We have heard of bitcoin and cryptocurrency, but have you heard of the technology that it is built on and what do you know about it?
Let us explore blockchain, how it works, and how it can be used.
In a country, the central govt holds power in a centralized fashion. This can be called a centralized chain. Blockchain is ideologically opposite to this type of control. It proposes a structure where no one single entity controls anything, nothing is central, everything is the opposite of central, the opposite of central in this context is decentral. A decentralized system is where every single individual can control the whole system. Everyone has a chunk of the control.
A blockchain is a system where the controlling power of the system is decentralized and distributed to the individual parts of the system. As far as the internet goes, a single block is basically a long list that contains the whole history if the system and all the transactions that have occurred. A giant ledger of sorts, that holds all the information which is then given to every node in the system. This means everyone can check and verify all the transactions in a block which is basically the power to check and verify all the transactions in the system. This means that no one entity can just decide to change the system, alter any transaction or change the history. This works well for ownership of items because this means no one entity can just transfer ownership of any asset, for example, a bitcoin or any money, to themselves. Every other block in the chain would then just verify this transaction, find it to be incorrect, and then refresh the altered block as most of the other blocks can consistently prove that, that transaction is fraudulent.
This also implies that to take over a blockchain, one must then hack or control more than half the nodes in the blockchain, and only then will you be able to control or alter any data on the chain. This is not a realistic tendency as we know how difficult it is to hack into just one system, imagine a basic chain with a million users or nodes, it would be impossible to hack more than half those systems.
It is easy to break one stick, but difficult to break a bunch of sticks stuck together. Applies everywhere including the blockchain, and the more number of blocks that exist on the chain the more secure and strong it becomes.
A blockchain is a store of a transaction between two entities. It could be a transaction of you selling your house or car, any transaction between two entities that both entities agree on can be stored on a blockchain.
This is an incredibly robust technology that is still up and coming, get on the wagon as soon as you can and learn more about blockchain. Fun Fact: The historians of the world are trying to store the history of the world on a blockchain as this means no one can just go and change anything in the history records that easily. It is common knowledge that a lot of history has been changed or wiped by people who wanted certain facts to be changed, and storing this data on the blockchain would mean that no single entity could change the records.