A revolutionary technology that has changed the traditional ways of business is the Blockchain. But, what does it mean? Why is it such a hot topic between your family and friends? And, how does this thing even work?
Well, let’s break it down.
What is Blockchain?
The blockchain is a leader that records all the transactions and data on a dispersed business network. In the year 2008, a mysterious person who used the name Satoshi Nakamoto revealed a whitepaper named “Bitcoin A Peer to Peer Electronic Cash System” and gave birth to the blockchain.
Initially, the blockchain was only a medium to exchange and transfer cryptocurrencies such as bitcoin according to CNBC. The first breakthrough of the blockchain technology was when it released an application known as, bitcoin in the year 2009.
But, what is bitcoin? It is a cryptocurrency (digital currency) that doesn’t have a specific bank or an administrator and can be sent or transferred from individual to another individual on its network.
Most people still think bitcoin and blockchain are the same things. But, they are not!
But fast forward to now, blockchain is more than just a parent of bitcoin. Blockchain can record and store almost any data.
There are mainly two types of blockchains, which are public and private blockchains. Public blockchains are accessible to anyone who is a part of the network’s consent. Meanwhile, a private blockchain has limited access to one or a group of employees.
How Blockchain Works:
The data on the blockchain is not under the control of any single authority.
However, the blockchain is regularly updated and maintained by a set of people (miners) of the shared network. Such people are always working to figure out solutions to challenging mathematical problems so that a transaction can smoothly pass through.
The blockchain also provides every transaction with a private key, also known as the digital signature.
Every single transaction made are stored in blocks. Every block contains vital information and is managed according to the strong cryptographic rules.
With the help of daisy-chained data blocks, the blockchain records and verifies each transaction. Each block of data includes a hash, which provides extra security.
Your data remains secure against any hackers because everything is connected. Additionally, a unique key belongs to every record and transaction made.
RECAP :
- The blockchain is a leader that records all the transactions and data on a dispersed business network.
- In the year 2008, a mysterious person who used the name Satoshi Nakamoto revealed a whitepaper named “Bitcoin A Peer to Peer Electronic Cash System” and gave birth to the blockchain.
- The first breakthrough of the blockchain technology was when it released an application known as, bitcoin in the year 2009.
- Blockchain can record and store almost any data.
- The data on the blockchain is not under the control of any single authority.
- Your information remains secure against any hackers because everything is connected.
