This is a video on “What is Blockchain”.
Chapters:
00:00 – Introduction
00:33 – What is a Blockchain?
00:42 – Benefit of blockchain?
01:45 – What makes a block?
01:53 – What is a Hash??
03:00 – What is encryption?
03:53 -What is decentralization?
04:23 -What is Node?
05:26 -What is the benefit of a decentralized system?
06:12 – How a blockchain transaction goes through?
06:32 -What are miners?
06:32 -What is proof of work?
06:52 – What is the mining process?
07:17 – Conclusion
In this video tutorial, we will discuss what is blockchain, its benefits, what is block, hash, encryption, node, security of blockchain, decentralization and its benefits, Nide, miners and proof of work and mining process, etc.
(Explained in detail in the video)
A blockchain is like a storehouse that stores all the transaction data and information electronically in the form of blocks.
The idea behind blockchain is to record and distribute all the digital transactions and not allow anyone to edit them.
So, a blockchain network is nothing but made of these millions of blocks that keep records of each and every transaction within it.
Each block contains a set of data that typically includes:
1. The transaction details like who sent the money to whom.
2. Hash- You can compare a hash with a biometrics identification like a fingerprint that generates a unique set of numbers when we create our ID proofs.
3. And the last thing that a block store is the previous block’s hash.
(Explained in detail in the video)
This means that the transaction details of any preceding block are stored in the new block, and so on. This is because there is a limit to the amount of data a single block can store.
Because of this, the process of linking one block to another goes and on, forming a chain-like network of blocks linked together.
This entire process of linking makes storing and tracking information very easy and secure.
(Explained in detail in the video)
Encryption:
Encryption ensures that the records on the blockchain are stored in the form of complex mathematical codes or numbers.
Consider it like a unique identification number that you get when you create your Tax Identification Number( TIN ) or any other ID proof.
This means that only the owner of a record knows all his data.
And only he can use it to make transactions using a public-private key partnership.
A public key is like the email id that stores your digital address, and everybody on the blockchain network uses it to identify you.
And a private key is more like your password that only you know about and allows you to make transactions and protect your data.
(Explained in detail in the video)
Blockchain eliminates the slightest possibility of fraud by using its third security parameter called decentralization.
Blockchain transactions don’t need any third-party intermediaries like a bank for your transactions to go ahead.
A decentralized system means that there is no central place or authority that controls, tracks, and keeps records of your transaction.
Instead, a copy of your transaction details is distributed to the entire network of people or computers within the blockchain network.
These computers are called nodes.
Every node has a copy of each and every transaction taking place within the blockchain, and each time a copy is updated, the nodes update their records.
Making it impossible for a single person to alter or tamper with any records.
(Explained in detail in the video)
How a blockchain transaction goes through:
In the 1st step, you enter the transaction details like the receiver’s wallet address and the number of bitcoins you want to send to them.
Next, a copy of your transaction details encrypted as a hash gets distributed to the entire network of people in the blockchain.
Now, miners try to figure out the right hash value by solving some really complex mathematical equations called proof of work.
And this entire process of validating a transaction and adding a new block to the blockchain is called mining.
Finally, the new block is added to a chain of many more blocks existing within the network.
This chain of blocks is nothing but a long history of every transaction that has already taken place in the blockchain.
(Explained in detail in the video)
This brings us to the end of the video.
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