In simple words, Blockchain is a distributed database present on multiple computers at the same time with constantly growing records or ‘blocks’ that are adding to it. So every block consists of a timestamp along with the previous link to the previous block, forming a chain.
Blockchain is managed by a cluster of computers and isn’t owned by any single identity. So why is this technology going to replace others?
Well, this is because Blockchain has no central authority. The information in it is open for everyone but is very secure. Anything built on blockchain will be very transparent and everyone involved is accountable for their actions. It's very simple yet indigenous. There are two types of Blockchain, private and public.
Public Blockchain is open and transparent and no one is in charge, it’s basically for the people.
Private Blockchain is private property of an organization or person. Unlike public Blockchain, private Blockchain is an in-charge of the various important things. In such a type of Blockchain, anyone can’t make transactions.
Is Blockchain the new trend?
You may have come across this technology but didn't pay much attention to it. In fact, it’s a technology that is going to make its way through every industry, whether financial, healthcare or IT. That the reason, many of the tech enthusiasts are now looking for the Blockchain certification online.
Why Blockchain cannot be hacked?
A blockchain is a group of different technologies, used together in various ways to create various results. It's an open code technology. The information being stored is in a decentralized network. Making it very secure and unalterable. The records on a Blockchain are highly secured because of cryptography. Every block is connected to another block dynamically and is distributed across the networks making it difficult to corrupt or alter the data by hackers.
How does Blockchain work?
To understand this you have to understand its fundamental unit, block. A block stores new data. This data is added to the Blockchain. A Blockchain consists of multiple blocks attached together. A Blockchain has to be added as follows:
1. There has to be a transaction.
2. Next, the transaction has to be verified.
3. The above transaction has to be stored in a block. This step occurs after the transaction has been verified as accurate.
4. Lastly, the block must be added to a hash. So what is this hash? It’s a unique, identifying code. So once the block is hashed, its added to the Blockchain.
5. These transactions are reconfirmed every time a new block is being added to the Blockchain.
Uses Of It in Current Industries
Blockchain can be easily integrated into many areas.
· Cryptocurrency
Most of the cryptocurrencies are using Blockchain for the purpose of record transactions. Ex. Bitcoin.
· Smart Contracts
Blockchain is using smart contracts to propose partially or fully executed contracts without any human interaction.
· Financial Services
Banks are interested in Blockchain as it has got the potential to speed things up in back-office settlement systems.
· Video Games
A Blockchain game called CryptoKitties has been launched. It demonstrated how Blockchain can be used to catalog game assets.
· Supply Chain
Efforts are being made to employ Blockchain in supply chain industries.
How Bitcoin and Blockchain are related?
The Bitcoin protocol was actually built on Blockchain. The main motive of Blockchain is to allow digital information to be recorded and distributed, but this information cannot be edited.
The Bitcoin Blockchain is a database consisting of the Bitcoin transaction records, this is achieved through mining and their agreement is called consensus.