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What is Blockchain?

what is blockchain

History of blockchain

Blockchain has the potential to grow to be a bedrock of the worldwide record-keeping systems but was launched just 10 years ago. It was created by the unknown persons behind the online cash currency bitcoin, under the pseudonym of Satoshi Nakamoto.

1991

A cryptographically secured chain of blocks is described for the first time by Stuart Haber and W Scott Stornetta

1998

Computer scientist Nick Szabo works on ‘bit gold’, a decentralised digital currency

2000

Stefan Konst publishes his theory of cryptographic secured chains, plus ideas for implementation

2008

Developer(s) working under the pseudonym Satoshi Nakamoto release a white paper establishing the model for a blockchain

2009

Nakamoto implements the first blockchain as the public ledger for transactions made using bitcoin

2014

Blockchain technology is separated from the currency and its potential for other financial, interorganisational transactions is explored. Blockchain 2.0 is born, referring to applications beyond currency

The Ethereum blockchain system introduces computer programs into the blocks, representing financial instruments such as bonds. These become known as smart contracts.

2015

Number of merchants accepting BTC exceeds 100,000.

NASDAQ and San-Francisco blockchain company Chain team up to test the technology for trading shares in private companies.

2016

Tech giant IBM announces a blockchain strategy for cloud-based business solutions.

Government of Japan recognizes the legitimacy of blockchain and cryptocurrencies.

2017

Bitcoin reaches $1,000/BTC for first time.

Cryptocurrency market cap reaches $150 billion.

JP Morgan CEO Jamie Dimon says he believes in blockchain as a future technology, giving the ledger system a vote-of-confidence from Wall Street.

Bitcoin reaches its all-time high at $19,783.21/BTC.

Dubai announces its government will be blockchain-powered by 2020.

2018

Facebook commits to starting a blockchain group and also hints at the possibility of creating its own cryptocurrency.

IBM develops a blockchain-based banking platform with large banks like Citi and Barclays signing on.

What is blockchain

At its most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words “block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public database (the “chain”).

“Blocks” on the blockchain are made up of digital pieces of information. Specifically, they have three parts:

  1. Blocks store information about transactions like the date, time, and dollar amount of your most recent purchase from Amazon. (NOTE: This Amazon example is for illustrative purchases; Amazon retail does not work on a blockchain principle as of this writing)
  2. Blocks store information about who is participating in transactions. A block for your splurge purchase from Amazon would record your name along with Amazon.com, Inc. (AMZN). Instead of using your actual name, your purchase is recorded without any identifying information using a unique “digital signature,” sort of like a username.
  3. 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. Hashes are cryptographic codes created by special algorithms. Let’s say you made your splurge purchase on Amazon, but while it’s in transit, you decide you just can’t resist and need a second one. Even though the details of your new transaction would look nearly identical to your earlier purchase, we can still tell the blocks apart because of their unique codes.

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Although blockchain technology can sound confusing at first, it is actually pretty simple to get to grips with. Ultimately, it is a list of public records, also known as a public ledger, where transactions between parties are listed or stored. Each record, known as a ‘block’ within blockchain terminology, is secured using cryptography.

The Blockchain is an open record of all the Bitcoin exchanges, which keeps on developing exponentially. Blockchain enables gatherings to execute safely without an outsider middle person and obviously, a few organizations perceive the potential funds associated with Blockchain or other conveyed record innovation.

Scientists and technologists alike are discussing how blockchain innovation is the following enormous thing crosswise over ventures from the fund to retail to even medicinal services. As indicated by Gartner, their customer request on blockchain and related points have quadrupled since August.

There are a bunch of blockchain advancements that utilization brilliant contract, however, the greatest of all is Ethereum. Ethereum is made and outlined in a way that it bolsters keen contracts. Savvy contracts are modified in a unique programming dialect called Solidity.

Blockchain is immediately embraced by numerous organizations. In the event that you need to use Blockchain Development, it is vital to comprehend different basics and key ideas of Blockchain. It opens the maximum capacity of Blockchain.

You can understand what is Blockchain better by watching this video:

Source:

https://builtin.com/

https://www.forbes.com/

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