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| WHAT IS BLOCKCHAIN? HOW IT WORK? |
Have you ever
heard about Blockchain? If not then don’t worry, but surely you know about Bitcoin.
If you know about Bitcoin then to understand about Blockchain will be easy for
you. Because Bitcoin’s record keeping technology is known as Blockchain and
apart of crypto currency like Bitcoin, it also relate to another form of Banking
and Investing. This will be batter for you to know about it, then continue with
us. Let’s start to understand ‘What is Blockchain’.
WHAT IS BLOCKCHAIN?
Basically Blockchain
is a type of Database. What is Database? Database is a collection of
information which is stored on computer system electronically. This database
has all the data in table format so that any specific information’s searching
and filtering can be done easily. Spreadsheet is also in the table format but
it is designed for particular person, whereas database can be used by so many
peoples at a time.
Blockchain
gives permission to record and to distribute data, but not to edit. This technology
is discovered in 1991 by Stuart Haber & W. Scott Stornetta. But Blockchain’s
first real world application was launched in 2007 with Bitcoin.
WHY IT IS CALLED BLOCKCHAIN?
Because Blockchain collects information in
group and this groups are also known as Blocks. Every block has limited storage
Capacity, that is why when 1 block is filled, it connects to other filled
blocks. This how a data chain forms, and that is why this is called as Block
chain.
HOW BOCKCHAIN WORK? AND ITS ELEMENTS
This
blockchain is chain of those Blocks who have information. Every block has a
cryptographic hash of recent block. This Hash generates after every transaction
and it is a strength of numbers and letters. Hash is a connection who converts letters
and numbers input into fixed length’s encrypted output.
This hash not
only depends on transaction but also depends on past transaction which happened
on chain. If we make a miner change in transaction, then a new Hash will form. Means
if someone try to tempering data, then his all settings will be changed. If someone
try to misuse it, can be catch easily. That is why this is very secure. This Blockchain
spread over so many computers, and every computer has a blockchain copy.
This computers
are know as notes. This notes find out whether there is any change in
transaction or not. If transactions are proved by notes, will be written in
block. This notes form infrastructure for block. This blockchain store, preserve
and spread data. This blockchain updates itself after every 10 minutes.
NOW LET’S TALK
HOW BLOCKCHAIN IS USEFUL FOR BITCOIN?
For Bitcoin,
blockchain is specific type of database, which stores every Bitcoin transaction.
Blockchain spreads Cryptocurrency option on Computers, so they can operate
without any central authority. This reduces transaction risk and so many transactions
fees are removed.
There are so
many areas where use of Blockchain is necessary and also there are some sectors
whom services can make batter with its use. With the help of blockchain, fund
exchange can be easily done between Banks and institutions. And if we talk
about health care sector, there we can store patient’s data securely with
blockchain. Patients will get a proof that their data will never change.
While storing this
data, we can use private key for more privacy. Blockchain can also be used in
supply change and in voting system. In supply change, suppliers can store their
purchased material’s record, to verify that product’s authentication. And if we
use it in voting system, election fraud can be stopped. And also transparency can
be keep with blockchain protocol.
There are so many other uses of Blockchain. But this
are major ones, if you like it then must share it with your friends and family.