What is blockchain ? Blockchains are incredibly popular nowadays. there for every want to know about it. Like the name indicates, a blockchain is a chain of blocks that contains information. 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.
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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 block, it becomes very difficult to change it.
How BlockChain Works?
Now We know that what is blockchain ? but now one question- how it is work? Well, let’s take a closer look at a block. Each block contains some data, the hash of the block and the hash of the previous block. 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 in here, 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, it’s 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. If the fingerprint of a block changes, it no longer is the same block. The third element inside each block is the hash of the previous block. This effectively creates a chain of blocks and it’s this technique that makes a blockchain so secure.
Features of Blockchain:
They’re practically immutable, since altering any information would require enormous computing power, and the longer a blockchain becomes, the safer it is They tend to be transparent, since typically anyone can see the data on a blockchain (like Bitcoin, for example) using a “blockchain explorer” that lets you view all transactions. Some blockchain technologies, however, offer more anonymity.
They tend to be decentralized, meaning there’s no central authority behind them – unlike a traditional database, which can be shut down or censored at the will of its owner. And even if part of its network goes down, a block will still remain operational 24/7. But there are blockchain projects with a more centralized approach.
All these features combined offer hope that many of our daily routines can become more effective, transparent, faster, and cheaper.