Have you heard about Blockchain? It’s one of the tending buzzwords in technology right now. What blockchain exactly is? Why people around you discussing it?
To understand this let’s start from the beginning.
The technology, which was invented in 2009 a year later after bitcoin was invented. Bitcoin is a cryptocurrency and blockchain is the technology that makes it work. A cryptocurrency is a digital coin that runs on blockchain.
It’s one of the most disruptive technology in decades.
You might be thinking what it is all about. It’s a pretty simple concept
What is Blockchain?
The blockchain is a distributed peer to peer ledger. It means that the ledger can be written onto with new information but previous information stored in blocks cannot be edited, adjusted or changed. Each time when a transaction is made it time-stamped and linked to a previous one.
Each digital record or transaction in the thread is called a block, and it allows either an open or controlled set of users to participate in the electronic ledger. Each book is linked to a specific participant.
The blockchain isn’t a single technology. Rather it’s an architecture that allows disparate users to make transactions and then creates unchangeable records of transactions.
It has the ability to transfer any item of value across participants’ example Cryptocurrency, intellectual cars, and property. But the transaction is only declared valid only after it has been cleared by a majority of participants in the network.
The blockchain is the underlying technology behind bitcoin.
Here a Question arises Is Bitcoin and Blockchain same?
The answer is NO!
The blockchain is simply an application of Bitcoin just like the internet and Facebook. The internet isn’t Facebook; Facebook is just an application of the internet rather it surrounds bitcoin. In this example, you will be knowing that what it’s all about.
Features of Blockchain
Disintermediation & trustless exchange: – No Intermediary bank, a self-supported and verified network which makes the process safer(Decentralized).
- Empowered Users: – Users are in control of all their information and transactions.
- Process Integrity: – Users can trust that transactions will be executed exactly as the protocol commands removing the need for a trusted third party.
- Transparency and Immutability: – Changes to Public block chains are publically viewable by all parties creating transparency and all transactions are immutable, meaning they cannot be altered or deleted.
- Faster Transactions: – Blockchain transactions can reduce transaction times to minutes and are processed 24/7
- Lower transactions costs: – By eliminating third-party intermediaries and overhead costs for exchanging assets. Blockchains have the potential to greatly reduce transactions fees.
The Internet of value Blockchain
Building a decentralized public ledger is another way to describe blockchain as the internet of value. It has arisen from a very simple idea: the Internet made it possible to freely distribute data online, blockchain does the same thing for money. Blockchains and cryptocurrencies have made it easy to transfer money across the world by eliminating the middleman like banks, Governments etc.
Bitcoin has been called “digital gold,” and for a good reason. To date, the total value of the currency is close to $9 billion US. And blockchains can make other types of digital value. Like the internet (or your car), you don’t need to know how the blockchain works to use it. However, having a basic knowledge of this new technology shows why it’s considered revolutionary
How secure is the Blockchain
As we hear many times that blockchain is un-hackable. It’s not like that its hackable but not economical.
blockchain’s simple topology is the most secure today, according to Alex Tapscott, the CEO, and founder of Northwest Passage Ventures, a venture capital firm that invests in blockchain technology companies.
“In order to move anything of value over any kind of blockchain, the network [of nodes] must first agree that that transaction is valid, which means no single entity can go in and say one way or the other whether or not a transaction happened,” Tapscott said. “To hack it, you wouldn’t just have to hack one system like in a bank…, you’d have to hack every single computer on that network, which is fighting against you doing that.”
Here’s an example: – The bitcoin blockchain harnesses anywhere between 10 and 100 as much computing power compared to all of Google’s serving farms put together.
So it’s not un-hackable but better than all other systems available.
Blockchains are Transaction ledgers, Immutable, Decentralized, Trustless(it’s not a system based on trust), secured by cryptography and can be made public.
So this was the basic into to Blockchain I will tell you more about it in my upcoming posts stay tuned. Also, if you have any query you can contact me.
Google search, Blockchain.com, IBM Blog, Blockgeek.com and myblockchainblog.com