BLOCK CHAIN: Introduction

 What is blockchain?

Blockchain is a mechanism for storing data in a manner that makes it impossible to change or hack.

A blockchain is simply a network of computer systems that duplicates and distributes a digital ledger of transactions across the entire network. Each block on the chain comprises several transactions, and each participant's ledger receives a copy of each new transaction that takes place on the blockchain. Distributed Ledger Technology refers to the decentralized database that is governed by numerous users ( DLT ).

In a blockchain, data is stored in blocks that are connected in a chain. because data connect in a chain so nobody can change or modify it.

As a result, if hackers try to hack a blockchain system, then he has to change every block in the chain which is not possible.

History of blockchain.

In 2008, Satoshi Nakamoto conceptualized the theory of distributed blockchains. He makes a special improvement to the design that makes it possible to add blocks to the initial chain without needing them to be signed by reliable parties. The updated trees would include a safe record of data transfers. It timestamps and verifies each exchange via a peer-to-peer network. It might be run independently without a centralized authority. These developments were so advantageous that they established blockchains as the foundation of cryptocurrencies. In the cryptocurrency industry today, the design acts as the public ledger for all transactions.

Blockchains have been steadily and optimistically evolving. In Satoshi Nakamoto's initial paper, the phrases "block" and "chain" were used individually, although they later gained popularity as one word, The blockchain.

by 2016. The blockchain file size for cryptocurrencies, which keeps track of all network transactions, has increased recently from 20 GB to 100 GB.

How does blockchain work?

Blockchain aims to make it possible to share and record digital information without editing it. A blockchain serves as the basis for immutable ledgers, or records of transactions that cannot be changed, removed, or destroyed. Blockchains are also referred to as distributed ledger technologies because of this we also called it (DLT).

You can easily understand it's the mechanism by these steps.

1. Record the transaction.

2. Gain consensus.

3. Link the blocks.

4. Share the ledger.

What are the benefits of blockchain?

Blockchain technology brings many benefits. In the subsections that follow, we list some of them.

1. Advance security.

Modern digital transactions require a high level of security and trust, which blockchain platforms offer. A constant worry is that someone may alter the underlying program to create fictitious funds for himself. Contrarily, blockchain leverages the three principles of decentralization, consensus, and cryptography to build a very secure underpinning software system that is virtually impossible to alter. No single point of failure exists, and only one user is unable to alter the transaction records.

2. Improved efficiency.

Business-to-business transactions can be time-consuming and lead to operational bottlenecks, particularly when third-party regulatory agencies and compliance are involved. Such commercial transactions are quicker and more efficient thanks to blockchain's transparency and smart contracts.

Conclusion.

No little part of the reason why blockchain is finally gaining recognition is due to bitcoin and cryptocurrencies. Blockchain, a buzzword on everyone's lips as an investor in the country, promises to reduce middlemen while increasing accuracy, efficiency, security, and cost-effectiveness in commercial and government activities.