Blockchain Technology explained - You need to know | Homeesolution

Blockchain – Technology explained – You need to know | Homeesolution

Blockchain, a term you must have heard very often now-a-days if you have been following technology, finance or cryptocurrency in the past few years. But what is Blockchain? Is it any type of currency or a stock?

Let us explore more about blockchain today, we will have a complete walkthrough about it in this article. So read this post till the end to get a detailed understanding about, What is blockchain? Where is it used? How will it be useful for you?


What is Blockchain?

Blockchain was invented in 2008 by pseudonymous Satoshi Nakamoto for operating Bitcoins, the idea was to develop a system which is secure, easy manageable and free from any central authority(like banks or FIs) for transferring of funds. The technology was such developed that the transfers can be done at any time any where in few seconds and at a very cheap cost.

The word blockchain may seem very complicated to understand, but it is actually not if you get into knowing the concept from core. Blockchain is simple collection of information with such an encryption that the information collected in the database is secured and difficult to be hacked and changed.

The term database means storage of electronic information in computing system in a tabular format, which can retrieved easily with an input query. The blockchain is a technology which is used in storage of crypto data.

The blockchain is a modern technology database in which the data is structured in form of a block, unlike the normal computing database. The main purpose of the blockchain technology is to secure the transaction information in the blocks.

The blocks that store the information have a certain storage capacity, when the capacity is filled the data is chained to the previous block thus forming a chain like system. Every block in the system stores a number of transactions and with every new transaction in the blockchain, a record is added to the ledger of contributor.

Each block is formed with 3 main characteristics, the first is the data layer where in the information is stored, second is the unique identity of the block known as #(hash), third is every block in the chain stores the #(hash) of its succeeding block.

The blockchain is a decentralised database system in which each block in the chain is defined with particular irreversible timestamp to be managed by the contributor, it is called as Distributed Ledger Technology(DLT). If any of the block in the chain system is hacked or tampered, it will be apparently be identified of changes made.

This means if any hackers intend to corrupt any of the blocks for stealing, simultaneously they will have to alter all the blocks in the chain and across all the distributed versions.


What is decentralization?

Decentralization system is a system which is not monitored or controlled by any central authority or system, all the transactions executed in this system are peer-to-peer transactions. The database is managed by particular collection of computing systems implemented not centrally but at various geographies for transactions to be authenticated.

For example: If suppose if we transact in Bitcoin, as a crypto Bitcoin needs some database for storing the blocks in which the transactions ever made are present. So all the computers holding the transactions are not stored under a single roof. All the computers are operated by different individuals at different locations are called as nodes in the blockchain term.

Ideally the blockchain technology was developed for operating without any central authority interference(i.e bank or controlling authority), but the transactions needed to be authenticated for value. Hence the value of the crypto transactions is authenticated at each node with cryptographics, i.e password like string of data that identifies the users to execute peer-to-peer transactions from their wallets/accounts.

If any of the node faces any error the transaction will be executed using thousands of other nodes in the network of the blockchain technology. Hence, if any hacker alters any of the nodes the information will be securely processed, as the blockchain stores history of each transaction.

If any of the blocks or nodes in the blockchains network get hacked or tampered by any means, the other blocks based on the history of the data cross-reference with each other and eliminate the corrupted block to accomplish the correct information.

Cryptos such as Bitcoins and other blockchains are growing and constantly being operated thus adding more blocks in the system, which eloquently adds more security to the ledger.


Conclusion

Hope you agree with us that blockchain will be a future technology we would see and everyone would like explore it for the betterment of mankind. Do share your thoughts on how much did you understood blockchain till now and how you see it in the coming years.


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