Blockchain What is it?

Hello! Viewer, Hope you are doing great, In this article I am going to share some insights of BLOCKCHAIN with you.

Why do we need this? now a world is run through data as data is deriving everything from listening song to going out for vacations, Actually when you are reading this art then also you are creating some data!, So for secure storing of data such that it is available, unfilterable and available through the world we can use Blockchain. Many companies are using blockchain technology in their supply chain like Microsoft Corporation, Oracle etc.

So a blockchain is a distributed database(consists of multiple files located at different servers or databases) that is shared among the nodes(a Blockchain node is one of numerous devices that run the BLOCKCHAIN protocol software and usually store the history of transactions and they are connect to each other in a decentralized peer-to-peer network.) of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the security of a record of data and generates trust without the need for a trusted third party. A blockchain includes an immutable record of events, which can be made auditable by every participant in the network.

Now you saw a term called database, so the Blockchain is a database?, Actually there is a difference, and the difference is how a data is structured. A Blockchain collects its information in groups called blocks, that holds sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled.

A database usually structures its data into tables, whereas a blockchain structures its data into chunks (blocks) that are strung together. Blockchain is a type of shared database that differs from a typical database in the way that it stores information; blockchains store data in blocks that are then linked together via cryptography.

What is the relation between Bitcoin and Blockchain?

The Bitcoin protocol is built on a blockchain. In a research paper introducing the digital currency, Bitcoin’s pseudonymous creator, Satoshi Nakamoto, referred to it as “a new electronic cash system that’s fully peer-to-peer, with no trusted third party.”

The key thing to understand here is that Bitcoin merely uses blockchain as a means to transparently record a ledger of payments, but blockchain can, in theory, be used to immutably record any number of data points. Blockchain is a transparent mechanism, whereas bitcoins operate on anonymity. Blockchain has a much more extensive use, while bitcoin is only restricted to exchange in digital currencies. Currently, tens of thousands of projects are looking to implement blockchains in a variety of ways to help society other than just recording transactions—for example, as a way to vote securely in democratic elections.

Why Blockchain is important?

According to the business point of view as business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared and completely transparent information stored on a non alterable ledger that can be accessed only by permissioned network members. A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and opportunities. The security is the one of the most crucial aspect for which the businesses wants to use blockchain in their transactions.

For more info regarding Blockchain you can go to the Wikipedia's, IBM's and various others webpage. I am attaching IBM's webpage url https://www.ibm.com/in-en/topics/what-is-blockchain

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Thanks for reading.