What is Blockchain?
Blockchain can be defined as a series of blocks containing information. This method is intended to stamp time on digital documents so that it is not possible to reverse or annoy them. The purpose of the blockchain is to solve the problem of duplicate records without the need for a central server.
The blockchain is used for secure transfers of items such as money, property, contracts, etc. Without needing a third-party coordinator such as a bank or government. Once the data has been recorded within the blockchain, it is very difficult to convert it.
Blockchain is a software protocol (like SMTP for email). However, Blockchains could not be run without the Internet. It is also called meta-technology as it affects other technologies. It contains several pieces: database, software application, other connected computers, etc.
Sometimes the term is used for Bitcoin Blockchain or Ethereum Blockchain and sometimes for other tangible currencies or digital tokens. However, most of them talk about distributed labels.
What is a Block?
Blockchain is a series of blocks containing information. Information stored within the block depends on the type of blockchain.
For example, Bitcoin Block contains information about the Sender, Recipient, the amount of bitcoins to be transferred.
The first block of the chain is called the Genesis block. Each new block in the network is linked to the previous block.
Understanding SHN652 – Hash
The block also has a hash. A can be understood as different fingerprints on each block. Identifies the block and all its contents, and is always different, like fingerprints. So once a block is created, any change within the block will cause the hash to change.
Therefore, hash is very useful when you want to get changes at intersections. When a block fingerprint changes, it is not always the same block.
Each Block has
- Hash of the previous block
Consider following the example, when we have a series of 3 blocks. The first block has no predecessor. Therefore, it does not contain the previous block. Block 2 contains the hash of block 1. While block 3 contains the hash of block 2.
Therefore, all blocks contain hash blocks of previous blocks. This is the process that makes blockchain so secure. Let’s see how it works –
Assume that the attacker is able to modify existing data in Block 2. Similarly, Hash of the Block also changes. However, Block 3 still has the old Hash of Block 2. This makes Block 3, and all subsequent blocks ineffective as it does not have the hash proper for the previous block.
Therefore, switching one block can quickly deactivate all subsequent blocks.
Proof of Service
Hashes are a great way to prevent anger but computers these days are very fast and can count hundreds of thousands of hashes per second. Within a few minutes, the attacker may disrupt the block, and then recalculate all the hashes of other blocks to make the blockchain work again.
To avoid this problem, blockchains use the Proof-of-Work concept. It is a process that delays the construction of new blocks.
Proof of work is a computer problem that requires effort to solve. But the time required to verify the results of a computer problem is very short compared to the effort required to solve the computer problem itself.
In the case of Bitcoin, it takes about 10 minutes to calculate the required proof of work to add a new block to the chain. Considering our example, if a criminal could change the data in Block 2, we would have to make proof of the operation (which could take up to 10 minutes) and then make the change in Block 3 and all the following blocks.
This type of equipment makes it difficult to break blocks so even if you interfere with even one block, you will need to recalculate the proof of operation of all subsequent blocks. Therefore, hashing and proof of work makes blockchain safe.
Blockchain Transaction Works/Service?
- Someone is requesting a transaction. Activities may include cryptocurrency, contracts, records or other information.
- The requested activity is streamed to the P2P network with the help of nodes.
- The network of nodes verifies transactions and user status with the help of known algorithms.
- Once the transaction is complete a new block is added to the existing blockchain. Thus lasting and consistent.
What is Cryptocurrency?
Cryptocurrency is one form of exchange like traditional currencies such as the USD, but it is designed to exchange digital information through a process that is made possible by certain cryptography principles. A cryptocurrency is a digital currency and is classified as a small group of different currencies and virtual currencies.
Cryptocurrency is a portable tool based on digital cryptography. In this type of digital currency, the owner owns the money and owns it. No other record is kept in respect of the owner. In 1998, Wei Dai published “B-Money,” an anonymous system that distributes electronica cash system.
What is Bitcoin?
Bitcoin was introduced in 2009 by an anonymous person named Satoshi Nakamoto. Bitcoin is a Peer-to-Peer technology that can be controlled by any central authority or banks. Currently, issuing Bitcoins and managing transactions is done collaboratively on the network. It is currently the world’s leading cryptocurrency. It is an open source and made for the general public which means that no one owns Bitcoin control. In fact, there are only 21 million Bitcoins issued. Currently, Bitcoin has a market capitalization of $ 12 billion.
Anyone can use bitcoin without paying the process fee. If you manage Bitcoin, the sender and receiver make a direct agreement without using a third party.
BlockChain and Bitcoin
Blockchain technology behind Bitcoin. Bitcoin is a digital token, and the blockchain is a log that keeps track of who owns digital tokens. You can’t have Bitcoin without a blockchain, but you can have a blockchain without Bitcoin.
Some cryptocurrencies are prominent
- Bitcoin Cash
Blockchain Council offers a blockchain certificate, designed for people who want to do work in a blockchain domain. This certificate requires in-depth knowledge of the main concept of the blockchain. Focuses on Corda, Smart Contracts, Hyperledger, Quorum applications.
A Blockchain Council certificate can help work in industries such as digital marketing, healthcare, procurement, etc. It has an impact on the use of Blockchain Technology in the local and traditional business.