between 6-13 LPA. Senior-level Blockchain experts having around 12-15 years of experience can earn as high as Rs. 30-60 LPA, or even more.
Blockchain Career Options in Delhi
Anyone aspiring to become a Blockchain expert in Delhi can look out for job positions like Blockchain Developer, Blockchain Engineer, Blockchain Architect, Blockchain Web Designer, Blockchain Product Manager, and Crypto Community Manager, among other things.
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.