What is blockchain technology? Guide for beginners

Is Block chain Technology a New Internet?

Block chain is an undeniable ingenious invention-the work of one or a group of people known by the pseudonym Satoshi Nakamoto. But since then, it has evolved into something bigger, and the main question everyone is asking is: what is a block chain?

By allowing digital information to be distributed without copying it, blockchain technology creates the backbone of the new Internet. High-tech societies that were originally designed as digital currencies, bitcoins, have now found other potential uses for technology.

Bitcoin is called digital gold, for good reason. To date, the total value of the currency is close to $112 billion. Block chains can generate other types of digital value. Just like the Internet (or your car), you don't need to know how the block chain uses it. But the basic knowledge of the new technology explains why it is considered revolutionary. So, we hope you like this, what is the block chain guide.

What is blockchain technology?

The block chain is an indestructible digital ledger of economic transactions that can programmatically record not only financial transactions, but almost all values.

How does the block chain work?

Imagine a spreadsheet that repeats thousands of times throughout a computer network. Then imagine that the network is designed to update this spreadsheet regularly and you have a basic understanding of the block chain.

The information on the block chain exists as a shared and continuously reconciled database. This is a way to use networks with obvious advantages. The block chain database is not stored in any single location, which means that the records it keeps are truly public and easy to verify. There is no centralized version of this information that can be compromised by hackers. Hosted by millions of computers at the same time, its data is accessible to anyone on the Internet.

Block chain durability and robustness

Block chain technology, like the Internet, has built-in robustness. By storing the same blocks of information throughout the network, the block chain cannot:

Controlled by any single entity.

There is no single point of failure.

Bitcoin was invented in 2008. Since then, there has been no apparent disruption in the operation of the Bitcoin block chain. So far, any problem with Bitcoin has been the result of hacking or mismanagement. In other words, these problems stem from malice and human error, rather than flaws in the underlying concept.

It turns out that the Internet itself has existed for nearly 30 years. With the continuous development of block chain technology, this is a good record.