What is Blockchain ? Blockchain technology was first used in the core codes of the Bitcoin program, and the Bitcoin network was based on this technology. Blockchain is a distributed, decentralized, public ledger and at its most basic level, Blockchain is literally just a chain of blocks, we are actually talking about digital information (the “block”) stored in a public database (the “chain”).
Blocks store information about transactions like the date, time, and dollar amount of your most recent purchase, and your purchase is recorded without any identifying information using a unique “digital signature” sort of like a username.
Blocks store information that distinguishes them from other blocks. Much like you and I have names to distinguish us from one another, each block stores a unique code called a “hash” that allows us to tell it apart from every other block.
How Blockchain Works?
When you make a transaction, that transaction must be stored in a block and after your transaction has been verified as accurate, it gets the green light. The transaction’s dollar amount, your digital signature, are all stored in a block. There, the transaction will likely join hundreds, or thousands, of others like it. That block must be given a hash. Not unlike an angel earning its wings, once all of a block’s transactions have been verified, it must be given a unique, identifying code called a hash. The blocks are also given the hash of the most recent block added to the blockchain. Once hashed, the block can be added to the blockchain.
Why Blockchain is important?
Blockchain technology and its applications are unique and unlimited. It can be used in almost anything that can be traded, including money, goods, or real estate.
Any transaction with all its details is recorded in the general ledger and all parties to the transaction can access these details. Blockchain needs participants to survive and be safe, so there needs to be an incentive to get the participants involved. For example, many public blockchains, such as Bitcoin and Atrium, use a concept called mining to motivate network security.