What is Blockchain?
Blockchain technology creates the backbone of a new kind of Internet, which can be used but not copied (subject to permission to distribute digital information). Let’s try to understand the matter more simply.
Suppose a gentleman sends 5 thousand rupees to his father in the village through conventional banking services. So if we analyze this transaction system a little then the gentleman is the first party and his father is the second party on the other hand the banking system is the third party. So what happened is that almost all types of activities including transactions are completed through this banking system. That means the bank provides all the facilities needed to exchange money between two people through its services. That is what we call the banking system.
If you understand above banking system then it is easy for you to understand blockchain. You can compare banking system with blockchain but blockchain system is not like banking system at all. Let’s clear things up a bit. The above gentleman will send money to 10 friends and these few can connect with each other and transact money through one or the other.
In the language of blockchain, we call this issue of money transfer through interconnection as Open Ledger or open transaction account. Being open, the entire blockchain system is kept decentralized. Notice the interconnectedness of 10 people, as they are connected to each other, everyone has an idea of everyone’s account – this is where the real fun of blockchain comes in as every account connected is automatically updated during every transaction. This automatic thing is Distributed Open Ledger which is also known as Decentralized.
But here you may have a doubt – like someone can say 1000 rupees by sending 100 rupees. This is why the entire transaction system has to be verified and those who do this verification are called miners.
Blockchain in a Nutshell —
Blockchain = Block + Chain In this system, each block is an account and each transaction is managed in the form of a management chain. Each block ensures high level of security through hashing so that no one can tamper with it.
Blockchain, using cryptographic technology, was first worked on in 1991, although it did not see much success and did not gain widespread use. Its actual use was exploited in 2008 by an anonymous person named Satoshi Nakamoto. Who started using this top class technology for cryptocurrency i.e. Bitcoin transactions. As a result, recent hole word awareness of the use of blockchain continues to grow today.
Since the journey of Blockchain has been successfully started with the use of Bitcoin and it is easy to understand Blockchain by l00king at how Bitcoin is transacted.
How does blockchain work?
Blockchain essentially creates a P2P network where each block of data in the blockchain can be verified by anyone connected to the internet.
Blockchain in simple terms is distributed open ledger. Let’s say it in simpler terms. We find that various offices-courts have a large ledger in which various information is recorded. This ledger is called a ledger. Which cannot be seen by anyone except the office staff. And transactions made using blockchain are stored in thee ledger on Chain-Steam. which everyone can see.
Think, I will send bitcoins to a person if I get any information or easy to understand via blockchain. Then when I send that person’s bit address, my transaction will be taken in a system called block. The block is then enclosed in a (#) hash for security purposes. And one block is connected to another. Each and every block contains the address of the previous block thus linking one block to every another block.
On the other hand, all the number of transactions that happen at the same time are put into the block. For which thousands of computers work. And all computers have a copy of that block. This is how strong networks are created imagine that. From where we all see the transactions.
Advantages of Blockchain:
Its 100% proved that Block-chain is a technology that is very secure & fast. It is secure because it is impossible to hack the transactions you make using the blockchain.
Think you made a payment to someone using blockchain, then immediately this information of yours reaches all the computers involved in this system. And Hash of previous transaction will be added to your transaction to give validity to the data. This way the Hash of your transaction will be linked as the previous Hash of the Hash of the next transaction. In this way the chain system continues.
If someone wants to hack the blockchain technology and make any mistake in its data, it is impossible to do so. Because to do that, he has to hack thousands of computers at the same time. Because as I said earlier, as soon as each transaction is created, its information reaches thousands of computers. And it takes about 10 minutes to create a block with more transactions. And so to change the entire data of a block; The hacker will have less than 10 minutes. And hacking thousands of computers during this period is imaginary.
Popularity of Blockchain:
You can easily guess from the above information how impossible blockchain hack is. Besides, you can complete your transaction in very less time. As a result, the popularity of blockchain is increasing day by day. Although its success started with cryptocurrency trading. But its use is now being planned for many purposes. For example, some banks are testing its use.
As an example, Bangladesh Railways online ticketing can be considered. Here we buy tickets through mobile or web app. Where the payment gateway charges a certain amount of money extra per transaction. Blockchain here saves us from the processing fees of these payment gateways of railways can transfer the entire process of ticketing inside the blockchain.
There are two parties to the transaction – the railway company and the passenger. A ticket is a block of data, which will be added to the ticket blockchain. Just as financial transaction records exist on the blockchain as unique, individually verifiable and deniable records (like Bitcoin), so can we have these tickets. The most interesting thing is that in the latest ticket blockchain, there will be a record of all transactions of any train route or entire train network, where any ticket was sold or when any train journey took place.
Checkout this article: The Future of Crypto-Currency and Bitcoin!
