WHAT’S BLOCKCHAIN TECHNOLOGY?
If you have ever wondered what technology made things like Cryptocurrency, NFT’s and web 3 possible, then this article is for you.
A blockchain is a digitally distributed, decentralized, public ledger that exists across a network.
In more simpler terms, a blockchain is a ledger that collects information in groups known as blocks. The first-ever block created is known as the genesis block. When the genesis block got filled up with data, a new block was created and linked to the genesis block using a set of rules known as consensus mechanism, when the new block gets filled with data, its linked with the previous block forming a chain of data called BLOCKCHAIN.
How is the blockchain secure?
Through a consensus mechanism known as Proof of Work. It’s a process that allow miners of a network to confirm transactions. It requires a lot of energy and powerful computer to solve puzzles before a transaction is recorded.
Who created blockchain technology?
It was created by a person or group of people (we don’t know this for sure) using the name Satoshi Nakamoto in October 2008. He made use of the technology in creating the first ever successful cryptocurrency bitcoin.
FEATURES OF BLOCKCHAIN
1)IMMUTABILITY: it’s the state of being unchanged. Any transaction that’s being recorded on the blockchain cannot be undone. its achieved through cryptographic hashes for stamping a transaction. This makes blockchain reliable and trust worthy as there’s no case of a miner changing after they had all agreed.
2)DECENTRALIZATION: another interesting feature of blockchain tech is that it’s not controlled by any government or president. The data on the blockchain is being distributed among several networks at different locations. That’s why no single miner can change the record of a transaction. Therefore, anyone with access to the web can use it to store valuable assets without needing a third-party.
3) SECURITY: the records on the blockchain network are secured though network. Cryptography is a mathematical procedure use to encode and decode data. Each member has a private key for access and serves as a personal digital signature and a public key for confirming transactions from other people.
USE CASES OF BLOCKCHAIN
Although the first use case of blockchain technology was in finance sector. Developers discovered blockchain tech is not limited to only cryptocurrencies. With the numerous features of this technology, it can be helpful in other industries. It can be used in the supply chain industry to track goods from it’s place of production to its destination. Companies can also use cryptocurrencies as a means of payment for faster transactions.
The healthcare, voting system, real estate industry and clothing and textile are not also left behind. Blockchain technology is improving daily and has come to change lives and industries as a whole.