The Blockchain Technology! A Superb Initiative!
It is said that if the year 2000 was for the Internet, then 2018-19 will be for the blockchain. And by 2027, blockchain's use will be essential for the companies all over the world.
What do you understand by Transaction? Generally money transaction.
In the presence of third parties, sharing anything between two people, it is named Transaction. And this third parties always takes benefit.
But blockchain removes this third parties
Now let's take a look about the blockchain.
What is blockchain ?
First of all look carefully at this term (blockchain). Then you will get a basic idea that what this name actually means. Blockchain means that the chain made of blocks. We all know what the chain is. Chains are created by adding a number of similar materials as well as one with another. Then it can be said that creating a chain of blocks by linking multiple blocks with one another is called blockchain.
Now You may have question that what is actually have in the block?
Well here is the answer: Each single block in blockchain has three things-
- Data
- Hash, and
- previous block's hash.
Let's think technically, Blockchain is a specific database on a specific network, which is distributed to all members of this network. If any information is updated on the database, then it is automatically updated in the other databases of this network.
And this database can be anything, it can be transaction history, or there may be a list of products.
Each distribution database is located in a specific block. Each block has a different unique address to connect with each other and to find out the data later.
How blockchain works
The Blockchain basically creates a P2P (peer to peer) network, where each block's data can be verified by any person who are connected to this network. When a new person registers in this blockchain network, he gets copies of all the blocks of his earlier and following, and he verifies each block and ensures that every data contained in the blockchain is still fine.
There has a 'public key' & 'private key' to use blocks. If I have a public, anyone can see it on my network, whether I actually did the transaction or not.
If I have not paid the price, then there is no scope for denying me. It is becoming easier to keep the transparency of transactions through public keys.
Then what is the private key's job? Though the transaction is visible to anyone, but with the private key only i can know the details of this transaction.
We all know that Bitcoin Transactions works based on Blockchain technology. Let's see how it works.
Suppose you have 5 bitcoins and you want to send me 2 bitcoin from there. In this case the amount will be transferred from your wallet to my wallet. When you will send the bitcoin to my wallet address, a new block will be created in blockchian with all the details of this transaction.
The data of this block will be as a sender, your wallet address. As the receiver, my wallet address and the amount of bitcoin you send. Now this new block will be go to in front of everyone who is connected to Blockchain. When they all verify this block or make sure that everything is okay, then this transaction record will be permanently stored in blockchain and the transaction will be completed.
Why Blockchain is so important?
• Blockchain are sorted in sequence. The 'sequence' of the data is not random, because every block is associated with its previous block.
• Block's data is never can be changed. Even though there is a private key, but once a data becomes 'verified', it is stored as a 'read only data'. when it is associated with block, it is impossible to delete or replace this data.
• The blockchain database is open. The amount of transaction can be seen by anyone, so its transparency persists.
• Third parties like banks or brokers do not get any advantage because the blockchain is a 'peer-to-peer' or customer to customer transaction system.
The blockchain cancels the need for a third party presence, while maintaining the essence of the function, i.e. trust. It allows for ledger sharing or distribution among all parties in a decentralized manner that guarantees the authenticity of the information it conveys.
Is there any Chances to hack the Blockchain?
The main functionality of Blockchain is that it is almost impossible to hack blockchain. As i mentioned earlier, blockchain is a database. Without the private key, the information inside this database can not be read.
I also mentioned that, every block has a unique hash and each block is associated with its previous block. If a hacker enters in a block, then the hash of that block will be change instead. And happens a change in the hash means that the blocks are completely 'invalid'.
Then the next blocks will be invalidate accordingly. Because, every block is associated with its previous block! If the hacker wants to hack successfully, then he will have to validate every block again.
Which is almost impossible. Because, for validate this large amount of data block hacker will get less than 10 minutes. Because in the meantime, new data blocks will be created! That is why it is said that it is impossible to hack the blockchain.
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But this year many crypcurrency site hacked which are great threat for us.