What is Blockchain and How does it work?

Nowadays, Bitcoin has been in the headlines for a long time. There has been a lot of hope among people about bitcoin because the price of bitcoin is increasing day by day. But do you want to know what is the technology behind Bitcoin? Because Bitcoin is related to Blockchain, so you have to know about Blockchain and how it works. Now the question arises, do you know what is Blockchain Technology? Why is it important to know about it?

Blockchain technology is about to transform our IT industry the way open-source software did a decade ago. And just as Linux has been the core of modern application development for almost a decade, Blockchain is also going to be a great way to share information in the coming times, and it will be low cost and very easy to implement. Also. it can be done between open and private networks.

But a lot of hype was generated about Blockchain technology because they felt that it can completely change our future technology.
This thing is true up to a limit but speaking like this will not make any sense. We have to understand this technology completely, we have to understand every aspect of this technology.

It is true that the pace of adoption of Blockchain is very slow, but technology experts believe that this speed is going to increase gradually in the future which is good news for everyone. In the future, this technology is going to change the whole world.

So, we are here to provide complete information about the new Blockchain technology. It will help you to upgrade your knowledge about Blockchain Technology.

What is Blockchain Technology?

Blockchain is a digital ledger. But do you know what a ledger is? Ledger is a book that maintains such accounts where debits and credits transactions are posted from the book where the original entry is. Or just say that the entries from the original book are updated in this ledger.

We can say that a blockchain is digitized, decentralized, public ledger.

Let’s Understand Blockchain Technology in simple words:

Let’s say you have a file of transactions (a “node”) on your computer (a “ledger”). Two government accountants (which we call “miners”) also have the same file in their system (hence they are “distributed”). As soon as you make a transaction, your computer e-mails both of those accountants to inform them.

Every accountant wants to check whether you can afford it or not (and in return, they can get their salary which is “Bitcoins” or not).

Whichever of these two checks first & finally validates it and presses “REPLY ALL”, while with this he also attaches his logic to verify that transaction and it is called “Proof of Work”.

In the meantime, if that second accountant also agrees, then everyone updates their files of transactions….. This whole process or concept is called “Blockchain” technology.

Therefore blockchain is such an incorruptible digital ledger of transactions that is programmed to record virtually everything. All the list of records that are in the blockchain is called “blocks”. Therefore this blockchain is always a continuously growing list of records that are linked and secured.

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Who Invented Blockchain Technology?

Blockchain technology was invented by Satoshi Nakamoto in 2008.

The main objective of Satoshi Nakamoto doing all this was that he wanted to create a decentralized Bitcoin ledger—the blockchain—that gives people the ability to control their money so that no third party or any government could not access or monitor their money.

Satoshi, the creator of Bitcoin, suddenly disappeared in the year 2011, leaving behind this open-source software and Bitcoin users who can use and update it.

Many believe that this is not a person named Satoshi Nakamota, it is just a fictional character. By the way, the correct information is not available anywhere.

The invention of the blockchain for bitcoin is the first digital currency that can solve the double-spending problem without the help of any trusted central authority or central server. That’s why this Blockchain Technology has also been the inspiration of many other applications.

Why should we know about Blockchain?

There are three main reasons to know about Blockchain Technology.

1. There is no need for Blockchain technology to exist publicly. It can also exist privately where nodes will simply point into a single private network and the Blockchain will act as a distributed ledger.

Financial institutions are under a lot of pressure as they have to demonstrate regulatory compliance and hence many institutions are doing Blockchain implementations. Secure solutions such as Blockchain can become a huge and important building block to reduce compliance costs.

2. Block-chain technology has more reach than finance. It can be applied in any multi-step transaction where traceability and visibility is required. Supply chain is a notable case where Blockchain can be used to manage leverage and to audit sign contracts and product provenance.

Along with this, it can also be used in voting platforms, for titles and deed management. As the digital and physical worlds are converging, the practical applications of Blockchain are also increasing slowly.

3. The exponential and disruptive growth of Blockchain can only come when public and private Blockchains converge together in an ecosystem where firms, customers and suppliers can collaborate together in a secure, auditable and virtual way.

How Secure is Blockchain?

Nothing on the internet is secure. On the other hand, if we talk about Blockchain technology, then it is “Unhackable” to a great extent in comparison to the rest of the technology. To do any transaction in Blockchain, all the nodes of the entire network will have to agree, only then that transaction will be valid. Here no single entity can say whether the transaction has taken place or not.

It is impossible to hack this system. The computing resources of almost all blockchains are tremendous because there is not a single computer here, but there are many computers connected to the network.

Real-life Applications Blockchain Technology

Now you must have understood the basic concept of this technology, so let’s know where they are used in real-life applications.

1. Follow My Vote: It wants to change the way we vote and become the first open-source online voting solution in the world.

2. Arcade City: This is a true decentralized ridesharing service that is also known as the ‘Uber killer’.

3. ShoCard: It stores your identity in Bitcoin’s blockchain so that you can be easily verified.

4. Symbiont: It provides better smart securities in Blockchain.

5. Bitnation: This is a “Governance 2.0” initiative that seeks to establish DoItYourself governance by working with a collaborative platform.

6. ChainLink: It uses blockchain technology to verify and validate the authenticity and title of real-world items.

What is Crypto Mining?

Buying through cryptography is called Cryptocurrency Mining because all information has to be created digitally in the database. Those who do this mining are called miners.

Status of Cryptocurrencies in Different Countries

The mining of cryptocurrency is banned in countries like China and Thailand. When China imposed the ban, the rates of bitcoin fell sharply. After that, it has now been banned in Thailand as well. The Thai Securities and Exchange Commission (SEC) has banned cryptocurrencies and non-fungible tokens (NFTs) over concerns about excessive betting.

Horizon says that in recent weeks, China has taken a tough stance on crypto mining by shutting down operations in at least five provinces or regions rich in coal or hydroelectric power. The experts behind this belief that it has been done because of China’s own environmental policy. However, cryptocurrencies will be legal or banned in India. The government has not said anything openly on this yet.

How Blockchain Helps Children’s Education?

There has been speculation for some time about the potential use of blockchain in education. 92% of teachers say that technology has a big impact on the way students learn and interact with each other.

One of those technologies that have positively impacted the learning process is the blockchain. Learning Economy, a Washington DC-based non-profit company is using blockchain. Using bitcoin’s blockchain technology, the company is exploring a way to securely share skills, education, and work experience.

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