Trust is the wholesome thing and involving this certainty the blockchain is also evolving and booming. When we go through normal news or happening in the world, we would have heard about the word Blockchain. But it’s hectic to find the right or simple definition to understand.
What is Blockchain ?
Perplexed ? Don’t worry !
Let’s consider a scenario. If you have to send money to your friend, then you have to rely on the bank for the transactions. So both the sender and the receiving party banks stores the data of transaction with explicit details.
So here for money, we TRUST the third party bank servers and centralise all the data, not to mention that’s how it got designed.
But Blockchain says that “Iam Decentralised or Distributed network, which is immutable, automated and secured platform”
Pretty good right ? with so much of benefits!
Decentralised : To spill the beans to the point, consider you have a Excel-sheet and maintaining all the transactions with explicit details. When it comes to blockchain, the sheet is distributed to different networks of computers. So everyone has a copy of that. So blockchain acts as a public transaction ledger.
Immutable / Automated : The excel sheet can be only accessed by every network but no one can edit or delete a particular transactions, Also with some contracts of coding the transactions gets automatically updated when mining done.
Secured : As it is decentralised and immutable with transparency it’s almost secure. But furtherly here the transaction happens with the hash concept. So absolutely it becomes more secured one when it is cryptographically maintained.
(Mining and Hash concept is different concept related to digital transactions)
Consensus : Based on the harmony or the consensus the data get updated in the blockchain. As no third party is involved here the ledger gets automatically updated when the transaction meets the consensus rules and regulations.
Blockchain is a technology which is conceptualised only in 2008 to do digital money transactions with encryption. But right now influenced by many more industries.
Even the names explain the meaning,
- Block – The data get stored in the Block.
- Chain – All the data stored block is connected in chain protocol.
The very first block in the blockchain is called Genesis or zero block. This is the initial part of the bitcoin trading, When the transactions is done and a block is completely stored, it gets connected to the next block. The connection between the first and the second one will be the hash function. This continuation of blocks keeps on rolling out to extend with the hash functions.
Because of the higher benefits this technology has been spreading into multiple industry, get to know about things in this blog “Blockchain technology impacts in multiple industries”
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