Blockchain technology was created by the unknown persons behind the online cash currency bitcoin, under the pseudonym of Satoshi Nakamoto. Blockchain is being called a revolutionary modern innovation. Blockchain technology has evolved a lot since the first bitcoin software was released in 2009. Digitally allocated information (not copying)- this blockchain technology has created a new type of Internet system. Although blockchain was invented only for digital currency Bitcoin, its practicability is now being tested in various fields of technology.
Best explanation of blockchain
Let me say at the beginning that blockchain is a secure and open way to store information. In this method, the data is stored in different blocks one after the other in the form of a chain. It is an irreversible digital transaction that does not only apply to economic transactions. Any operation can be recorded using this technology but also a distributable database that records all transactions between the participating parties. Each transaction is again verified by the majority of the system. Once any information is entered into the ledger, it remains permanently and can never be deleted. The blockchain consists of a verifiable record of every single transaction. This built-in technology works perfectly and can be applied to a variety of tasks.
Since blockchain technology can be used to verify small digital information without compromising the security of digital information, it is possible to bring about a radical change in the digital world by proper implementation of it. An important application of blockchain technology is the “Smart Contract”. It is a computer program that can automatically execute the terms of a contract and another reliable application is the control of property ownership using this smart agreement, which is called “Smart Property”.
Databases blockchain technology is super allocated and universal. It is not located or stored in any single place or dimension. All the records it stores are open souced for individuals and easily verifiable. It is also free from the risk of hacking as the data is not centralized. Blockchain databases work depending on the majority. At the same time, every transaction is automatically verified within ten minutes. These transactions are called blocks. The integrity or accuracy of a database cannot be compromised by altering the information of a database that validates the transparency of the database.
As blockchain technology becomes decentralized, many sequential tasks get cross-connected. For example, stock-market transactions can occur simultaneously using this technology or land registration records can be made much more accessible and convenient to the public.
Blockchain is a technology that is very secure and fast. It is impossible to alter the transaction data that you make using blockchain. Suppose you make a payment to someone using a blockchain, then your information immediately reaches all the computers connected to this system and to give the information validity, the dendrite of the previous transaction will be added to your transaction. This way the hash of your transaction will be linked as the synapse of the next transaction and the chain system continues.
Alright, to know this you must first know what’s in each of these blocks. Every single block is a complete blockchain consist of basically three things – data, hash and hash of the previous block in the chain. This means each block in the blockchain contains the block’s dataset, the block’s hash, and the hash of the previous block linked just behind it. I think we all know what is data, but what is the Hash? Hash is an identifier. The hash of each block is unique and predetermined for each – the hash of two blocks can never be the same. This is a lot like a human fingerprint. As the fingerprints of two people can never be the same, the hash of two blocks can never be the same. These hashes are generated according to the data stored in each block. This means that if the data of a block is changed in any way, then the hash of that block will also get changed automatically. Now think about why each block keeps and is linked with the hash of its previous block. Since each block also contains or prints the hashtag attached to it, no one will be able to change the data of any block. So it is almost impossible to delete or change every data entered in the blockchain. Because, in this case, if you want to change the data in a block, you have to change the data of all the previous blocks with that block, otherwise the whole blockchain will be invalidated or will not work anymore.
How does Blockchain work?
I believe now you know, how blockchain technology ensures security but another big reason why blockchain is secure is as its network is distributed. Blockchain basically creates a P2P network where the data of each block of the blockchain can be verified by any person connected to the Internet. When a new person registers on this blockchain network, he receives a copy of all the blocks in front of him and all his previous blocks and he verifies each block and makes sure that every data in the blockchain is still correct. The more each block in a blockchain is verified, the more irrevocable the data it becomes. This is basically how blockchain technology continues to develop and establish. We all know that bitcoin transactions are based on blockchain technology. Let’s see, how does it work?
Suppose, you have 5 bitcoins in your wallet and you want to send me 2 bitcoins from there. In that case, this amount will be transferred from your wallet to my wallet. When you send the bitcoins to my wallet address, a new block will be created in the blockchain with all the details of this transaction. The stored data of this block will be the sender wallet address, the receiver, my wallet address and the amount of bitcoin you will send etc. This new block will disclose to all the individuals for verification of those who are connected through the system. When they all verify this block or confirm that everything is OK, this transaction record will remain permanently in the blockchain and eventually the transaction will be completed. When it’s about Bitcoin, those who do the act of verifying these blocks are called Bitcoin Miners. Most of the fees you have to pay to process this transaction will go to Bitcoin Miners, who have used their hardware to mine Bitcoin or verify this block. Now you must have got a clear idea of how blockchain works and why miners can earn bitcoin by mining bitcoin.
The popularity of blockchain
You can easily guess from the above information it is almost impossible to hack blockchain either you are not using a quantum computer. You can complete your transaction within a short time. As a result, the popularity of blockchain is growing day by day. However, its success began with cryptocurrency transactions but plans are afoot to use it for many purposes. As such some banks are conducting tests for its use and worldwide research and development on its applications growing day by day.
Very soon blockchain is going to become more and more normalized as the gold standard – for security and stability, at least. Undoubtedly as a base for currency, it will face many challenges, but most large banks now have departments specializing in cryptocurrencies, and some are considering building their own private blockchains.