What is blockchain?

by John
What is blockchain

Blockchain technology is a distributed ledger that allows the users to record the provenance of digital assets. The data stored on the blockchain cannot be modified. It is one of the most legitimate records and is used by industries to make payments. Here is all you need to know about Blockchain technology.

What is blockchain? 

What is blockchain article

Blockchain allows the users to keep a record of the digital assets. Blockchain works based on decentralization and cryptographic hashing. Blockchain technology is very much similar to a Google Doc. When you create a document you have the right to share it with a group of people. A Google doc can be distributed but it cannot be copied or transferred. This gives access to the document to all the people at the same time. Nobody has to wait for the other party to make changes because the modifications to the doc are made and recorded in real-time. This makes the changes completely transparent. Blockchain is one of the most promising technology because it allows reducing the risk of fraud. It also brings a lot of transparency and makes it suitable for myriad uses.

How does blockchain work?

Blockchain works based on three important concepts : blocks, nodes, and miners. Let’s get to know more about them. 

Blocks

Every chain comes with multiple blocks. Each block consists of three basic elements. The data that is stored in the block has a 32-bit whole number which is called a nonce. It is randomly generated when the creation of a block takes place. A block header hash is then created. A hash is a 256-bit number that is changed into a nonce. It starts with many zeroes. When the first block is created, this is when the nonce generates starts to generate the cryptographic hash. That certain block is tied to the nonce unless it gets mined. 

Miners

The process of mining includes the production of new blocks. In a blockchain, each of the blocks comes with a unique nonce and hash

Special software is solved by the miners that help to solve incredibly complex problems. An accepted hash is then generated by the nonce. The nonce is 32 bits and the hash is 256. You can find almost four billion nonce-hash combinations that need to be mined before the accurate one comes into the picture. When the miners find the “golden nonce” then a block is included in the chain. 

If you want to make a change to the block, then it requires re-mining. It can be impossible to manipulate blockchain technology. It requires a lot of time and tech knowledge to crack the codes. 

When a block is mined successfully then this change is automatically accepted by all of the nodes that are present on the network. The miner gets rewarded financially. But what is crypto mining?

Nodes

One of the most important aspects of blockchain technology is decentralization. A single computer or organization cannot own the chain. It is a distributed ledger that is connected to the chain via the nodes. The electronic device can maintain the copy of the blockchain and can keep the network functioning. 

Every node comes with its copy of the blockchain. The network should algorithmically approve the mined block and leave the chain to be updated. The chain is then trusted and verified. The blockchains can be easily checked and can also be viewed. The participants are given a unique identification number that keeps a track of the transactions.

What is the potential of blockchains?

What is the potential of blockchains

Blockchain technology has a lot of potential in the future. It will enable the safe and encrypted logging of digital transactions. Blockchain has all the potential to become the underlying technology of Bitcoin and all the other cryptocurrencies. It has a lot of potential to revolutionize computing in different industries. It will help the industries where centralization is unnatural. It will help organizations where privacy is required in keeping the data safe

By 2030, Blockchain might be used as the foundational technology. The global customer base will use this technology in different fields. Blockchain will grow the business value and could increase to $3.1 trillion by 2030. 

But what is the point of cryptocurrency?

Blockchain applications in the future 

  • Secure sharing of medical data.
  • NFT marketplaces.
  • Music royalties tracking.
  • Cross-border payments.
  • Real-time IoT operating systems.
  • Personal identity security.
  • Anti-money laundering tracking system.
  • Supply chain and logistics monitoring.

Is blockchain secure?

Is blockchain secure

The cryptographic system has made transactions irreversible. The block that has been created once cannot be modified. Although it is possible to add information to the block it cannot be modified. This restricts the users to reverse or making any changes to the transactions that have been made.  

The blockchain is public. The anonymity of the user makes all the transactions on the network in access to the public. This makes it difficult for anyone to hack the system.

Blockchain is safe and secure as it is decentralized. The Bitcoin network is spread around thousands of nodes. The network keeps a track of all transactions that happen on the system. If something goes wrong on one server, then the other servers can keep a track of the information. Hacking on one server will not benefit the hacker in any way. 

It isn’t foolproof to say that Blockchain is impossible to hack but it is not easy either. With the popularity of Blockchain and other cryptocurrencies, the users will suffer losses by investing or get tricked by giving up on their coins. There are low to no chances of the coins getting hacked so this makes it one of the safest systems to use

Wrap up

In simple words, a blockchain is an ever-growing list of records and data. The list comprises many blocks of data. The data is organized in chronological order. The data is secured by cryptographic proofs.

Blockchain was designed as a distributed ledger but it can also be used as a centralized system as it has the potential to assure data integrity. It also reduces operational costs and has a lot of scope in the future. By the way, many online casinos surf on cryptocurrencies and blockchains, you will know everything thanks to HyCasino.

Also read: what are the different types of crypto-currencies?

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