How to Start a Career in Blockchain Technology

Are you looking to start an exciting new career in blockchain technology?

​​Blockchain is a revolutionary technology that is popularly known as the backbone of digital cryptocurrencies, which have been generating incredible hype in the last decade. It gained attention after a group or individual using the pseudonym Satoshi Nakamoto introduced Bitcoin in 2009. From that point on, blockchain has unfolded into a great technology that has attracted the attention of an increasingly large amount of people.

Most people who lack familiarity with blockchain confuse it for Bitcoin. However, Bitcoin is the application that introduced the world to blockchain technology for the first time. Blockchain technology has a growing number of uses in today’s digital era. Just like you may not necessarily know what propels a car, you don't have to know the blockchain operation to use it. However, learning about blockchain and getting a grasp on its basics is not only a good idea, but it can also boost your chances of starting or enhancing your career in blockchain technology.

What Exactly is Blockchain Technology?

Ten years ago, Blockchain was combined with other innovative technologies to generate cryptocurrencies, beginning with Bitcoin, the first Blockchain-based cryptocurrency. That was the first instance when Blockchain was successfully integrated and executed. Mr. Alex of Blockchain Research Institute, who authored Blockchain Revolution 2016, states that “Blockchain is a trustworthy digital ledger or a distributed database that keeps track of transactions and can be programmed to record not only financial transactions but also everything else that has worth.”

In layman’s terms, Blockchain is an encoded, dispersed database that records data similar to a computerized record of any exchanges, transactions, contracts, etc. One of Blockchain’s major highlights is that it’s an automated record that’s widely available over a large number of PCs. This means that Blockchain is accessible across a plethora of computer systems and doesn’t need to be tied down to a single place. Blockchain has started impacting the financial and technical sectors drastically by utilizing digital currency like Bitcoin, smart contracts, and other innovative and revolutionary applications.

Blockchain is useful for the protected transfer of items like property, money, contracts, and so on without any third-party intermediary, such as a bank or government agency. Once the information is recorded inside a blockchain, it is impossible to change it, thanks to its stable features.

All the information in a blockchain is chronologically stored and the central authorized organizations typically do not handle any of it. Blockchain technology becomes a valuable tool in the economic sector as the users directly access and conduct transactions without the involvement of any third party. Such transactions are carried out securely by encrypting user information. The primary benefit of blockchain technology is that it rarely faces data breach issues.

Why There Is So Much Hype Around Blockchain Technology?

There are plenty of claims regarding Blockchain’s actual potential. The distributed ledger database has been regarded as a game-changer, with many individuals staking their reputations and fortunes on it. Claims have been made about its ability to aid in increasing transparency in the health and manufacturing sectors, as well as reducing fraud for enterprise applications, such as financial systems or for that matter, any system involving centralized control. Actualizing Blockchain innovation in the thriving shared economy could diminish the requirement for focal control.

Blockchain proves its capability by bringing simplicity and immutability to the process of accessing information. The potential for smart contracts, as well as the opportunity to make new business models, should inspire business heads to review the fundamental aspects of their business in the context of Blockchain. Features like trust, immutability, privacy, and reliability make Blockchain appropriate for every industry. Blockchain technology is going to be a relevant subject of conversation for many days to come.

How Does Blockchain Technology Work?

In simple words, you can think of Blockchain as a Google spreadsheet that a vast number of worldwide systems share. The spreadsheet is connected to the internet, and every time a transaction takes place, the details are recorded in the spreadsheet. Anyone with a computer or mobile device can access the spreadsheet after connecting via the internet. Also, anyone accessing the spreadsheet can view or add transactions in the spreadsheet, but cannot edit the information already present in it.

Let’s Recall a Few Important Features Before We Get into the Details

Blockchain technology maintains a record of entire data exchanges. In the world of cryptocurrency, the transfer of each dataset is called a transaction, while the data where all transactional records are stored is called a shared ledger. Each completed transaction is included as a block in the ledger.

Every transaction is confirmed using a distributed system — a peer-to-peer network of nodes. It also uses the consensus algorithm model for transactions. The consensus model consists of specific objectives that are used in Blockchain to create equality and fairness in the online world. The following are some of the objectives of Blockchain’s consensus model:

• Coming to an agreement

• Collaboration

• Co-operation

• Equal Rights

• Participation

• Activity

Once the digital transaction happens and it is added to the distributed ledger, it becomes almost impossible to alter the data at a later time.

To start with, we need to unfold the theory of “keys.” You are provided with a set of cryptographic keys for your identity. One of the keys is called the private key, and the other is the public key. They are combined to give you a digital signature.

Your public key is like a notice that enables others to recognize you. The private key gives you a digital identity to authorize a transaction. However, to authorize any complete Blockchain transaction, you have to use both private and public keys jointly.

In the cryptocurrency world, the wallet address (public key) signifies you, and your private key helps you to authorize transfers, withdrawals, or perform other actions with your digital property, such as cryptocurrencies. Hence, it is imperative to protect your private key or else anyone who can access it would have complete authority to corrupt any of your digital assets that are associated with the public key.

Whenever a transaction happens, the user with a private key is authorized by default. For instance, in the transaction “Bob is sending Rex 0.4 BTC”, he adds Rex’s address (public key), and puts in the digital signature that he is using both private and public keys.

This transaction is updated in the blockchain ledger as “Bob sent to Rex 0.4 BTC”, and it is given a unique ID number and timestamp to indicate the time the transaction occurred. As this transaction occurs, it’s transmitted to a peer-to-peer network of nodes, which are essentially other digital entities that acknowledge that the transaction has occurred, and thus, they should be added to the ledger. This alerts other digital entities to the completed transaction and suggests the same be updated in the digital ledger.

Conclusion

Though Bitcoin is the most successful implementation of blockchain technology, it has much broader and has more significant potential than just cryptocurrencies. It might be a new technology for some people and organizations, but it’s on the verge of creating a revolution in the world of technology and finance.

While some industries have started using blockchain in various sectors, there are plenty of others who are only now finding out the possibilities. Many applications are being tried and tested each day, adding to this exciting technology. And once these applications are made live for the global audience, blockchain will reshape the technology and lives of the people for good.