Along with the times and technology, the term blockchain appears which seems to have shocked the virtual world because of the functions and benefits it provides. In short, blockchain is a technology with a basis that is used as a development of the scope of virtual currency or the cool language of today is in the form of crypto.
The most popular forms at this time are bitcoin, ethereum and other forms of cryptocurrencies, which are forms in general as long as they are of one type. The function and use of blockchain is not limited to being a cryptocurrency, but also functioning as something with benefits in various other fields. Such as digitalization and technology.
Blockchain Definition
What is blockchain is actually not difficult to interpret, it just needs to be understood as a technology with a focus on utilizing computing technology whose goal is to create groups. It can be concluded that this set contains from blocks that are interrelated to have various records of this collection of transactions.
Blockchain is a collection of various records of data that will later be processed, which is carried out by a collection of computers with no entity contained in it. Containing a collection of data or data records with security and made into one, the principles of cryptography are the basis used to do this.
Another interesting thing about blockchain is that the network within it has no centralized access or authority. Because blockchain contains various records that are shaped like very large notebooks. Although it can be shared, the contents in it can never be changed or changed.
The nature of this technology that promotes transparency makes blockchain apply the principle of transparency. This means that although the data on the blockchain can be seen publicly, people who want to see it directly need to be involved. From the actions or activities carried out by each in it.
Understanding Blockchain Literally
Derived from two words combined, block and chain with each of these words having a meaning, group for block and chain for chain. This naming is intended to provide an overview of how blockchain works, which creates many groups or blocks with relationships with each other whose function is to facilitate execution and transactions.
Blockchain consists of a series of chains consisting of blocks, if compared to a chain system arrangement with a shared distribution process. A block composed of a ledger is the same as a ledger composed of the three components of the blockchain. These three components are data, hash and hash of the block, respectively.
A Brief History of Blockchain
The beginning of the blockchain was formed and developed actually to meet the needs of a large scale of a system. With the aim of making the work process more effective, it also brings efficiency, cost-effectiveness, guarantees to proof of security when carrying out tasks containing recaps of various transactions.
This idea emerged in 1991, through two people who published a phenomenal journal entitled Journal of Cryptography: How to Time Stamp a Digital Document. The two most influential figures for the emergence of blockchain are Stuart Haber and W. Scott Stornetta. The process of utilizing blockchain made bitcoin emerge as the first virtual currency which later became global.
Continued to 2009 where there was blockchain development carried out by Satoshi Nakamoto. In stark contrast to money from a central bank, bitcoin has no central power or authority to allow the working party to control it. Not completely dependent on the central authority in terms of supervision.
Blockchain Utilization
Blockchain can actually be used in all types of fields, especially fields that are involved with finance. Considering that it is always likened to a digital cash book, its advantages can be accessed and visited by anyone, anytime and anywhere. Blockchain makes it easy to provide a sense of security.
The use of blockchain is also applied in the financial sector, for example in 2018 through McKinsey who created a blockchain opportunity table. The goal is to provide an overview of blockchain opportunities that have the potential to be used in several other fields, including media, property, telecommunications to agriculture and medicine.
Difference between Blockchain and Cryptocurrency
In short, cryptocurrency is a system by its nature that is spread all over, and this makes it uncontrollable. Both by individuals and companies, this is what makes cryptocurrencies so different from blockchain. Although both are engaged in the field of advanced technology systems.
