Blockchain Technology Explained

 


What the Email is on the internet, is what Bitcoin is on Blockchain.

Simply a Blockchain application.
blockchain powers the next generation of the internet

Blockchain was first used to power bitcoin in 2008, it's a distributed ledger technology.
It's a decentralized digital registry. A distributed secure database.
In order to make an entry on the Blockchain database, all the computers have to agree about its state so that no one computer, can make an alteration without the consensus of the others.

Once completed a block is added on the Blockchain, it can't be deleted, each has a harsh code (unique identifier of a block, which has a particular set of data)

It works to make a secure database.
Blockchain as a distributed ledger is a consensus of replicated, shared, and synchronized list of data, graphically dispersed across multiple sites, countries or institutions without a centralized administration or data storage.

Any sense of registry can be recorded ie, inventory, transactions, cars, currencies, patents, votes, healthcare data, etc ( any Valuable information)

Companies using digital databases can do the same, but Blockchain is more resistant because of the number of copies of data.
Blockchain enables discovery, valuation and transfer of all discrete units of value and the development of distributed organizations via token market systems.

A token is a quantifying unit of value that is recorded on the Blockchain,it could be of any kind,may be likes on social media, currency, integrity of a system, etc

Tokenisation enables a self organization to create emergent coordination and thus a distributed management system
A Blockchain consists of a series of encrypted blocks that contain data, a Blockchain is a link of these blocks.
Once data is saved in a block, a 64 character harsh value (special name) is put on the block/file
Harshing makes the data immutable, you can only write data on the database and once it's there, it's VERY hard to change it, almost impossible, data shared on the Blockchain is generally incorruptible

Public key cryptography is the main security feature on Blockchain.

It is a long randomly looking string of numbers, it's an address to a token (block of data)
Value sent across the network are recorded belonging to that address. It is like a password that gives the owner access to their digital assets (means to interact with corresponding data).

A public key is associated with the private key.
That anyone can make an encrypted transaction to a public key address But that encrypted message can only be deciphered by the private key that corresponds to the public key.

This way security only requires keeping the private key private, the public key can be opened and distributed without compromising security.

Example On the bitcoin Blockchain to receive funds from another person, you use a software called a wallet, which creates a public key that you give to someone else for them to send bitcoins to that address with a corresponding private key

You can then access that wallet with bitcoins on it. Network consensus makes it possible, the proof of work/ mining/ validation transactions earn something in this case some bitcoins for validating and adding the data on the Blockchain.
When you install the specific software it downloads all existing data of the Blockchain application. From there you become part of the Blockchain, for Blockchain technology to work it needs community and the internet of things makes this future INEVITABLE.

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