Friday, August 3, 2018

What is Blockchain? A beginner's guide

  Raj Thakkar       Friday, August 3, 2018
Nowadays blockchain is one of the most famous and emerging technologies. "Blockchain" becomes most popular with "Cryptocurrency".  Many it companies are doing research more and more in this technology. Many businesses are investing million dollars in Blockchain technology

Blockchain


Here in this article I will explain what is Blockchain with simple example so that everyone can understand what actually blockchain is and how it works?

What is Blockchain?


Definition according to Wikipedia.

A blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography.

Example


Suppose in one room we have different lockers which are made of transparent glasses. Everyone can see that what is inside the lockers but can't open it. Now each locker is delicately given to each person. and that person can only open and take money out of it with his/her private key.  Now everyone has single public key through which they can deposit money in any locker. But using this public key person can not withdraw money back once it is deposited into locker.  

Above is a simple example of Blockchain. Let us take another more convincing example.

Assume that one excel file or Spreadsheet is shared among all computers in the world. Everyone can read it, insert new records into it but can't edit previously inserted records.

So same as above example a blockchain is a collection of blocks which are connected to each other in chronological way. Here block is a row of excel where in real blockchain, a block can be set of any data.

So now we can summarize that Blockchain is a public decentralized ledger that everyone can add data into it but can't modify once it is added.

Blockchain with Cryptocurreny (Bitcoin)


We all know that today if we want to send money to anyone else then we must have to take help of banks as a third party. But Blockchain has eliminated third party and we can send bitcoins (Digital Money, Cryptocurrency) to anyone without help of banks or governments. 

How Blockchain Works?


Each block contains date and timestamp attached to it. Very first block uses timestamp attached to it to calculate an alphanumeric string which is also known as hash. Afterwords, every new blocks uses  previous block's has to calculate its own hash. Once block has been added it cannot be modified. 

As much as blocks increase, blockchain becomes more complicated. We can say that Blockchain cannot be hacked. Actually blockchain is not located at any central location. But it exists on several computers over internet. So to hack it all computers must be hacked at a same time which is really not possible. 

So we can say that Blockchain is a safe and secure technology which eliminate third party concept and we can directly do transactions with more authenticity.

Currently Blockchain is widely used in cryptocurrency but many other sectors like music industries and healthcare industries are also investing in Blockchain. Time will surely tell us that how much powerful blockchain is.


I hope this article is helpful to all of you. Share your views about this new and emerging technology with others via commenting over here. Also share this article with your friends over social media. Have a nice day.  
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Thanks for reading What is Blockchain? A beginner's guide

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