Introduction of the Blockchain

Introduction of the Blockchain

Most people have witnessed the craziness of surrounding the Bitcoin. Some predict that Bitcoin can be replacing both nominal currency and gold as a means of value storage or transaction payment, and that limited supply can lead to astronomical value. This article will explain blockchain, a technology that supports Bitcoin easily, so you can establish your own opinion on how revolutionary this technology is. Then, what is so special about blockchain? Why do the clearest people, including many CEOs of large corporations, believe that the blockchain has tremendous potential to change the world, and investment in developing this technology continues to grow? If you look at the blockchain as a publicly shared database among many participants, you can easily understand the concept (but blockchain technology can be built privately to restrict access). Each participant connects to this network through a computer, and all participants maintain the same copy of the database. Therefore, one of the key basic principles of the blockchain is that the information is transparent and can be used by all participants in the network at the same time. Bitcoin is probably one of the most well-known public blockchains. Bitcoin provides users with digital currency that can pay for goods and services or act as a value store like ordinary currency based on blockchain technology. It is open to the public and anyone can participate in the Bitcoin network.

Key Characteristics Of The Blockchain

If the blockchain is just a database, what is special about (it)? There are hundreds of database technologies we can use. To answer this question, let's look at some of the unique features of blockchain technology.

• Information Security

Blockchain is an encrypted security database. Users must have the correct encryption key to read or write information from the database. The keys are paired. It consists of a public key that identifies the database and a private key that allows only the appropriate participants to update the information in the database. This allows users who want to read or update information to access it. In addition, the blockchain can be built privately to select participants, limiting access to users who view or update information on the blockchain.

• Dispersing

Another major feature of the blockchain is that there is no single point of failure. If one or more nodes fail on a blockchain network, the other nodes still hold data and the network continues to operate. Furthermore, this means that the blockchain is distributed. No one "owns" the network. Blockchain is also called distributed ledger because information is stored on multiple devices on a peer-to-peer network. Each director copies and stores the same copy and updates itself independently.

• Modulation Prevention

The name blockchain comes from the fact that data is stored as an information block and these blocks are connected together in a similar way to a 'chain'. The new information is basically updated together with blocks, and is attached to the previous version to generate an invariant anti-modulation record. These properties of the blockchain are very useful when information must be preserved without ever changing it.

• Consensus Base

Blockchain cannot update information unless a majority of participants verify and validate the credentials used. This consensus-based model essentially ensures that no one can control data and generate fraudulent transactions.

Blockchain technology may in some ways fall short of existing databases, but its unique characteristics are ideal. Let's look at some use cases that can lead to innovative solutions through blockchain technology and solve major problems facing society.