Blockchain is a term that people who are familiar with online transactions, stock markets, and cryptocurrencies will already know. Don't worry if you don't know what Blockchain is. You will know everything about Blockchain after reading this post.
At the moment, Bitcoin is the most popular way that blockchain technology is used. But Blockchain technology is also used in many different areas.
What is Blockchain?
Blockchain is explained in English as “blockchain a distributed, decentralized, public ledger”. A blockchain is a list of transactions that are kept in different places. For example, the server at a bank stores all the information about the money transactions we make there (one place). In blockchain technology, on the other hand, the same information is kept in different places.
When a transaction happens, the information about it is sent as a "block." The information in that block will be encrypted, and each box will be given a unique number called a "hash." Every box has its own hash. The hash of the first block is in the second block. Here is how each box looks. The name "Blockchain" comes from the fact that many blocks are linked together like links in a chain.
What does Bitcoin technology do with Blockchain technology?
Blockchain technology is used by Bitcoin, which is the most popular cryptocurrency. As far as our country is concerned, RBI is the organization of the government of India that makes money that can be used right now. In many other countries, money is made by organizations that belong to those countries. Using it to transfer money can only be done with the help of a third party, like a bank.
We use a bank to move money around. A bank account is set up for us. The account keeps track of how much money we put in and take out. We will use a bank card to pay for anything we want to buy. The bank will give the person who sold us the item the money from our account. When it comes to Bitcoin, a bank is not such a place. The information is then stored. How do they send the money?
The answer to these questions is the blockchain. Not everything about Bitcoin is kept on a single server. Instead, all of the information is kept in the accounts of everyone who can hold Bitcoin. It means that instead of the bank keeping track of our information, we each keep track of everyone else's. When someone makes a transaction, all the information about it is sent to all the servers that may be connected to the Blockchain network.
You might wonder what this is for. We can't be watched by an organization like a bank. Even if information on one computer has been hacked, it will be compared to information on other computers. So, it's clear that Blockchain technology is a way to store the same information in more than one place. Each technology may use Blockchain in a different way.
How Safe is Blockchain Technology?
There are three security features built into blockchain technology. Accordingly
- hash
- proof of work
- distributed network
1.Hash
For example, Bitcoin uses SHA-256, which is a hash cryptosystem. When someone sends or receives money, a block is made with the details. The sizes of the pieces of information in it will vary. Then, using SHA-256 encryption, they will give them a different name.
If hackers change the data in a block, the hash number for that block might also change. If it changes, the number of the block next to it won't match the number of the existing block. So it will be clear that there is something wrong.
2. Proof of work
With the help of today's supercomputers, many blocks can be opened very quickly, the information transferred, and then the pieces put together in the right way. To stop this from happening, a second safety feature has been added. This means that if you want to change something in a block, you have to go through the "proof of work" section.
The proof of work is being able to solve a very hard puzzle. To do this, you need computers with a lot of power. Even so, at least 10 minutes are needed. This is also hard because there can be millions of blocks in a blockchain.
3. Distributed Network or Network that is spread out
Let's assume that hackers also got this. The third security layer is called a "distributed network." So, everyone with a copy of the blockchain has the same information. Even if the hacker only changes the data on one computer, it might still be sent to all servers when a new block is made.
Then, other computers will see that fake block and not accept it. This means that a new block will only be accepted if 51% of the computers in a network agree with it. If hackers need to be caught, 51% of computers need to be hacked. This also can't happen.