If you have been following the recent trends of the digital world and the government plans, you may be familiar with the name “blockchain,” or you would have heard it once. Blockchain is the record-keeping technology behind the cryptocurrency bitcoin. If you would have ever searched “blockchain is a distributed, decentralized, public ledger.”
Why do we call it “blockchain?” At its most basic level, blockchain is simply just a chain of blocks. When we break the word “block” and “chain”, ( We are actually talking about the encapsulation digital information (the “block”) which is stored in a public database (the “chain”)).
Blocks store the information about the transactions like the date, time, and amount of the transaction. They also contain information about who is participating in transactions.
How Blockchain Works?
When the block stores new data then it is added to the blockchain. Blockchain, as the name suggests, consists of multiple blocks strung together cryptographically. In order for the block to be added to the blockchain.
When a transaction occurs, it is initiated and then the transaction must be verified. After your transaction has been verified as accurate, the data of the transaction is then stored on the block. That block must be given a hash and then all the blocks are added on the basis of the hashes.
Is Blockchain Private?
There are different types of blockchains, and for most of the blockchains used in practical use, they are public blockchain, that is, the information is available to everyone who is the part of the network. There are other types of blockchains apart from Public Blockchain like Private Blockchain and Consortium Blockchain.
Is Blockchain Secure?
In my opinion, being a blockchain specialist, I feel that blockchain is the most secure platform for data storage and data circulation in the present time. It is one of the most useful innovations after the internet. It will make a revolution, just like the internet did a decade ago. Blockchain technology is a technology that tackles the issues of security and trust in several ways.
Basically, the data is stored in a distributed way and is immutable. All the data is stored as blocks and every block has a personal hash, and every other block is linked to the last block on the basis of the hash. In order to change a single block, you will need to change each and every other block in order to maintain consistency. For a hacker, changing the transactions will be impossible and the hacker will be unable to change the data.
Blockchain removes the need for trust between the unknown participants in the transaction. The blockchain creates a consensus between the participants and maintains the security of the data.
Blockchain’s Practical Application
Blockchain is used in real-world applications like:
- Bank Use
- Use in Cryptocurrency
- Healthcare Uses
- Property Records Use
- Use in Smart Contracts
- Supply Chain Use
- Uses in Voting
So that’s it. I have tried to give the basic idea of blockchain in an extremely easy for you to understand without any difficulty. If you get interested in technology and want to explore it, you can browse through the internet to gain more knowledge.