Steemit Crypto Academy Season 4 - Homework Post for @yousafharoonkhan, Task 4: Blockchain, Decentralisation and Block explorer
Write the definition of blockchain. And how our data on Blockchain is protected from hackers? And write details about Data, Hash and Previous Hash tag and explain through screenshot.
INTRODUCTION
Many people that have heard about cryptocurrency but does not know it's mechanism on which it's being supported to stay trustworthy, transparent and secured. Many persons mistake Blockchain for cryptocurrency, (funny!) while most doesn't care to know, all they care about is that provided cryptocurrency can can help them in paying for their desired goods and services online, every other thing is not important to them. But today I tell everyone that knowledge is powerful.
Special thanks to Prof.@yousafharoonkhan for impacting knowledge, your lectures were well explained and I have benefited a lot.a
Write the definition of blockchain and how our data on Blockchain is protected from hackers?
Blockchain is a compound word with a make up of Block and Chain where block is the container containing information (data) while chain is a connection which link two things together forming an immutable extension.
Therefore, Blockchain can be defined as a chain of blocks which are carrying decentralised
immutable information that are linked to each other, each of the block contains special information. In digital currency, each of the blocks contains information of the digital currency, records of each transaction details like who was paid, when, how much was paid, hash of the block and hash of the previous block (code of the last transaction that was that recorded. Two or more of these blocks linked together by the previous harsh constitute a Blockchain.
For every new transaction, a new block is created for it to store information, each of the block are linked together and each of them take reference of each other in respect to hash, this Chain of block is known as Ledger.
When the block becomes blockchain, it is impossible to alter the information in a Blockchain because each of the blocks contains its own hash and the hash of the previous block (the unique code of the last transaction that was recorded) so if any changes is made in the block, it affects the subsequent blocks and the previous block will not match with the next block and this can be easily be detected.
Blockchain is a decentralised system which bridge the gap between third party interference like the financial institutions and government (third party) thereby giving people the right to do what ever they want with their resources and making the information accessible to anyone but can not be altered by anyone, it operates directly from the sender to receiver which makes it peer to peer (P2P) system.
How our data from Blockchain are being protected from hackers
As we all know that Blockchain is a decentralised financial ledger of transaction that is distributed across all the computers that make up a node, If a hacker alters the information of a block in a computer in an attempt to perform a transaction, since we all know that every block in a Blockchain contains the previous hash of the the previous block, when a block is altered by a hacker, it affects the next block in such a way that the hash of the previous block will not match with the hash of the subsequent block and this can easily be detected and made invalid, this is the reason why it's called a Blockchain because the chain must continue linking up by referencing hash of every previous block in that sequence.
For a hacker to perform a transaction by altering the Block, the hacker will not just do it to one block alone, the hacker has to do this to other thousands of computer network, so that majority of the computers around the world has the same information with the one tampered, this impossible for a hacker to do and this makes hacking a Blockchain pointless because it's a waist of effort.
In addition, Blockchain is protected by cryptography which is a system that prevents the third parties (unauthorized users) from viewing from viewing private information. Cryptography consist of encryption of information by sender and decryption of information by authorized receiver using keys, the block store data in the form of codes for privacy. The Blockchain offers security, trust and transparency of data and can be used in the political and election sector for proper accountability of data since it can not be manipulated.
Write details about Data, Hash and Previous Hash tag and explain through screenshot?
DATA
In Blockchain technology, data is one of the components used to verify information in a block. Data is the basic information which a block contains that gives details of transaction like who was paid, how much was paid, when did this transaction occurred, the address that got paid, address of the receiver, how much was involved in the transaction and status of the transaction, whether the transaction is successful, pending or unsuccessful and so many others.
All the data in a block are for transparency, security and trust and it's impossible to be altered, any attempt to alter this information, it changes the previous hash of the block in the Blockchain making previous hash of the new block not to correspond with the hash of previous block since every block in the every subsequent block contains its hash and its previous block hash thereby making the fraud easily detectable and declaring the attempted entry of the hacker invalid.
HASH
Hash is also one of the important unique components which serves as an identify of a block, is responsible for linking up of blocks together in the sequence which gives rise to Blockchain.
The hash is a unique code that is different from one block to another, no two block can have the same hash, hash is also used to check for security, transparency and trust.
For example if a block have a hash that is stored as 0b72daH7qqW8, this code is stored as the identity of the block which is unique in the Blockchain. The same code is transferred to the next block as a register of the previous block meaning that every hash is the continuation of the previous block. This is to keep the continuity in the link up of the connection of the blocks in the Blockchain.
PREVIOUS BLOCK
From my earlier explanation about previous hash, previous hash is the third components used to verify information in a Blockchain. Previous hash is a last transaction unique code that was recorded in a block which is passed to the subsequent block that ensures continuous link up of other blocks forming the Blockchain.
When a block's hash is altered, the previous hash of the subsequent block changes and no longer match with match with the hash of the previous block, so for a hacker to perform a transaction in a Blockchain, the hacker has to also alter the hash of the block in thousands of computer to ensure that majority of the computer has the same hash but this is impossible and its pointless because it will be invalid
The previous hash has a major role to play to ensure that the blocks are connected to each other whereby the new block and the previous block are connected by referencing each other which forms a Blockchain.
The Data, Hash and Previous Hash are the major components used for verifying information in a Blockchain and they contributes in ensuring that transparency, security and trust in the system thereby creating no room for hackers to carry out illegal transactions. Thanks to founder of Blockchain Satoshi Nakamoto for his innovation.
CONCLUSION
Blockchain technology has given a great solution to security and transparency in various aspects of
Social interactions. If not for the use of Blockchain technology in cryptocurrency, hackers would have jeopardized with the system.
Cc;
@yousafharoonkhan
