BLOCKCHAIN
Nowadays, modern technology allows people to share the information very easily. If any individual wants to share a picture, video or a text message to another individual. But when it comes to money, people have to trust a third party to complete a transaction between them.
For example, If A wants to send some money to B, a third party like bank or government can do a transaction because both A and B are trusting, this trust gives central authority over them. The third party will get some percentage according to their transaction that has been made by A and B and it leads to some money deduction from their original payments. So, to overcome this problem we are using a technology called blockchain. Blockchain uses a concept of decentralized distributed public databases; i.e., without having a central authority over a transaction that costs money. So, it's done without trusting a middle authority to transact with us. So for that, it uses a decentralized public digital ledger that is used to save transaction details in a digital ledger. Technically, a blockchain is a distributed database that is used to maintain a list of records in a node called as a block. So, each block interconnects within themselves, each and every pair of a block is connected by timestamp.
The blockchain comes with the concept of the decentralized distributed system. To achieve this, blockchain uses decentralized public digital ledger that is used to save transaction details in a digital ledger. Ledger is an account notebook to record transaction details of the user in the bank. Likewise, here we are going to use Digital ledger to store the transaction detail of the particular user in an open decentralised system, not only decentralised but distributed.
Here, each and every user has the shared copy of the details in their ledger, if a hacker wants to change the information or a property in a block, it won't get updated, since everyone in the block has a shared copy of transaction details, the whole bunch of users has to authenticate it, so a single user can't change the data without knowing others involved in this property change. Every user has a Cryptographic hash method called digital signatures to send, to receive, to update the record in a block, for every transaction these signatures will change. Only the user can know these changes.
BitCoin (Brief History)
The first blockchain was conceptualized by a pseudonym Satoshi Nakamoto in October 2008 and in the following year crypto-currency "Bitcoin" was introduced. Bitcoin is the first blockchain application. The blockchain databases are managed autonomously by using p2p (Peer to Peer) technology and timestamp server. The invention of the blockchain for Bitcoin made it the first digital currency to get rid of the double-spending problem without requiring a trusted administrator or central authority. Bitcoins are the first decentralized digital currency which is sent through the internet. It is also known as virtual currency, digital currency, crypto-currency.
Join the conversation! Your thoughts help the community grow.