#BLOCKCHAINSIMPLIFIED #BLOCKCHAINEXPLAINED #WHATIS BLOCKCHAIN #BLOCKCHAINUSECASES
Blockchain can be described as a collection of records or data linked with each other, strongly resistant to alteration, and protected using cryptography. In other words, blockchain can be seen as a public ledger of cryptocurrency that is open source, which can be seen by users but can’t be altered.
Cryptocurrencies are a form of digital or virtual currency that runs on a technology known as the blockchain. Blockchain cryptocurrencies are immune to counterfeiting, don’t require a central authority, and are protected by strong and complex encryption algorithms.
A hacker will not be able to alter the data in the blockchain, because each user has a copy of the ledger. The data within the blocks are encrypted by complex algorithms. All of this is made possible with the help of blockchain technology.
BLOCKCHAIN SIMPLIFIED | BLOCKCHAIN EXPLAINED | WHAT IS BLOCKCHAIN | BLOCKCHAIN USE CASES.
HISTORY OF BLOCKCHAIN
Many people think that Satoshi Nakamoto, the mysterious inventor of Bitcoin, created Blockchain technology. Technically he only created the first real-life implementation of its Bitcoin.
In fact, the word blockchain is never even mentioned in Satoshi’s original whitepaper. The closest he comes to saying Blockchain is a “chain of blocks”.
This technique was originally described in 1991 by a group of researchers and was originally intended to timestamp digital documents so that it’s not possible to backdate them or to tamper with them.
Almost like a notary. However, it went by mostly unused until it was adapted by Satoshi Nakamoto in 2009 to create the digital cryptocurrency Bitcoin.
A blockchain is a distributed ledger that is completely open to anyone. They have an interesting property: once some data has been recorded inside a blockchain, it becomes very difficult to change it. So how does that work?
BLOCKCHAIN MODE OF ACTION
This mode of action illustrates how blockchain works.
Blockchain can be described as a collection of records linked with each other, strongly resistant to alteration, and protected using cryptography.
Now, let’s have a closer look at the Bitcoin transaction between two friends, James and Sarah, and find out how it works.
Every user in the Bitcoin network has two keys, a public key, and a private key. The public key is an address that everyone in the network knows of. Like an email address of a user, while the private key is a unique address that only the user has knowledge of, something like a password.
For better understanding, the public key or address is like a bank account number that money can be transferred through into the account, which the private key allows you to control the back end of your crypto account.
For example, Sarah passes the number of bitcoins he wants to send to James, through James’s unique wallet address through a hashing algorithm. These details are encrypted using encryption, algorithms, and using Sarah’s unique private key. This is done to digitally sign the transaction and to indicate that the transactions came from Sarah. This output is now transmitted across the world using James’s public key which is the wallet address and is seen on a public ledger called the blockchain.
The message or transaction can be decrypted only by James’s private key, which only James has knowledge of different cryptocurrencies, using different hashing algorithms. This transaction and several other similar ones are taking place all around the world. These transactions are validated and then added block by block, the people who validate these blocks are called miners for a block to be validated and added to a blockchain.
Miners need to solve a complex mathematical problem for the data or transaction from Sarah to James to be added to the block to form the blockchain.
The process of solving the complex mathematical problem is called proof of work, and the process of adding a block to the blockchain is called mining which Sarah and James wallets balances are been updated, that is, James’s wallet the receiver been credited and Sarah’s wallet the sender been debited, just like every person in the network who has completed a transaction.
The data that is stored inside a block depends on the type of blockchain. The Bitcoin blockchain for example stores the details about a transaction about bitcoin, such as the sender, receiver, and amount of coins. A block also has a hash.
You can compare a hash to a fingerprint. It identifies a block and all of its contents and it’s always unique, just as a fingerprint. Once a block is created, its hash is being calculated. Changing something inside the block will cause the hash to change. So in other words: hashes are very useful when you want to detect changes to blocks.
Music.
Music: Crimson Fly – Huma-Huma https://youtu.be/qpxhgby-ONI