Decoding: Blockchain.

If in case you are familiar with Bitcoin, you must have also heard of something called Blockchain.

In this article, I'm going to help you try and understand what Blockchain means.





What is Blockchain?

Blockchain is a technology developed by Satoshi Nakamoto (already have an article about him) to facilitate distribution of information but not copying. It was created keeping digital currency in mind. However, the tech community is finding other uses for it as well. Many reckon that blockchain may be the backbone of a new internet.

To explain it in simple words, imagine a data table containing large amounts of data which is updates very frequently or a number of times during the day. There you go, you now have a simple understanding of blockchain.  The advantage with this system is that all of the data is publicly available and is not centralized to any location. This pretty much avoids the risk of hacking or corruption of data as there is no private data. This means that blockchain is a highly secure database.

In a blockchain, data is stored in the form of blocks (records) and these are distributed across the networks in the form of a digital ledger which can only be viewed. Another peer on the network can add a new block or delete one which only the user himself/herself has uploaded. This creates a highly secure environment. A blockchain can be adapted to any transaction. It currently is only being used for cryptocurrencies but can be adapted to perform small contracts, etc.

The Big Four are also testing blockchain integration across various formats. Ernest & Young is implementing blockchain by giving all its Swiss employees cryptocurrency wallets and installing a Bitcoin ATM in the office. Others have different approaches to this technology.



Note: The topic of blockchain is a bit too complex to understand. I have only put forth my limited knowledge on the topic. Would always love to know more and please feel free to correct any mistakes of mine in the comments section.
My next write-up is going to be on Bitcoin Mining. Watch out for that! ;) 

Comments

  1. In the above article its said that data is available publicly in block chain system , its not like that blockchain means a distributed ledger with encryption of 256 or 128 bit
    like our watsapp encryption
    and data available willnot able to decoded it visible only for the person who has cc in cryptowallet and so much clarity is missing in how the blockchain system is hackproof ? and there is no word about smartcontracts through which one can trade through cryptocurrencies ..!

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