What is Blockchain? How is it working?

in #blockchain5 years ago


The blockchain, created by the person or persons who used the name Satoshi Nakamoto and whose ingenuity was dubious, became increasingly important and became the target of everyone's mind. "What is this block chain?"
Allowing digital data not to be copied but to be distributed The blockchain is the backbone of a whole new kind of internet. In fact, although the digital currency is prepared for Bitcoin, the technology community is finding new potential uses for this technology. Just like on the Internet or in cars, you need to know how it works to use the block chain. But as you become familiar with this new technology, you understand better than a revolutionary technology.

Distributed Database

Consider a spreadsheet that has been copied thousands of times to a network of computers. Then consider that this network is designed to update the table regularly. You're starting to understand the block chain. The information in a block chain continues to exist as a shared and constantly updated database. There are obvious benefits of using the network in this way. Since the block chain database is not stored in a single location, the records are public and can be verified easily. There is no centralized version of this information that hackers can access and disrupt. Since it is hosted on millions of computers at the same time, everyone in the database can access the data in the database.

Stability and Reliability of Block Chain

The block chain has internal stability, just like the Internet. Because the same information blocks are stored along the network, the block chain is:

1- Not controlled by a single institution or organization.

2- Not having a single break point.

Bitcoin was invented in 2008 and the Bitcoin block chain has been running since then without any major problems. So far, all the problems that Bitcoin has been experiencing either hacking or administrative errors. In other words, these problems are caused by malice or human error; not because there are errors in the underlying concepts. The Internet has survived for 30 years. This means good news for block chain technology that is still under development.

Transparent and Intact

Blockchain technology is a consensus that updates itself automatically every 10 minutes. The network, a self-monitoring digital value ecosystem, updates every process in 10-minute increments. Each of these processes is called a ve block inin, so there are two important things: First, the principle of transparency is embedded in the whole network and open to everyone. The other is that there is a need for greater processing power than the entire network to change any information unit in the block chain and therefore not be corrupted. While this is possible in theory, it is impossible in practice. For example, if you take control of the system to collect Bitcoins, you also reset the value of Bitcoins.

Network of Nodes

The block chain consists of "nodes" that perform calculations. A node is a computer running a client that is connected to a block network chain and runs a client responsible for validating and transferring transactions. When the nodes are transferred to the block chain network, they automatically download a current copy of the block chain. The nodes that come together form a second level and strong network that is completely different from the current operation of the Internet. Each node is an administrator on the block chain and is willing to join the network. In this respect, it can be said that the network is not the center. However, each node has an award for joining the network: a chance to win Bitcoin.

Although the nodes do say "mining", this is a false expression. In fact, each node competes with each other to solve computational puzzles. Bitcoin was at the center point of the block chain at first. Nowadays, this technology is considered to be just one of countless areas of application: Today, the number of Bitcoin-like crypto currencies exceeds 700. In addition, potential adaptations of the original block chain concept are currently underway or in development. Block chain is a decentralized technology. Everything in the block chain affects the entire network. There are some important consequences.

The block chain, a new way of verifying transactions, also invalidates some aspects of traditional trade: For example, stock market transactions can occur almost immediately in the block chain, or registries such as land registry can be kept publicly. The database that records bitcoin operations is managed jointly by a global computer network using block chain technology: that is, Bitcoin's manager is not a single institution, but the network itself. The lack of a center means that the network can operate on a user-to-user basis. We are discovering the potential of this mass cooperation.

Who Will Use the BlockChain?

As with the web infrastructure, it is not necessary to know the inner face of the block chain. Currently the biggest potential use of block chain technology is the financial world. The World Bank says that the money transfers made in 2015 exceeded $ 430 billion, and there is now a huge demand for block chain developers. The block chain can eliminate the intermediary in such operations. Just as graphical user interfaces have opened the use of computers to everyone thanks to the desktop concept, graphical user interfaces called "wallets" are widely used to use the block chain. People use these apps to shop with Bitcoin or store them with other crypto currencies. Online transactions are closely related to authentication processes. in the future, we can make sure that wallet applications will pave the way for other types of identity management.

Does Block Chain mean a new Web 3.0?

Block chain provides internet users with the ability to create value and validates digital information. How will workplaces benefit from this? Distributed registries, called "smart contracts", allow for simple contracts to be coded when the specified conditions are met. Ethereum is an open-source block chain project just for this purpose. Even though it is still in its infancy, Ethereum has the potential to carry the usefulness of its block chains to a scale that will change the world. At the current level of technology, it is possible to program intelligent contracts to perform simple functions. For example, by using block chain technology and Bitcoin, you can make a payment when a certain financial tool reaches a certain level. For example, those who want to share a means of transport at the moment need Uber. However, through interpersonal payment, the block chain can lead to direct interaction of the parties and the emergence of a decentralized sharing economy.

As with the web infrastructure, it is not necessary to know the inner face of the block chain. Currently the biggest potential use of block chain technology is the financial world. The World Bank says that the money transfers made in 2015 exceeded $ 430 billion, and there is now a huge demand for block chain developers. The block chain can eliminate the intermediary in such operations. Just as graphical user interfaces have opened the use of computers to everyone thanks to the desktop concept, graphical user interfaces called "wallets" are widely used to use the block chain. People use these apps to shop with Bitcoin or store them with other crypto currencies. Online transactions are closely related to authentication processes. in the future, we can make sure that wallet applications will pave the way for other types of identity management.

Does Block Chain mean a new Web 3.0?

An example of this is OpenBazaar. The site is a P2P version of eBay using the block chain. It installs the application on your devices; then you are shopping with OpenBazaar vendors without any commission and brokerage fees. The ı rule-free daha nature of the protocol makes your personal reputation much more effective in business deals than it is on eBay.

Mass Resource

Mass-source initiatives, such as Kickstarter and Gofundme, are working on the gradually emerging P2P economy. The popularity of these sites is proof that people want to have a direct voice in product development. Block chains can bring this interest to the next level, enabling mass-based venture capital investment funds to dry out.

Protection of Intellectual Property Rights

As it is known, it is possible to copy the digital information infinitely and distribute it everywhere thanks to the internet. This provides a gold mine with free content to web users. However, the copyright holders are not so lucky. They both lose their intellectual property rights and therefore suffer material damage. Intelligent contracts can protect copyrights, automate the sale of creative artifacts, and eliminate file copying and distribution. For example, Mycelia, founded by British singer and composer Imogen Heap, uses block chains for P2P music distribution and allows musicians to sell their songs directly to their fans. He also sends licenses to producers and automatically splits his royalties between song writers and musicians. All of this is automated with smart contracts. Block chains make it possible to pay in fractional crypto currencies, which suggests that the block chain has a great chance of success in this scenario.

Identity Management

There is no doubt that there is a need for better identity management on the web. Authentication is the weak point of all financial transactions over the Internet. However, the solutions to the security risks associated with the trade from the web are not good at all. Distributed registries offer improved methods of proving who you are and the opportunity to digitize personal documents. Having a secure identity will also be important for online interactions taking place in the sharing economy. After all, having a good reputation is the most basic requirement of internet shopping.

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