What is a Blockchain?
Blockchain is a distributed database that maintains a continuously-growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block.
A blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. By design, blockchains are inherently resistant to modification of the data. Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks and the consensus of the network. Functionally, a blockchain can serve as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically.”
The blockchain is a distributed, public ledger that contains the history of every bitcoin transaction. Anyone can download a copy of the blockchain, and it can be inspected to trace the path of bitcoins from one bitcoin transaction to another. It should be noted that while transactions are openly verified, personal information about the individuals making those transactions remain private. The only information that identifies a bitcoin user is their digital signature or addresses.
As opposed to a traditional information network, which stores data on a centralized server, blockchain networks are decentralized across several different computers called ‘nodes.’ When one of these nodes wants to add new data (a bitcoin transaction), it must solve an extremely difficult math problem, called a ‘hash.’ The node that solves this problem first adds the block of data (bitcoin transaction) and broadcasts the update across the network. This is also known as ‘mining’ for bitcoins.
It’s important to note that each new block in the blockchain is connected to the block before it and after it, creating an irreversible, immutable chain. This makes it impossible for anyone to manipulate the ledger by changing past records without having to change subsequent blocks as well. If someone tries to make any changes in past blocks then all the subsequent blocks will become invalid and any computational work done on those blocks will
Blockchain is a fascinating technology and it is in the news. Many people have heard of the Bitcoin blockchain but that’s just one of many. Blockchain is an exciting new technology that will surely change our lives in the years to come.
So what is it?
Blockchain is a decentralized database of all transactions across a peer-to-peer network. By design, blockchains are inherently resistant to alteration of the data. A blockchain can serve as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks, which requires consensus of the network majority. Although blockchain records are not unalterable, blockchains may be considered secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been claimed with a blockchain.
The first blockchain was conceptualized by Satoshi Nakamoto in 2008, who was building upon the hashcash proof-of-work function. The first work on a cryptographically secured chain
It’s a new, groundbreaking invention that will change the way we think about technology. Blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.
For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. Blockchains are secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain.
Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin. The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. The bitcoin design has inspired other applications, and blockchains which are readable by the public are widely used by cryptocurrencies. Private blockchains have been proposed for business use. Sources such as Computerworld called the marketing of such blockchains without a proper security model “snake oil.”
This is an
Blockchain technology is probably best known for being the technology behind the cryptocurrency Bitcoin. However, bitcoin was merely the first of many potential applications for blockchain technology. It is a type of distributed database that is secure from tampering and revision and it ensures transparency in its network.
Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta, two researchers who wanted to implement a system where document timestamps could not be tampered with. But this system was not implemented until 2009 when Satoshi Nakamoto launched bitcoin as a form of digital currency based on blockchain technology. Transactions are then recorded in “blocks” which are chained together chronologically to create an “open ledger” which can be accessed by anyone on the internet.
While transactions on the blockchain network are public, the identity of the buyers and sellers are anonymous, giving users a high level of privacy. This makes this digital currency particularly attractive to those who want to conduct private transactions without having to reveal their identity to third parties such as banks or other financial institutions.
Blockchain is essentially a public ledger where all transactions that occur between people within the network are recorded in chronological order. These transactions are put into blocks which are linked together to form a chain, hence where it
Blockchain technology is getting popular and ubiquitous.
It is a revolutionary method of storing and transmitting data in a totally secure way. The blockchain is also the main technological solution behind bitcoin and other crypto-currencies that many people feel will be the payment mechanism of the future.