What is Blockchain? Thats a popular question these days. I will answer the most common question about blockchain right here.
When we are talking about cryptocurrencies, you may have heard the term “blockchain”. This is an advanced technology behind Bitcoin and some other cryptocurrencies networks. This technology seems to be complicated for many beginner users. However, you should never have to worry when you want to learn more about this system. Its core concept is quite simple, so you can learn this technology easily. A blockchain is a type of database used to record cryptocurrency transactions.
Large databases are usually stored on servers that are operated by some powerful computers. These servers may be built by using thousands or hundreds of computers, so they can offer the best storage capacity and computational power for all users. Because of this advanced technology, many users can get access to the databases quickly.
Storage Structure of the Blockchain
One of the most important differences between the typical database and the blockchain is the procedure on how the data is structured. Blockchain technology will collect all information shared in groups. These groups are also commonly known as blocks. These blocks will hold sets of information from the cryptocurrencies.
Blocks usually have a certain amount of storage capacities. When they are filled and chained into the previously filled blocks, they are going to form a chain of data. This data chain is usually called the Blockchain. All blockchains are made from databases, but not all databases can be classified as blockchains.
It is also a good idea for you to learn how the blockchains are implemented by Bitcoin. Bitcoin needs a series or collection of computers that can be used to store its blockchain. This system will store every Bitcoin transaction made on the system. Each block of the chain will be given the exact timestamp when it is immediately added to the chain.
With this blockchain system, Bitcoin can be used in a decentralized way. In the blockchain, every node will have a full data record from the inception. It will include the whole entire history of the Bitcoin transactions. When a single node has an error, it will use the data from the other nodes as the reference point for correcting itself. Blockchain technology will hold a variety of information or important details, such as state identifications, product inventory, and also legal contracts.
Bitcoin or other cryptocurrencies have the decentralized nature of the blockchain. All transactions can be viewed by all users by using the blockchain explorers. All users are allowed to see any transactions occurring live. This technology is very useful to track where Bitcoin or other currencies go. When Bitcoins are stolen, moved, or spent somewhere else, the transactions can be detected immediately.
Is Blockchain Technology Secure?
Blockchain technology is currently used by many users because it is safe and secure. It can be trusted in several ways. All new blocks will be stored chronologically and linearly. They will be added to the blockchain at the end of the chain. You are going to see each block has its own position on the chain.
After the block is added to the blockchain, it will be difficult to alter the contents of the block unless the majority of users want to do so. Each block of the chain will have its own hash and time stamp. When the information is edited, the hash code will change immediately. It will be a good feature for improving the security of this blockchain technology. For example, when a hacker would like to alter the blockchain and also steal Bitcoin, the stolen block will be cast away as an illegitimate block.
How is Blockchain Used?
Blocks on the blockchain system will store all data about the monetary transactions. This blockchain technology can be used to track all transactions that may occur on the market. The blockchain will be copied and spread to a network of computers. When a new block is put into the blockchain, every computer will have new updates for reflecting the change.