What is Blockchain?
Posted on: 11/Oct/2017 12:05:54 PM
Blockchain or Block Chain is nothing but an ever-growing list of records. These are called blocks. With the use of cryptography, these records are kept linked and secured. There is a hash pointer in each block serving as a link to the previous block. There is a timestamp and transaction data with each link too.
In terms of its design, one cannot make any modification of data to the Blockchains. Ultimately, blockchains aid us as a comprehensive ledger where all transactions made between two particles can be effectively managed permanently.
To make use of it as a distributed ledger, the blockchain needs to be managed using a peer-to-peer network, abiding by the set of instructions meant for validating new blocks. After recording, data fed in a particular block cannot be modified retroactively without any kind of change in the other blocks, thus needing collusion of network majority.
In terms of design, these Blockchains are kept secured. They are examples of distributed computing system having high Byzantine fault tolerance. Hence, with blockchain, we can achieve decentralized consensus. Thus, blockchains are potentially suitable when it comes to recording events, medical record and other kinds of management activities. Including identity management, processing transactions, food traceability, etc.
Satoshi Nakamoto, an anonymous person or group has conceptualized this system of blockchain in 2008. It was then implemented in the following year and served as a core component for digital currency. This helped as a public ledger for making all kinds of transactions.
The problem was double spending was met with the help of first digital currency, eliminating the need for trusted authority or central server.
