Monday-Crypto Theme by Steemit Pakistan - What is Blockchain Technology?
It is also known as Distributed Ledger Technology or DLT in short. It is a type of database, a distributed database and it is playing a huge and crucial role in maintaining cryptocurrencies and their transactions. The most amazing thing about this technology is that it is shared among all the individuals that are using or accessing crypto or anything related to it. This technology has numerous advantages, the best one being that it is decentralized! Meaning that no third party or the government is required to handle and manage it.
It is managed by different nodes that make a computer network and it maintains the security of all the transactions being made, which are verified directly from one peer to another. The database is accessible to all, meaning it is public and people can have a look at all the transactions that were made, this also helps prevent fraud and maintains the safety of the assets. Let me give you an example:
Consider a Google Document, when we share it, it is shared to all the users without the need of making copies. Now, all the users can easily access it and no one has to wait for a third-party source or an owner to authorize their use. But all the changes being made to the document are being recorded.
Blockchain is similar to the concept of Google Docs but it is more advanced, secure, and decentralized. And the data structure of blockchain is also very interesting! Well, here data is collected in the form of packets or groups which we call as Blocks, now each block has a certain capacity of data that it can store, once filled it is closed. Now you might wonder, that when it is closed, how will it be linked to other data? This system maintains that too! Once a block is filled, it is linked with the previously filled block and in this way, a chain of data is formed which is quite evident from the name Blockchain. The new transactions. the new information, all of it is then stored in a different block which is linked to the previous ones, and once this one is filled, it is also closed.
Now in typical databases, data is stored in the form of rows, columns, or tables. But here, it is stored in blocks that form a chain, and these blocks are linked together with the help of cryptography. Blockchain has provided everyone with a lot of advantages to us and the fact that the transactions are secure and safe makes it even more useful and satisfactory. Also, the data or the transactions once entered or recorded can not be removed/deleted, they are visible to the public and everyone using this technology.
So that was it for this post, I hope now you have an idea of what blockchain is and how it has helped us secure our transactions. Take care everyone and stay blessed and happy!
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