What is a Blockchain? Why is it so popular? How it can (revolutionise) the world?

What is a Blockchain?

What is a Blockchain?– A blockchain is basically like a distributed ledger which stores the database of assets and transactions done across a peer to peer network. You can think of a blockchain as an open infrastructure that can store various types of assets.

Let me take this to a simpler level that “What is a Blockchain?. Imagine you have to make a transaction of $10 from A to B. Now, in normal scenarios what happens is that transaction takes place through a third part app or payment processing system. First, A’s bank will identifying the details of B’s bank. Once that is done, then with the help of a payment processing service A’s bank will initiate a money transfer to B’s bank with a certain amount of deductions. Both banks will record transaction at their end. However a transaction fees is charged and B receives something like $9.95. The process is fully secure and have many checks in place to ensure that it stays secure and accurate, but even then there are some basic fundamental issues with the transaction process:

  • Delay in process
  • Dependency on a single intermediary whose effectiveness in never 100%
  • In case of any gap in the transaction, no one takes the responsibility and people keep on blaming each other.

What is a Blockchain? “Blockchain is a distributed database that maintains a continuously growing list of data records, chained together against revision and tampering.”

 

Blockchain first came into existence after Bitcoin was popularised that is in 2009. It was devised as a database for Bitcoin implementation.

Blockchain technology is a shared and distributed ledger of all kinds of assets, be it tangible or intangible. It is one big incorruptible database that records all the transactions virtually of value.

One block represents a record of the recent transaction. After one block is completed, it is added linearly to another block having other records. This process, when repeated over and over, forms a Blockchain.

How Blockchain eliminates these problems?

Consider if there is a system where you no longer have to worry about these problems faced. You just need perform a transaction and there are people who are sitting and validating your transaction every second.

The validation mechanism is called as Proof of block and this is done based on the public key provided for the encrypted data, and it is done by all listeners in the peer-to-peer network. And these are real people, not bots. Since there is not a single transaction validating authority, i.e. no centralized transaction service, the process is effectively decentralized.

Once again, few people are specified and aligned to validates the transaction. The transaction details are stored in the form of a block, and that block is added to the existing ‘blockchain’. Hence the name, blockchain.

Moreover, the blocks once validated and added are immutable. These blocks have a specific hash associated with every block. In a simple layman language, you can say that hashes are like hand fingerprints, which are unique to every block.

The persons validating the transaction process are called as miners. More the number of miners, better the efficiency of transaction.

A block in all contains of data, a hash and a hash of previous block. Since it includes the hash of previous block, hence in a blockchain all the blocks contain data for the previous blocks so it becomes almost impossible for a blockchain to be corrupt.

To know about What is a Blockchain?” via video, please use the below mentioned links:-

 

What is a Blockchain? Why do you need Blockchain? How Blockchain can ‘revolutionise’ the world?

  • It rules out the involvement of the third party so it is highly cost-effective and fast way of exchanging assets.
  • The system is decentralised hence there is no common point of failure in this system. This means malfunctioning at a single point will not affect others on the network.
  • The whole process is immutable, and no one can alter or delete the data once written.
  • Any changes made in the Blockchain will be visible to all its participants. This makes is highly transparent as well.

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What is a Blockchain?

There are many industries that have a scope of incorporating the Blockchain technology. I have listed some of them below for your understanding:

Music Industry:

The artists can really benefit from this technology by cutting the hefty cuts of financial brokers and creating a possibility of dealing directly with the consumers. It means a user can directly pay an artist upon downloading his song instead of indirectly paying it through the third party.

Elections:

This can ensure a secure environment for voting. Beginning from registering the candidates, to the counting of votes, everything can be verified and protected from tamper.

Healthcare:

This can create a secure platform for storing patient’s medical records. It can also prevent healthcare payment related frauds.

These were some of the many applications of Blockchain Technology, other than Bitcoin.

What is a Blockchain? Blockchain is a backlinked, decentralized and distributed-database of encrypted records

To sum it up, it’s worth mentioning that blockchain technology offers extensive business opportunities. The blockchain significantly reduces fees, eliminates counterparty risks, and can withstand malicious attacks.

Blockchain technology also ensures transparency and immutability, as well as empowers its participants by offering them control over their transactions and data.

What is a Blockchain? “Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value”

Eric Schmidt, CEO of Google

IBM’s Blockchain Used by 400+ Companies

 

 

However if you do TL:DR; Learn C++, Node.js, Web3 and Solidity and you will be good to go.

 

Also look for my other Posts on cryprocurrency:-

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