What is Blockchain Technology?
A simple example to understand Blockchain Technology is Google Doc. Just think when we create a document and share the document with others people, and the document is distributed rather than copied or transferred.It create a type of loop which distribute the documents at the same time between everyone. No one is locked in waiting for changes from another party, while all modifications to the dock are being recorded in real time, making the changes completely transparent.
It is a type of record keeping technology.If you are familiar with banking ,then you have listen about “Blockchain” as a record keeping technology. Blockchain introduced about last 10 years and people know this technology from few years.
Blockchain is a simple yet simple way of passing information from A to B in a fully automated and secure way. A party initiates the process by creating a block for the transaction. This block is verified by thousands, with perhaps millions of computers distributed around the net. The verified blocks are added to a chain, which is stored on the net, creating not only a unique record, but a unique record with a unique history. Falsifying a single record would mean falsifying the entire series in millions. it is almost impossible.
History of Blockchain Technology
Blockchain is a new technology.But rather than it has a rich and interesting history .Following are the….
Satoshi Nakamoto Person or a group first introduced ” Bitcoin:A peer to peer Electronic Cash System.”
The first successful transaction happens between computer scientist Hal Finney and the mysterious Satoshi Nakamoto.
A programmer from Florida first time purchase using the bitcoin – that is two Papa John’s pizzas.
- Wikileaks and other organizations start accepting Bitcoin as donations.
- 1 BTC = $1USD, giving the Crypto currency parity with the US dollar.
- In show in add or shows like The Good Wife .
- Bitcoin magazine launched by the developers name Vitalik Buterin .
- Bitcoin market surpassed $1 Billion.
- Bitcoin reached $100/BTC for first time.
- Gaming company Zynga, The D Las Vegas Hotel and Overstock.com started accepting Bitcoin transactions.
- PayPal announces Bitcoin integration .
- R3, a group of over 200 blockchain firms ,formed new ways to implement blockchain in technology.
- Number of merchants accepting BTC exceeds 100,000.
- NASDAQ and San-Francisco blockchain organization Chain collaborate to test the innovation for exchanging shares privately owned businesses.
- Legislature of Japan perceives the authenticity of blockchain and cryptographic forms of money.
- Bitcoin reaches $1,000/BTC for first time.
- Cryptocurrency market cap reaches $150 billion.
- Bitcoin reaches its all-time high at $19,783.21/BTC.
- Dubai announced it’s bitcoin powered by -2020.
- Facebook focuses on beginning a blockchain gathering and furthermore alludes to the chance of making its own cryptographic money.
- IBM builds up a blockchain-based financial stage with huge banks like Citi and Barclays marking on.
How does it work?
It simply work on three concepts:
When the first block of a chain is created, a non-cryptographic hash is generated. Until it is mined the data is signed in the block and is always tied to nonce and hash.
Every chain consists of multiple blocks and each block has three basic elements:
- The data in the block.
- A 32-bit whole number called a nonce .
- The hash is a 256-bit number wedded to the nonce.
It is one of the most important thing in blockchain technology. No computer or organization can own a chain. Instead it is a distributed ledger through nodes connected to the chain.
Every node has its own copy of the Blockchain and the network will approve the algorithm and update it, and validate any newly mined blocks for the chain. Since Blockchains are transparent, every action in the book can be easily checked and viewed. Every person has it’s own unique alphanumeric identification number which shows their transactions.
Linking public information with a system of check-and-balance helps blockchain maintain integrity and instill trust among users. Essentially blockchains can be thought of as scalability of trust through technology.
Each block in a blockchain has its own specific non and hash, but the chain has a reference to the hash of the previous block as well, so mining a block is not easy, especially on large chains.
Uses of blockchain
Blockchain can simplify data management by creating a reliable digital ledger, to which all parties agree. For example a blockchain for government information can help open part bodies that keep a checked record of authentic information that may can be gotten to across offices.
Real time uses of blockchain
- Payment processing and money transfers
- Monitor supply chains
- Retail loyalty rewards programs
- Data sharing
- Decentralised Internet
- Smart Contracts
- Distributed Cloud Storage
- Encrypted Messaging
- Real Estate
Is Blockchain Secure?
Blockchain technology is responsible in some ways for security and trust issues. First, blocks are always stored chronologically. That is,why they are always added to the “end” of the blockchain. If you’re taking a glance at the blockchain of bitcoin, you’ll see that every block features a chain, called “height”. As of January 2020, the peak of the block was 615,400.
After a block is added to the top of the blockchain, it is very difficult to travel back and alter the contents of the block. this is often because each block has its own hash, along side the hash of the block. That Hash codes are created by a math function which converts digital information into a string of numbers and letters. If that information is edited in any way, the hash code will be also changes.
Here is why it is important to possess security. Suppose a hacker tries to edit your transaction from Amazon in order that you really need to pay twice for your purchase. As soon as they edit the dollar amount of your transaction, the hash of the block will change. Some suspected block within the series will still be the old hash, and therefore the hacker will need to update that block to hide their tracks. However, doing so will change the hash of the block. And next, and so on.