Blockchain technology is a revolutionary technology that is a distributed decentralized system. This system records information in such a way that it makes it impossible to copy, steal, or change. This technology makes instantaneous transactions on the network without involving any middlemen. It is a digital ledger system of all transactions which are first copied and then distributed across the entire network on the blockchain. Once these records of the transactions have been added and shared across the chain, it becomes difficult and nearly impossible to change the information or corrupt the data.
Now the records in the blockchain which are called blocks keep on growing. These records are linked and connected using cryptography. The blockchain is described as a distributed ledger which records transactions between two parties efficiently and permanently. Permanent because the data cannot be altered and if tried to alter, the entire chain breaks.
History of Blockchain Technology.
The first concept of blockchain was made by a mysterious person or a group of people named Satoshi Nakamoto in 2008. Nakamoto developed and improved the concept and design of Blockchain Technology.
In 2009, the first transaction of Bitcoin was made between Hal Finney, a computer scientist and Satoshi Nakamoto.
Lazlo Hanycez (a programmer from Florida)
purchased two from Papa John’s using Bitcoins. Hanycez transferred 10000 bitcoins which was worth 60 dollars at that time.
The worth of 1 bitcoin today is $80 million. Lazlo Hanycez made the first successful and complete transaction.
In 2011, many organizations like electronic frontiers and wikileaks started to accept bitcoins in the form of donations. One Bitcoin was 1 US dollar in 2011.
In 2012, Blockchains and cryptocurrency were showed on TV shows like the Good Wife. A magazine called ” Bitcoin Magazine” was launched by Vitalik Buterins.
In 2017, Bitcoin reached 1000 US dollars per bitcoin. The value of bitcoins had never been this high before. In 2018, Facebook decided to use blockchain technology for transaction purposes.
Structure of Blockchain.
Blockchain technology is a distributed digital ledger containing information in the form of blocks (the database). Now, these blocks cannot be altered or removed from the chain or network or chain without altering or removing all the subsequent blocks. Each block includes one cryptographic hash of the block before it, linking both the blocks.
Structure of the database of the blockchain :
The basic parts of the blockchain are the record which can be any information, the block which is a bundle of records, and the chain by which all blocks are linked together.
How does the blockchain work? (Taking cryptocurrency trades).
- During a trade, the trader sells his coin to the buyer including a digital signature of both the parties.
- The ‘nodes’ check all details of the trade and make sure that the trade is legit and valid.
- These records are accepted and added to a block and each block has a unique code called a hash.
- This block is then connected to the main blockchain connected by the hash together in the right order. The hash codes now keep the records safe.
Uses of the Blockchain Technology.
Blockchain technology is used in multiple areas. The main use of blockchains today is as an open and decentralised ledger for cryptocurrencies. One of the most familiar cryptocurrencies is Bitcoin. Blockchain technology does not end with cryptocurrencies only. It is used in many other places like in financial services, supply chains, video games, smart contracts, etc.
A cryptocurrency is a digital or virtual asset used as a medium of exchange. It is secured by using blockchain technology and can be used for safe and secure transactions. These assets are more commonly called crypto coins. These coins are used as a medium of exchange. Each coin holds stored ledger information that cannot be altered or removed. These are created for safe and secure transactions. One of the most used or well-known cryptocurrencies in the market is Bitcoin. The value of these cryptocurrencies keeps on changing every second. Other cryptocurrencies in the market include Ethereum, Tether, XRP, Litecoin, Bitcoin Cash, Binance coin, EOS, Tezos, Nechain, Cosmos, Revain, Zeash, and many more.
Financial services are those economic services that are provided by the finance industries. This includes banks, insurance companies, stock brokerage, etc.
Financial services are looking forward to using blockchain systems as soon as possible. Industries have shown interest in this field as this is going to increase efficiency and cost this technology is going to speed up the back-office systems.
Blockchain technology is also used in video games. In some video games, we find a lot of virtual assets that are shown for sale. This blockchain technology is used to catalog digital and virtual assets. The transactions for these assets are done through blockchain. A game call crypto kitties was launched in November 2017. A virtual pet bracket and in-game character were sold for more than a hundred thousand US dollars full stop this was a big demonstration to other video game industries about how blockchain technology could be used as video games.
Blockchain technology is also used in health facilities. In 2020 during the covid-19 pandemic many Crypto networks by working to help employers, government airlines and others in keeping track of the people. Hospitals and other health care communities utilize blockchain for needed medical equipment.
Types of Blockchain networks .
There are currently 4 types of blockchain networks- public blockchain and private blockchain, Consortium blockchain, and hybrid blockchain.
- Public Blockchains: a public blockchain does not have any restriction on access. Anyone can send transactions to it and can also become participants and in the execution process.
- Private blockchain: Any users cannot have access to the private block change unless they are invited by the administrators of the network. Access to participants and validators is completely restricted.
- Hybrid blockchain: The hybrid blockchain system has a combination of both the features – centralized and decentralized.
- Sidechain: A sidechain is a ledger that is designed to run along with the primary blockchains. The primary blockchain entries can be linked to the side chain. The side chain can operate independently.
Bitcoin was the first successful example of blockchain. Now there are a lot of cryptocurrencies in the market. A new cryptocurrency called The Pi network was also added to the blockchain network. The value of this cryptocurrency is negligible now but it may later increase. Today there are many places where they have accepted crypto currency. The safety of the blockchain was desired by a large number of industries. Since the block of the information cannot be altered or removed by any middleman the industries have taken it as a good thing. The blocks cannot be altered or removed from the chain or network without altering or removing all the subsequent blocks. Unlike the public blockchain which is public to all users, the private blockchains have restrictions. Only those who have access to private blockchain can use the information and use or alter it. Access of a participant and the validator is completely restricted. So, welcome to blockchain technology and see the world using Blockchain Technology.