What Is A Blockchain, And How Does It Work?
Bitcoin made the term Blockchain famous. Today, Blockchain has become much more than just a payment protocol. [It is] essentially an immense network that consists of thousands of specialized computers worldwide connected, yet no one owns it. You'll know what blockchain is and how it works on this blog.
What Is Not A Blockchain
Blockchain is not a cryptocurrency. It’s essential to avoid confusing the two terms because they do not mean the same thing. Cryptography is also not part of blockchain technology — although it can be used alongside it.
Blockchain Defined
A blockchain is a shared ledger (registry) that records transactions and tracks them in a network. Virtually anything of value can be tracked and traded on a blockchain. A blockchain reduces risk and cuts costs for all involved, and it is simply a type of database, whereas Bitcoin and other cryptocurrencies are applications that run on top of it.
The Following Are Blockchain Technology
The technology has become mainstream news after the launch of several cryptocurrencies. These digital currencies are based on blockchain technology and use for record-keeping purposes.
● Blockchain Technology Is Distributed
It means that there is no central point of failure or single point of control. Data on the blockchain is replicated by all participants in the network and updated simultaneously. Because blockchain data can only be edited by consensus between multiple parties, it is challenging to tamper with once recorded.
● Blockchain Is A Decentralized Technology
Any single entity or person does not control it. Instead, it’s a shared digital ledger that efficiently records transactions between two parties, verifiable and permanent.
● Blockchain Is Immutable
Once the information has been added to the blockchain, it can never be modified or deleted. The word "blockchain" comes from the fact that each block contains a hash pointer and all of the blocks before it. This means that once something is on the blockchain, it's there forever unless you want to spend a lot of money trying to change history (which is not recommended).
Blockchain Can Be Public, Private, Or Permissioned
This open-source technology has been popularized in cryptocurrencies such as Bitcoin, but it has many other applications.
A public blockchain has no restrictions on who may send transactions or participate in mining (i.e., crypto-currency creation).
Private blockchain will restrict who can send transactions and mine blocks (e.g., requiring participants to provide proof of work).
A permissioned blockchain is a decentralized ledger not available to the general public. Authorized users can only access it. The users are restricted to doing only the acts authorized by the ledger administrators and are required to authenticate themselves via digital certificates or other ways.
How Does A Blockchain Work
The blockchain consists of a series of blocks linked together through cryptography. Each block contains a hash pointer and transaction data, and a timestamp. The hash pointer points to its previous block and forms an unbroken chain going back to the first block ever created.
Each new transaction creates a new block and updates the entire blockchain like a domino effect.
Blockchain Applications Beyond Cryptocurrencies
The E-voting system is the most exciting blockchain project beyond cryptocurrencies.
One of the most discussed blockchain applications is e-voting systems, which allow citizens to vote online anonymously. This technology could be used during elections to ensure accurate, fair, and secure results. The first country to use e-voting was Estonia back in 2005, where voters could choose from several options for casting their votes online or on mobile. Another country that has been using e-voting for more than ten years in Switzerland, where citizens have recently been allowed to participate in online voting for the first time!
Blockchain technology has the potential to transform how businesses share information, making it an invaluable component for companies looking to adapt their business processes. If you're unsure where to start, go to www.rematicstokens.com. It is an excellent place to begin.