What is Blockchain Technology briefly explain how it works? we will divide this article into two parts; in the first part, we will introduce Blockchain Technology. The second part is about how technology works.
i. History of Blockchain Technology
ii. Secure and Reliable Model
iii. Blockchain Technology for other business
2. How does Blockchain Technology work
i Blocks (Data, Hash, Previous hash)
ii. Proof of work
The purpose of creating Blockchain technology was that there should be a system in the hands of the public, many people think that Bitcoin and Blockchain are the same kinds of technology, but it is not at all; Bitcoin is made using Blockchain technology. All the businesses before the Blockchain technology was centralized and controlled by someone; for example, A businessman has a transaction of their data in a register, ledger, or computer-based application.
Every businessman can change or eliminate these data because he has the authority. But such a business that is designed using Blockchain technology, no one can be made tampering or change; that is why Blockchain technology is given a lot of importance nowadays. To better understand Blockchain technology, first of all, you must know what centralized and decentralized-based models of businesses are? What is Blockchain Technology briefly explain how it works?
History of Blockchain Technology
Blockchain technology is based on a decentralized model; the idea of Blockchain technology was given by Stuart Haber and W. Scot Storneta in 1991. In 1998 computer scientist Nick Szabo cleared the mechanism of digital currency, whose name was Bitgold. In 2000 Stefan brought out his idea to secure the cryptographic chains of blocks and their implementation. In 2009, Satoshi Nakamoto wrote a white paper or article in which he gave information about the first Blockchain ledger and invented Bitcoin using this fantastic technology. What is Blockchain Technology briefly explain how it works?
Secure and Reliable Model
Corruption and money laundering is the fundamental reason for launching this model when the money is transferred illegally. Then the record is stored in any bank’s database or application and in the database of these companies by which money is sent. That’s why it’s a problem worldwide that we don’t believe in this kind of database because this database can be changed by authority people.
A system introduced in the form of a Blockchain is one in which the data is available where a large number of people are involved and cannot be changed by anyone, or changing, and tempering is near to impossible; that’s why Blockchain technology is considered very safe and secure. We will understand its system in detail in the second part. What is Blockchain Technology briefly explain how it works?
Blockchain Technology for other business
Many people think that Blockchain technology is only made for Bitcoin, but it is just a fairy story that can be made by the popularity of Bitcoin. We can do business or create applications based on the Blockchain technology model. For example, in the real estate business, we can create a database with the help of Blockchain technology from which you can check the data of your property from generation to generation, and anyone can’t change it; it can be tracked in the same way. What is Blockchain Technology briefly explain how it works?
We can use this technology to enter patient data and descent to track. The entire hospital and medicine data are very safe, secure and reliable. If the patient’s entire data is stored in the centre, no one can change it. The other example is that we can create a university management system using this technology, where the data of the students, the data of their courses, the data of their results, students and staff attendance etc. With the help of Blockchain technology, you can create an application like YouTube and Facebook.
How does Blockchain Technology work
If we understand in simple terms that there is a store with products, there are two types of products, one will be the purchase of products, and the second will be the sale of products. Whenever a product is purchased or sold at the store, it will be entered in a register, ledger, or a computer base application like excel, word, etc. Similarly, there are two ledgers in the Blockchain; one is blocks, and the other is chains of their blocks. What is Blockchain Technology briefly explain how it works?
Any data we enter in a block will be done in the first block. Then we will enter the data in another block and connect the second block with the first block. The chain will be built, and we will continue to enroll the data in the third block along with the second block; we will do it continuously in blocks, and so these blocks will be allied to each other. In simple words, we can say that the blocks containing data and connecting blocks like a chain are the model of this technology.
Blocks (Data, Hash, Previous hash)
First, we will discuss the block; there are three types of data stored in a block; first, the data means related information to our product.
The second is hash of the related information will be used like our biometric system like, we have a unique thumbprint, similarly in the blocks we can say hash is working like our thumbprint, the hash is a unique code created in the block, The third thing that will be in the block is that of the previous hash of the block, the previous hash in the first block (Genesis block) will be zero and then so on.
Proof of work
In Blockchain, if we go out to change the data of any block, then the first thing has happened is that the hash of the block has changed. The other blocks are also changed when the respective block’s hash has changed. After that, you must change the hash of the entire block, so it is complicated.
The story doesn’t end: the blocks having transactions have a copy to people in the network. A copy of the entire Blockchain means if you can’t make a change within a document like you want to make the change, it will have to be shared and designated by the people doing the work. What is Blockchain Technology briefly explain how it works?
If yes, you will have to change the code of all these blocks so that it will come here in an hour, and then the people of the whole network demand proof of work. After giving that you want to add any new data and share it across the entire network, people in the association will say that this recent change is correct. So, changing blocks is near impossible by changing the hash and the copy of the whole project within the network.
The people connected through the computers in each Blockchain within the network are called nodes or miners that they provide to their computers to run the entire network. Whenever a new block contains related information in the network, these miners verify whether it is true or false.
With the help of Blockchain, other cryptocurrencies and Bitcoin created whatever nodes or miners it contains when they do any transaction, whatever they do for mining or transferring data. In simple terms, if we understand it, nodes are service providers connected in a network with their computers in large numbers; no third party is involved because Blockchain is a fully decentralized model.
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