Blockchain – The Basics at a Glance

Since Blockchain is introduced in 2008, it has been going around the market as a successful thing. Initially, it was invented for the purpose of the open ledger for cryptocurrency Bitcoin, but with more wings added to it, it has been used for greater purposes. Despite being a decade-old technology, a lot of people are not well acquainted about it. The search engine gets millions of search regarding what is Blockchain. Let’s focus on the basics of Blockchain from its very scratch in this article. P.S. even if you already know about it, a recapitulation never hurts!

Story of Origination

Going through the history of blockchain, we have found out that before the evolution, there was a primitive form of Blockchain called Merkle Tree (1979) which was basically a data structure to verify and handle different data between computers. The functionality used to lie in the validation of data where data alteration during the transfer was ensured. False data rejection and maintenance of authentic data were what it was made for.

1991 was the year when Merkle Tree was used for creating blocks which were securely connected with one to another series for the data record. Whenever a new block of data was added to the chain, it automatically connected the previous block and formed a chain.

The third level of Blockchain was developed in 2008 which is the current blockchain available. It is a secured database where data is stored as blocks connecting each other like a chain. Each of the blocks of a chain contains a history of data transaction. By using the network built between several computers it collects data regarding timestamp verifies the exchange.

Blockchain and Its Functionality

Defining Blockchain it can be said that it is a digitized database with information that can be shared with a public decentralised network to be served as a public ledger for the transactions of cryptocurrency. The chain is growing continuously with cryptographic data called blocks. It enables the participants to keep a track of digital currency transaction without any restriction.

It is a secured list of data where a single block comprises of the transaction details. Once the transaction is completed, the block gets connected to the chain and becomes a permanent part of the database. Every block secures all detail of a new transaction. These are all unique and secured.

Blockchain and Bitcoin

Blockchain is the base of Bitcoin. The decentralisation of Bitcoin was possible because of Blockchain because of no control of the central authority the transactions with cryptocurrency. Blockchain eliminates all third party intervene, so, the payment transaction between two parties with Bitcoin goes directly to them without any third party involvement.

For this secured functionality, Blockchain is not only used in the banking sectors but also in other fields like music, IoT, stock market and many more. There is a recommendation of using Blockchain in medical records, voting system, automobile registration and others.

Unique Factors of Blockchain

• The DLT or Distributed Ledger Technology used in Blockchain is cheaper than accounting methods which are majorly used.
• Elimination of many repeated steps makes it faster and almost error-free.
• It is of great use for international transactions.

Area of Consideration

• A sound knowledge of technology is a must-have for blockchain.
• There are many organizations which are not completely sure about the security of Blockchain.
• It is a public ledger and all companies may not be comfortable with this.

What is your thought about Blockchain? Share with us.