Ad Code

Blockchain - In the simplest way

Understand blockchain in simplest way

Many of us know that blockchain is a trending topic and many people think it is very complicated.

Here is my attempt to explain blockchain in the simplest way.....

What is blockchain?

 Blockchain is used to store data or transactions in blocks that are chained together. These blocks are connected by using cryptographic hash. Blockchain records data or transactions efficiently and in a permanent way. Once the block is filled with the data it chained with previous block in chronological order. 

Let me explain you in simplest way.
There are three things in a block- 
First is hash number, second is data, third is previous hash number (the hash number is cryptographic hash). When a new block add, hash  number of the previous block becomes previous hash number of that block. Every block are connected to the previous block. 

The data is not changeable in blocks ... anyone can't make changes in them that's why,  we can say that blockchain is a secure technology. 

Blockchain is not a new technology. It is introduced in 1919 by Stuart Haber and W. Scott storneeta.

Furthermore, when we change any cryptographic hash of the block then we need to change all the hash numbers of the previous block. 

Is blockchain secure?

Blockchain security is that any changes made to data are immediately sent to all users to create a secure record. The overall data remains safe even if some users are hacked. 

In the bitcoin case, blockchain is used in a decentralized way so that a single person can't make changes in transactions. However blockchain technologies differ in crtical security. 

Features of blockchain.  

1. Better security:

No one can change data for there benifit. There is encryption process to secure the data. Chromatography is a complex mathematical algorithm that act as a firewall. You could think it that every block have a different identification number. All the blocks have unique hash number and contain hash number of previous block. So trying to change any hash number of block is impossible. 

2. Decentralized:

It is most important key feature of blockchain. It doesn't have any governing authority looking after the framework. This feature works perfectly in blockchain. 
To store data we can directly access it to store our assets there. We can store anything here such as important documents, digital assets and contacts. You can directly control it by the private key. 

3. Concensus:

In blockchain, concensus helps in decision making of nodes active in the network. It is responsible for  network beings trustless. There are lots of concensus algorithms over the globe. 


4. Immutability: 

 This is most vital feature of blockchain technology. Immutability means something that can't be change. It ensures technology will remain as it is.
 To add any transaction, nodes check its validity. If most of think that it is valid than the transaction is added. This promotes Transparency


5. Distributed ledgers:

It is considered as one of the blockchain essential feature. To ensure a better outcome, this distributed computational power across the computers. 


Uses of blockchain

Blockchain can be use in 

1 Voting mechanism 

2 Cross - border payments 

3 Sharing of medical data 

4 personal identity security 

5 real-time IOT operating system 

6 supply chain and logistics monitoring 

7 Anti-money laundering tracking system 

And many more.......


To sum up, blockchain is used in decentralized way and give better security and efficiency to the user in all transactions. It's also provide transparency in transactions records. 

                                



I hope you understand blockchain technology. This was my small effort to explain blockchain in simplest way.







Post a Comment

0 Comments