Blockchain.
Firstable, Blockchain is a drecentralized peer-to-peer system with no central authority figure. While this creates a system that is devoid of corruption form a single source, it still creates a major problem.
- How are any decisions made?
- How does anything get done?
Think of a normal centralized organization.
All the decision are taken by the leader or a board of decision makers. This isn't possible in a blockchain because a blockchain because a blockchain has no leader. For the blockchain to make decisions, they need to come a consensus using consensus mechanisms.
Blockchain technology is disrupting society be enabling new kinds of disintermediated digital plataforms. Furthermore, it is also providing efficiency gains on top of old existing structures by removing the need for actively intermediated data-Synchronizationand concurrnecy control. Due to this dual effect, blockchain technology has the potential to impact all sectors and layers of society, in a multitude of combined ways.
While there is a lot of hype around the concept of blockchains, the phenomenon itself has remained ambiguous and misconceptions have emerged about the capabilities and the potential of blockchain technology.
After knowing the definition of blockchain we must now know the process of how it works.
How Blockchain work?
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Blockchain?
By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the tech community is now finding other potential uses for the technology.
Bitcoin has been called “digital gold,” and for a good reason. To date, the total value of the currency is close to $9 billion US. And blockchains can make other types of digital value. Like the internet (or your car), you don’t need to know how the blockchain works to use it. However, having a basic knowledge of this new technology shows why it’s considered revolutionary. So, we hope you enjoy this, what is Blockchain guide.
A distributed database.
Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.
Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
Blockchain Durability and robustness
Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of information that are identical across its network, the blockchain cannot:
Be controlled by any single entity.
Has no single point of failure.
Bitcoin was invented in 2008. Since that time, the Bitcoin blockchain has operated without significant disruption. (To date, any of problems associated with Bitcoin have been due to hacking or mismanagement. In other words, these problems come from bad intention and human error, not flaws in the underlying concepts.)
The internet itself has proven to be durable for almost 30 years. It’s a track record that bodes well for blockchain technology as it continues to be developed.
Transparent and incorruptible
The blockchain network lives in a state of consensus, one that automatically checks in with itself every ten minutes. A kind of self-auditing ecosystem of a digital value, the network reconciles every transaction that happens in ten-minute intervals. Each group of these transactions is referred to as a “block”. Two important properties result from this:
Transparency data is embedded within the network as a whole, by definition it is public.
It cannot be corrupted altering any unit of information on the blockchain would mean using a huge amount of computing power to override the entire network.
The blockchain gives internet users the ability to create value and authenticates digital information. What will new business applications result?
