What is Blockchain Technology?: The blockchain is a growing list of records, which are also called blocks, linked together using cryptography. Blockchains are popular because there can be read by the public, and are also used by cryptocurrencies.
Blockchain technology is like the biggest buzzwords in the tech space right now. But what is blockchain technology? and why is everyone talking about it?
According to Don & Alex Tapscott, the authors of Blockchain Revolution (2016), “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
What is Blockchain Technology? | The New Internet?
The blockchain technology has become an ingenious invention in recent times, and the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, the blockchain technology has evolved into something better and greater. Also, the main question everyone wants to know is: What is Blockchain?
Blockchain allows digital information to be distributed, but not copied. In so doing, the blockchain technology has created a new type of internet. Even the blockchain technology was originally created for the digital currency like Bitcoin, the Tech industries have now found other potential uses for the technology
Bitcoin which is the brainchild of blockchain technology has been referred to as “digital gold,” and for a good reason. The blockchains also make other types of digital value. And just like the internet, you don’t need to know how the blockchain technology works to use it.
What is Blockchain Technology? | How does it Work?
The blockchain technology is decentralized. This means that it is not controlled by one central authority. Using the Bitcoin as a focus, while our traditional currencies are issued via the central banks, the Bitcoin has no central bank or authority. But instead, the Bitcoin Blockchain is maintained by a network of people called miners.
These “miners,” or “nodes” on the network, are a network of people who are running a purpose-built computer competing to solve the complex mathematical problems required for a transaction go through.
For example, if a lot of people are making lots of bitcoin transactions. Each transaction starts with a wallet which has a “private key.” This begins a digital signature and provides mathematical proof that the transaction has come from the owner of the wallet.
Now imagine thousands or millions of these transactions taking place across the world. The individual transactions are grouped together into a block and organized by strict cryptographic rules. The block then is sent out to the bitcoin network, made up of people running high-powered computers. These high powered computers will compete to validate and verify the transactions by trying to solve complex mathematical puzzles.
The winner who solves it first receives an award in bitcoin.
The validated block is then added to previous blocks which creates a chain of blocks called a blockchain.
What is Blockchain Technology? | How the Blockchain is tamper-proof?
Since we now have an idea of what is blockchain technology, we will look at one of the advantages.
One of the main advantages of blockchain technology is that it can’t be tampered with. Each block of a transaction is added onto the chain of existing transactions which carries a hard, cryptographic reference to the previous block.
Part of solving the transaction puzzle involves working out random number called the “nonce.” The nonce combines with the other available data like the transaction size and creates a digital fingerprint which is called a hash. This hash is encrypted, which makes it secure and tamper-proof.
Every digital fingerprint is unique and has to meet certain cryptographic conditions. Once this condition is met, a block is completed and added to other chains of blocks. To tamper with this, it means that each earlier block which is over half a million would require the cryptographic puzzles to be re-mined, which is not possible.