What is Blockchains? , What does this have to do with bitcoin?. Blockchain is a way of digitally storing data that is interconnect from one device to another. The development of this technology is popular because it is widely use.
The use of blockchain itself is inseparable from cryptocurrency, although there are actually many other fields that use this technology.
One of the reasons why this technology has so many users is that many people think the system is more transparent, as well as being profitable.
Blockchain Definition
Blockchain consists of a mixture of 2 words, specifically block which denotes cluster and chain which denotes chain.
The name reflects how blockchain works, which uses laptop resources to form blocks that are connect to different places to carry out transactions.
As the name suggests, it can be a chain of sequential blocks that are assemble and distributed together. each block consists of a ledger and 3 components, namely info, hash, and hash of the previous block.
The type of information used in this technology depends on the purpose of the blockchain itself.
For example, in bitcoin, the info block contains all the details of the transaction, from the number of coins, to the sender, to the recipient.
Hash contains knowledge in various signatures or fingerprints or signatures. Hash is use to view the block and its entire contents during custom code.
The hash of the previous block is the half that carries the previous data path while securing the blockchain chain.
It can be a new technology developed for digital knowledge storage systems. This technology is connect through cryptography and its use itself is inseparable from Bitcoin and Cryptocurrency.
Although considered a contemporary technology, the initial plan for blockchain itself has been sparked by Scott in his journal entitled Journal of Cryptography: How to Time-Stamp a Digital Document since 1991.
How Blockchains Work?
Blockchain starts after a block receives new info. The blockchain system consists of transactions and blocks containing a series of cryptanalytic hashes and the previous block hashes to create a network.
It works by recording information that doesn’t change.
The decentralized nature of blockchain means this technology should not be forced to think of an external authority for the validation and integrity of the authenticity of the information.
This method may be a decentralized method that usually occurs between network nodes to confirm that the knowledge is valid.
After the decentralized method, further information becomes a new block. each block contains a new hash or code.
Although a typical blockchain transaction is an Associate in Nursing investment, the reality is that the blockchain will store different types of info in the same block.
Blockchain Utilization
Blockchain technology can be utilize in the financial sector.
The reason is, this technology can be a digital cash book that can be access by anyone, anytime, and anywhere easily without the need for approval from a financial institution like a bank.
It has indirectly facilitated the entire transaction process. Transactions are also more secure and transparent so as to minimize data misappropriation, such as bribery or corruption.
It can also be use in fields other than finance. The proof is, in 2018, McKinsey created a blockchain opportunity table for various fields, such as telecommunications, property, media, medical, and agriculture.
Blockchain Advantages
1. Prevent Middleman Charges
The presence of blockchain indirectly eliminates middlemen or brokers who often increase transaction costs. All recording and verification activities are direct and immutable.
Given that it is a technology that makes it easy for you to transact and maintain data privacy.
2. Better Protection System
In some existing systems, blockchain is consider to have a more secure system structure.
It also makes information protection keep blockchain abuse safer.
In its application, this technology uses a verification system by miners or miners before information or transactions enter the consequent method.
Even if you look deeper, this part of the blockchain information structure only has options for adding information and no options for posts.
In the absence of the AN edit feature, this implies that nothing will change the information.
3. More Transparent System
One of the advantages of this technology that makes many enthusiasts is a very clear system. This arises mainly in crypto matters.
Any group action that uses blockchain technology is often visible to the public as a whole. The public will be free to check every group action that occurs.
Those who will check even many are free because they don’t have to have access to login. Such a system also makes any coin inaccessible to anyone without the owner’s information.
4. Better Audit System
This is also one of all the benefits of blockchain technology. When everyone will track and think of all transaction data, audits can even be done very simply.
In addition, the potential for data loss is also smaller. This is because the database will only add data. Database cannot be delete and there are no features to edit or change data.
What does Blockchain have to do with Bitcoin?
Different types of data or information may be store on the blockchain. However, the most common use of blockchain technology so far is as a ledger for digital transactions.
In relation to bitcoin, it is use in a decentralize manner. It is very useful to ensure that the value of transactions sent from one individual to another does not change.
The decentralized nature of blockchain is also useful to ensure that the data entered is immutable. In the case of bitcoin, transactions are ensure to be permanently record and viewable by anyone.
