What is Blockchain Technology?
Do you know what is blockchain or what is blockchain technology? Many of you must have heard the name Bitcoin. Bitcoin is a cryptocurrency i.e. digital money (money that has no physical existence). This Bitcoin cryptocurrency is actually based on blockchain technology. Today we will discuss blockchain technology in detail.
Bitcoin cryptocurrency is considered to be very secure, as it uses blockchain technology behind it. Blockchain technology consists of many blocks of data and these blocks are interconnected to form a blockchain.
Before knowing about blockchain technology, it is important to understand what is blockchain, so let's first know what is blockchain?
Just as the internet was invented by connecting thousands and millions of computers, a long chain of data blocks (data) is named blockchain.
The term blockchain is composed of two words. The first word is block and the second word is chain. Blockchain technology consists of many data blocks, all these data blocks are encoded using cryptography technology. And these blocks are connected to each other to form a long chain.
Each block contains a cryptographic hash of the block immediately preceding it, a timestamp, and transaction information. And thus the data associated with each block is stored in the block next to it. So once data is recorded in a block, this data cannot be deleted.
How does Blockchain work?
Blockchain in simple terms is distributed open ledger. Let's say it in simpler terms. We find that in various offices-courts there is a large ledger in which various information is recorded. This ledger is called a ledger. Which cannot be seen by anyone except the office staff. Transactions made using blockchain are stored in a ledger on ChainSteam. which everyone can see.
Think, I will send Bitcoin to a person if I get any information or easy to understand via blockchain. Then when I send that person's address, my transaction will be taken in a block. The block is then enclosed in a (#) hash for security purposes. And one block is connected to another. Each block contains the address of the previous block thus linking one block to another block. On the other hand, all the transactions that happen at the same time are put into a block. For which thousands of computers work. And all computers have a copy of that block. This is how strong networks or chains are created. And the documents that are stored for the future through the chain are called ledgers. From where we all see the transactions.
Each block takes less or more than 10 minutes to generate depending on the system power. A block is connected to another block to form a chain system. And that is why it is called blockchain.
Advantages of Blockchain Technology:
Advantages of blockchain technology are given below –
Security:
Blockchain technology is very secure technique as every transaction is encrypted by cryptography techniques. And the connection between each block is established using hashing technology.
In addition, since the identity of the user is hidden in the blockchain system and the information is constantly updated, it is absolutely impossible for information to be stolen or corrupted.
Clarity:
When data is recorded in a block, the blockchain transaction is verified once before. Data cannot be deleted in this system, thereby maintaining data transparency. And with this, all the nodes connected to the network are always kept updated.
Freedom from third party hassles
Blockchain technology requires no third parties. As a result, anyone can easily transact from anywhere in the world without any hassle. Which is very troublesome in the current banking system.
The Popularity of Blockchain
You can easily guess from the above information how impossible blockchain hack is. Besides, you can complete your transaction in very less time. As a result, the popularity of blockchain is increasing day by day. Although its success started with cryptocurrency trading. But its use is now being planned for many purposes. For example, some banks are testing its use. In this way, research continues on its use day by day.
I think it would be better to go through the selection process.