Do you know what blockchain is or what blockchain technology is? Many of you must have heard the name Bitcoin. .Bitcoin is a cryptocurrency i.e. digital money (that money has no physical existence). This bitcoin cryptocurrency is actually based on blockchain technology. In today’s article we will discuss blockchain technology in detail.
.Bitcoin cryptocurrency is considered very secure because of the use of blockchain technology behind it. Blockchain technology consists of many data blocks and these blocks are connected to form a blockchain.
.Before learning about blockchain technology, it is important to understand what a blockchain is, so first let’s find out what is a blockchain?
What is a blockchain?
.Just as the Internet was invented by connecting thousands and millions of computers, a long chain of data blocks has been called a blockchain.
The word blockchain is a combination of two words. .The first word is block and the second word is chain. Blockchain technology contains many data blocks, all of which are encoded using cryptography technology. And these blocks are connected to each other to form a long chain.
.Each block contains a cryptographic hash of the previous block, a timestamp, and transaction information. And thus the data related to each block is stored in the block next to it. .So once the data is recorded in the block, this data can no longer be deleted.
What is blockchain technology?
Blockchain technology is a very old technology. This technique was first explained in 1991 by Stuart Haber and W. Scott Sterneta. .The main purpose of blockchain technology was timestamp digital documents. So that no one can tamper with or change it.
In 2006, a mysterious Japanese man, Satoshi Nakamoto, discovered bitcoin using blockchain technology. .And since then blockchain technology has become a much-discussed topic.
History of blockchain technology
.Blockchain is being considered as a revolutionary technology for the future economy, but not much is known about the origins of this technology. .It is believed that this blockchain technology was invented to support this crypto-currency after the invention of Bitcoin in 2008. It is a modern technology without which it is impossible to transact Bitcoin or any other type of crypto-currency.
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How blockchain works?
The blockchain contains many blocks, and these blocks store the hash (Prev_Hash), timestamp, and transaction data of the previous block. .After that, the blocks and nodes are stored on the server.
Now all the nodes in a blockchain are connected to each other. And they are constantly exchanging new data blocks with each other. As a result, all nodes are always up to date with the latest information.
.The blockchain basically forms a P2P or peer-to-peer network, so that the data of each block in the blockchain can be verified by anyone connected to the Internet.
.When a new person joins this blockchain network, he gets a copy of all the blocks in front of him and before and he verifies each block from this copy and confirms that all the data in the blockchain is still correct.
.The more times the blocks in a blockchain are verified, the more the data becomes immutable. This is basically how blockchain technology continues to advance. We all know that bitcoin transactions are based on blockchain technology. .So let’s look at an example, how does this Blockchain technology work?
Suppose you have 10 Bitcoins and you want to send 8 Bitcoins to me from there. .In that case this bitcoin amount will be transferred from your bitcoin wallet to my wallet only when you send the bitcoin to my BTC wallet address. .And as soon as Bitcoin is sent, a new block will be created in the blockchain with all the details of this transaction. .Inside this block will be the data sender, meaning your bitcoin wallet address, receiver i.e. my bitcoin wallet address and the amount of bitcoin you have sent.
.This new block created this time will come in front of everyone connected to the blockchain to verifyWhen everyone verifies the block and confirms that everything is correct, the record of this transaction will be permanently stored in the blockchain and the transaction will be completed.
.In the case of bitcoin, those who perform this block verification are called BitCoin Miners. And, BitCoin miners will get most of the money you have to pay to complete this transaction. .Those who are doing bitcoin mining using their different hardware or have done this block verification. Now you must understand a little bit about how blockchain works and why miners can earn BitCoin because of bitcoin mining.
.Advantages of blockchain technology
The benefits of blockchain technology are as follows:
Blockchain technology is a very secure strategy because every transaction is encrypted by cryptography techniques. .And connections are made between each block using hashing technology.
Also, because the user identity in the blockchain system is kept secret and the information is constantly updated, it is absolutely impossible for information to be stolen or corrupted.
.When data is recorded in a block, the blockchain transaction is verified once before. Data cannot be deleted on this system, which maintains the transparency of the data. And at the same time, all the nodes connected to the network are always kept up to date.
.Get rid of third party hassle
Blockchain technology does not require a third party. As a result, anyone from anywhere in the world can easily transact without any hassle. Which is extremely troublesome in the current conventional banking system.
Use of blockchain technology in the future
At present blockchain technology is only being used in cryptocurrencies such as Bitcoin. .But in future this technology can be used in the following sectors
Banking and insurance sector
Information technology and information management
Data storage and data transfer
Bureau of Intelligence
.What is the difference between Bitcoin and Blockchain?
Blockchain technology and bitcoin are two completely different things. .Indeed, blockchain is a technology, a platform where anything, not just digital currency, can be digitized and recorded. That means blockchain is a digital ledger. .Bitcoin, on the other hand, is a digital medium through which anything can be bought and sold. Although it is wrong to call it currency, because it does not exist in the real world. Cryptocurrency networks are also powered by blockchain technology.
.Ultimately we can expect that blockchain technology will improve the efficiency of all types of transactions by removing intermediaries and it will also reduce the cost of all transactions. .At the same time, it will also increase transparency and free the general public from fraudulent transactions, as under it every transaction will be recorded and allocated to the public ledger.