What is a blockchain technology?
The blockchain is an undeniably brilliant invention, made by person or group of people that go by name Satoshi Nakamoto. Since then it has evolved into something more significant. But, the essential question, what everyone has been asking is: what is a blockchain? By allowing information to be transferred and not copied, blockchain creates a new revolution on the internet. Initially, it has been used in digital trading currencies, but now IT experts are trying to find the new uses and potential for this technology.
Often you can hear that bitcoin is called digital gold and for a good reason. To date, the entire value of the currency is close to $9 billion. On the other hand, the blockchains can make other types of digital value. Like with the internet, you don’ need to know how it works, to be able to use it. However, having the basic knowledge of this technology can help you progress further.
The blockchain isn’t only for bitcoin
The blockchain is a massive database, that is validated by a broad community, rather than one authority. It collects the records of all transactions and makes it public. Each block has a number of transactions recorded, and the chain feature connects them all. When the records are created, they are validated by a distributed network of computers and linked with the previous entry in the chain. In this way, they are making a chain of blocks or blockchain.
Considering that blockchain is controlled by a massive network of computers, it means that no one has the complete control over its history. This is an essential feature because no one can go back and alter the things. In this case, the blockchain is a public ladder that cannot be easily tampered with. Even though blockchain is often connected to digital currencies, many organization are trying to use it for other purposes. They are attempting to establish a voting system and implement its features into a health care system.
Where did the blockchain come from?
Although the blockchain technology has been efficiently used in the last decade, its origin goes back fat further. In 1976, a paper on New Directions in Cryptography argued about the idea of a mutual distributed ladder, which is what blockchain is now. But, it would take us a couple of decades and powerful computers to fully implement this technology and make these ideas useful.
To validate the blocks in the same way traditional transactions are approved, you need the help of blockchain employees, in this case, the assistance of powerful computers. Considering they need to have an excellent configuration, they are often expensive, consume a lot of electricity, and you need to keep them cool. This is one of the reasons why bitcoin acted as an excellent start to the introduction of blockchain technology. It will always reward the users who are taking part in this process, which is called mining. Every time people validate a transaction, they make money.