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You might have heard about Blockchain Technology already, but if you think it’s only meant for crypto, NO, it’s a lot more than that
Blockchain
Blockchain is a database in a distributed form that is shared among computer network nodes. Database stores data; Blockchain does the same as it stores information in digital form. It’s more of a data record list that will grow ever more and more data blocks will be added, the Blockchain will grow longer.
The data blocks get organized in an order, linked with one another, and cryptographic codes make it safe and secure from any changes. Also, its open availability makes it easy for anyone to participate in the network.
So in layman terms, Blockchain is an information recording system in such a manner that it becomes very difficult or nearly impossible to hack, change or corrupt the data because its decentralized, distributed, and digital ledger is available publicly.
Today we see blockchain technology being used for cryptocurrency projects, but development widens its use cases and the tech being used across different regions.
But when we try to follow its history, it dates back to the early 1990, computer scientist Stuart Haber and physicist W. Scott Stornetta to secure digital documents using cryptographic techniques in a chain consisting of blocks.
Above mentioned was a successful attempt of saving data from tampering fascinated and inspired further cryptography nerds and computer scientists. The trail followed attempts and trials, applying tech to different aspects one day, leading to the first cryptocurrency,
Bitcoin. The first decentralized digital assets were published in 2008 and launched in 2009 by a hidden entity behind the pseudo-identity of Satoshi Nakamoto.
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Basic understanding in regards of Blockchain’s working
Although Blockchain is a digital database, it’s far different from the latter. Keeping aside simple data fillings in the standard ledger, the digital ledger works simply by arranging blocks in chains one by another.
Those blocks mainly contain the actual data, hash code, which is a specific encrypted identity for a particular block, and lastly, the hash code of the previous block. The primary block in the chain, which could not contain the previous block’s hash code, is called the Genesis block from where the chain started.
Blocks get filled with information until their specific limit; after attaining that, it is closed and linked to blocks filled earlier. After another, those blocks continue to link and ultimately make a chain of blocks called a ‘blockchain’.
Blockchain in cryptocurrencies
Blockchain is older than cryptocurrencies yet got its fame and limelight after collaborating with the latter. The basic working of Blockchain followed by cryptocurrency working to store transaction details. Since Blockchain is decentralized and distributed among peers or nodes of computers, transactions are public.
Opposite to traditional ways of making transactions, there is a need for an intermediary, either bank or any other entity, during a transaction between two peers.
Blockchain makes the transaction possible without interference, be it a bank or anyone else. Security and surety of transaction is the responsibility of the network and nodes, making the transaction possible by approving it.
Blockchains working beyond cryptocurrencies
Years before, crypto developed and came out as a technology keeping data and information safe. After its popularity with Bitcoin, other projects, either crypto or non-crypto, seek the potential of technology.
For instance, take Ethereum Blockchain, which went beyond using it for transactions and payments and various other tasks. It made ‘Smart Contracts’ on the network, which are cryptographic codes of terms and conditions, which can be used to perform so many tasks by hundreds of projects.
Further development created decentralized applications, and even decentralized finance came into existence. These Dapps made it possible to use various applications we use today on our consent and under privacy instead of earlier systems under the centralized control of big tech companies.
Defi and Dapps also made finance and trading of currencies through decentralized exchanges available on Blockchain. They also acted as a base for the current crypto innovation, non-fungible tokens, and future-oriented projects like Metaverse and Web 3.
The world is without monopoly or under one authority where the user would have complete control over his content, data and information that is complete privacy seems possible because of ‘the blockchain’.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
