You want to know what it is Blockchain step by step but confused?
In this Article, all your questions about what Blockchain is will be answered.
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Table of Contents
What is Blockchain?
Initially, many people when they hear the word Blockchain think of the technology that brought digital cryptocurrencies such as Bitcoin in January 2009.
While this was indeed the first use of this technology, Blockchain is capable of many more applications. Although Blockchain sounds like a reference to a single technology, there is not just one Blockchain, Blockchain is the term given to a number of computer technologies aimed at decentralized data recording, distribution and monitoring.
Simply put, Blockchain is like a digital ledger maintained by a network of computers. Every time a transaction is made, it is recorded in the ledger. The ledger is publicly accessible, but transactions are encrypted, making them difficult to falsify.
Advantages of Blockchain
- A Safe and Secure Haven: Blockchain is very secure as it is difficult to counterfeit.
- Integrity: Data in Blockchain is immutable as it cannot be modified without changing all subsequent blocks.
- Transparency: Blockchain is public, making it easy to control transactions.
In its application to a state, it can record anything of value, such as: Financial transactions and coins, contracts and assets, even electoral votes ή medical data.
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So let's look more specifically at why Blockchain is revolutionizing the way we interact with each other. Blockchain records data in batches, called blocks, which are linked together chronologically to form a continuous line: metaphorically, a chain of blocks, hence the word Blockchain.
If you want to make a change to the information stored in a particular block, you do not rewrite it; instead, the change is recorded in a new block which also records that for example the information x changed to ψ at a specific date and time.
The Blockchain used
- Financial transactions: Blockchain is used to record cryptocurrency transactions, such as Bitcoin.
- EGovernment: Blockchain is used to record data and digitally sign documents.
- Marketing: Blockchain is used to record product traceability and prevent fraud.
Blockchain is an innovative technology with the potential to change the way businesses and governments operate.
One could simply remember Blockchain as a digital accounting book that records transactions over time, without ever altering or destroying the history of old transactions.
I hope you found this article useful
See here : Bitcoin for Beginners What is Bitcoin in Simple Words
