Explore blockchain | blockchain technology explained
What is blockchain
So the blockchain actually is the technology that enables moving digital coins from one to another individual. Today we are going to talk about blockchain.
It is just like a common language why the problem that blockchain attempt to solve is the money transfer for example if person A likes to transfer money to person B let’s say from India to the UK. This is typically done using a third-trusted party.
It typically works as follows a says, I want to move the transfer to B and order the third party to transfer money to B. The trusted party identifies to be in the UK identify as a person and the bank account and then moves the money after taking some free to the right account in the UK. This typically takes about 3 days or more but it takes some.
The problem that blockchain is attempting to solve
1. As to transfer money without the trusted entity.
2. To do it faster than 3 days immediately.
3. To do it cheaper than the fee that the third party collects.
Blockchains store information across the network of a personal computer making them not just decentralized but distributed this means no Central company person owns the system. Yet everyone can use it and help run it. This is important because it means it’s difficult for any one person to take down the network or corrupted it.
The people who run the system use their computer to hold bundles of records submitted by others known as blocks In a chronological chain the blockchain uses a form of a map called cryptography to ensure that records can’t be counterfeited or changed by anyone else.
Bitcoins use blockchain by tracking records of ownership over digital cash. So only one person can be the owner at the time and the cash can’t be spent twice.
Blockchain technology
Bitcoin is the most famous application of the blockchain. Bitcoin is actually based on the technology that is blockchain. A blockchain is a global online database that anyone, anywhere with an internet connection can use.
Unlike traditional databases, which are owned by central figures like banks and governments, a blockchain doesn’t belong to anyone. Moreover cheating the system by faking documents, transactions and other kinds of precious information becomes near impossible.
Bitcoin is basically a digital currency that is created and held electronically. You can exchange bitcoins with anyone, whether you know them or not. People move their digital money by validating other people’s bitcoin transactions. Whereas block-chain verifies the ownership of this digital cash.
Working of blockchain
As it stores the information permanently across a network of personal computers. This not only decentralizes the information but distributed it too. So how does blockchain stay relatively hack-proof?
The answer is millions of blockchain users, as they make it difficult for anyone to take down the network or corrupt it. Many people online run their system using their own personal PCs to hold bundles of records submitted by others.
The records are known as blocks. Each and every block has a time span and a link to a previous block, thus forming a chronological chain. In this chain, you can view or add the information, but can’t make changes to it.
The blockchain enforces this by using a form of math known as cryptography. That simply meant that records or data can’t be altered by someone else.
