What is Blockchain : Have you heard the name of Blockchain, if not then it doesn’t matter. If you know about bitcoin for sure, then it will be easy for you to understand just blockchain, because the record keeping technology of bitcoin is called blockchain. And it also relates to other forms of banking and investing in addition to cryptocurrencies like bitcoin.
So it would be better that you know about it and for this you have to read this article completely. So let’s start and first of all understand Blockchain well that what is Blockchain: Definition, Types, Benefits
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What is Blockchain : Definition, Types, Benefits
Basically Blockchain is a kind of database. And what is this database? Database is a collection of information. Which is stored electronically on the computer system. In this database, information and data are set in a table format. So that Searching and Filtering of any specific information can be done easily. Well, a Spreadsheet is also in table form. But that’s why the database is different. Because spreadsheets are designed for only one question.
Whereas any number of users can use the database at once. The purpose of blockchain is to allow digital information to be recorded and distributed. But not to edit. This technology was first exposed in 1991 through Stuart Haber and W. Scott Stornetta. But blockchain got its first real world application in 2009 with the launch of bitcoin.
Why is it called Blockchain?
The reason for this is that Blockchain collects the information in the form of Groups. And these groups are also called blocks. Each block has limited storage capacity. That’s why when a block is filled, it gets connected to the previously filled block.
In this way a chain is formed. Chain of data and hence it is called blockchain. And now we know that the Elements of Blockchain, which together make up the Blockchain. And also know the way this chain works.
What are the Elements of Blockchain? , How does Blockchain work?
This Blockchain is such a chain that contains information. Each block has a cryptographic hash of the previous block. This hash is generated on every transaction and is a string of numbers and letters. A hash is a connection that converts the input of letters and numbers into a fixed-length encrypted output. This hash does not only depend on the transactions but also on the transaction hash created before that in the chain.
If even a small change is made in the transaction, a new hash is created. That is, if any attempt is made to tamper with the data of the Blockchain. So all its settings get changed. And in this way the manipulation in the record can be detected. That’s why it is a secure option.
What is Nodes in Blockchain?
This Blockchain is spread on many computers. And every computer has a copy of the Blockchain. These computers are called Nodes. These nodes check the hash and find out whether there has been any change in the transaction, if most of the nodes approve the transaction. So that transaction is written in a block. These nodes form the infrastructure of the blockchain.
It stores and preserves blockchain data. A full node is a device like a computer. Which has a full copy of the transaction history of the blockchain. This blockchain updates itself every 10 minutes. What are the Important Elements of Blockchain? And how do they work together? After knowing this, now let us tell you how the blockchain is useful for bitcoin.
How is Blockchain Useful for Bitcoin?
Blockchain is a specific type of database for bitcoin. Which stores every bitcoin transaction. In cryptocurrencies like bitcoin, the blockchain spreads these currency over a network of computers. Due to which it is possible to operate these currency without any Central Authority.
Risk is also reduced by its use. And many processing and transaction speeds are also eliminated. The Blocks That Are In The Blockchain Of Bitcoin. They store the data of monetary transactions. But in reality the blockchain is reliable for storing other types of transaction data as well.
Where can Blockchain be used?
There are many such areas. Where Blockchain can prove to be useful and can improve the services of many important sectors. For example, if you look at the difference between banking and blockchain, most of the finance institutions work for 5 days to 1 week. That is, if you want to deposit your check in the remaining 2 days of the week, then you will have to wait. And you also get check deposit done in working days. So the transaction can also take a lot of time.
In such a situation, the transaction process can be completed in 10 minutes through the integrating blockchain in the bank. Fund Exchange can also be done faster between Banks and Institutions through Blockchain. And talking about the healthcare sector, using blockchain in this, the patient’s medical records can be stored securely.
For this the medical record that should be generated and signed. Then it can be written on the blockchain. This will provide proof to the patient that their record can no longer be changed. The Time Private Key can also be used to store these records on the blockchain. So that their privacy is also maintained. Apart from banks and health care, blockchain can also be used in supply change and voting systems. Suppliers in the supply chain can keep a record of their purchased material in the blockchain. By which the authenticity of those products can be verified.
In the same Modern Voting System, election fraud can be stopped by using Block China. And transparency can also be maintained in this process with the Blockchain protocol. In this way, blockchain can be used in many sectors. And it has many advantages and some disadvantages.
Advantages of Blockchain :
Improvement in accuracy can be done through this transparent technology. Removing third party verification can result in cost reduction. Transactions can also be kept secure and private.
Drawbacks of Blockchain:
The drawback of this technology is that it is not free, because of its speed, it can do limited transactions every second. And it has been used in illegal activities.
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