The year 2017 was full of innovation. We have been through IoT, we have been through the uses AI, we have seen the possibilities of Machine Learning and we have also explored BigData. The year 2018 just started and Blockchain became the hottest topic. This new tech is all set to take off now.
In 2008, an internet user named Satoshi Nakamoto introduced a cryptocurrency named Bitcoin. Bitcoin makes the use of cryptography and mathematics to perform secure transactions. Each transaction is stored in a public database called Blockchain. Since its creation, Blockchain has been ingeniously transforming the world.
Blochain, in the simplest form, is a chain of blocks. To understand Blockchain, we can take a look at the Bitcoin transaction. When a Bitcoin transaction happens, the transaction has to pass through a peer-to-peer network joined by a number of users. These users are miners, who are on the network to solve a cryptographic equation.
The miners solve the equation and add to the block, this block is then added to the chain. Similarly, other miners solve the cryptographic equations and then the blocks are added to the chain. This is how a blockchain is formed. Miners are rewarded a small amount of Bitcoin for solving the cryptographic equations.
“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.”
Don & Alex Tapscott, authors Blockchain Revolution
Every block in the blockchain represents an event that took place. The sequence of events stored in a blockchain can be accessed by anyone easily.
Bitcoin users can track their transactions easily in the Blockchain database. Similarly, Ethereum users can track their transactions in the Etherscan database. Bitcoin and Ethereum transactions are stored in the Blockchain against the unique wallet address, the amount and the time of the transaction. Each transaction is validated by a number of minors.
How Blockchain initiated
The very first block was inserted into the Blockchain in the year 2009. The first Block, the zero block is known as Genesis Block. The Genesis Block basically initiated the Blockchain technology. Bitcoin is the first application running successfully on the Blockchain technology. Basically, Bitcoin has its own Blockchain. Other cryptocurrencies such as Ethereum and Neblio have their own Blockchains as well. A large number of cryptocurrencies make the use of Bitcoin Blockchain to run on.
Blockchain in Layman’s Terms?
Blockchain is the memory of the universe. The data stored on the Blockchain is accessible by millions of users. The digital public ledger stores all the data in its blocks. It’s an incorruptible database. Blockchain can store anything that has to do with the virtual-economics. Other than the economic values, it can virtually store anything that has a particular value.
The Blockchain is a distributed technology and it laid down the foundation of decentralised networks as well. It doesn not involve any duplication, it’s completely distributed among all the users. The decentralised network is a chain of computers called nodes. Every single node is an administrator in its own block. In the Bitcoin language, nodes are basically the miners.
That’s all for now. I hope that the way I explained Blockchain above helps you understand it. In case you have any queries, feel free to reach me out through the comments sections below.