Blockchain Technology: Understanding the Point

Many people may know blockchain technology in relation to cryptocurrencies.

It is amongst other things the technology that makes cryptocurrency possible.

But the potential of blockchain is still just beginning.

Learn more about blockchain in this article.

 

blockchain-technology

 

It seems like everyone is talking about blockchain.

There are good reasons for this.

Blockchain technology offers a completely new way of storing and sharing information and digital assets.

It makes the history of a digital asset impossible to alter by the use of cryptographic hashing and decentralization. 

A blockchain is a type of database.

It can store blocks of data that they individually encrypt and chain together in a chronological row of data.

This means that you cannot change one block without changing all the other blocks.

This makes it a very secure type of data storing database that is almost impossible to alter. 

 

Decentralized Assets in Blockchain Technology

Everyone has access to the blockchain.

The blockchain asset is decentralized which means that no one has control over it, and it is completely transparent to the public.

In addition, it gives full-time access.

The digital assets are distributed in the network, which creates an immutable record of the particular asset.

This is opposed to the asset being copied or transferred.

Thus these factors are some of the reasons why this technology is extremely secure and could be a primary technology in many different areas of society.

Block, Nodes, and Miners

There are three primary concepts in the blockchain.

These are blocks, nodes, and miners. Blocks are the basis of a blockchain as the name indicates.

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Each block has data in it, and a nonce which creates a special hash, which is like a fingerprint. 

Then there are miners which are the ones creating new blocks.

They use very special software to solve complex mathematical problems that can give them a hash that the nonce accepts.

This is incredibly complex.

The miner gets rewarded financially for doing this hard job. 

The last thing is nodes.

Nodes can be any type of device that has copies of the blockchain.

This is important because blockchain technology is not centralized, so this means it is a distributed ledger via nodes.

These notes have copies of the blockchain, so they are the ones approving changes to the blockchain.

This is what makes blockchain so incredibly safe. 

Blockchain and Cryptocurrency

Twenty years went by from when blockchain technology was originally invented until it was used to create the famous cryptocurrency bitcoin.

No one knows who created bitcoin, but it was the first of many cryptocurrencies and is also the most valuable of them all today.

Read the amazing history of bitcoin.

Cryptocurrencies can only exist because of the blockchain that transfers the digital assets that are cryptocurrency.

It has quickly become a very popular type of currency that has opened up a world of possibilities for digital payments.

One of the reasons for this is the security that blockchain provides cryptocurrency.

If you want to read more about cryptocurrencies, then click here