What is Blockchain aka Distributed Ledger Technology – Blockchain Council

There are a loterijlot of talks about Blockchain te the market. You might have heard that it is related to Bitcoin but how exactly it is related? You have no clue. Let mij explain the Blockchain ter a common human language and help you relate it to your real life scripts or objects.

Let’s commence with very basic. The blockchain is nothing but a gegevens structure (rangschikking of textual gegevens) available on hundreds of thousands of computers all overheen the world. The gegevens structure can be anything which holds the gegevens te some structured way. It can be your excel sheet, MySQL table, your book, etc.

If you can imagine distributing a master excel sheet to thousands of computers at the same time and let all the machines sync with each other to keep that master excel sheet always updated then you understood the Blockchain already.

Here is the explanation of Blockchain using some standard keywords:

  • It&rsquo,s a decentralized database which stores information te the form of transactions
  • It can be public (wielded by thousands of people) or private (eg. possessed by Corporation)
  • Stored gegevens is Immutable (Gegevens once recorded can not be switched)
  • Very secure (Because wielded my numerous computers)
  • Gegevens gets recorded via consensus-based algorithms
  • Uses cryptography (for verifying the gegevens &, sender)
  • Generally, exist overheen peer-to-peer network

Here is our definition:

&ldquo,Blockchain is a consensus-based secure decentralized public database which stores information immutably overheen peer-to-peer network&rdquo,

Real Life analogy?

(source: bitsonblocks.televisiekanaal)

Let’s relate Blockchain with a real life example through which you can lightly understand it. Consider a book’s PDF opstopping which is nothing but a chain of pages. Here PDF is the Blockchain and a pagina is the Block. Each pagina/block has some lines of text which are nothing but the transactions. So each block has numerous transactions inwards it just like a pagina has the textual lines. Just like a pagina can not have more than a certain number of lines ter it, a Block can not have more than a certain number of transactions inwards it.

I hope everything is clear up to this point. Now imagine if wij liquidate a pagina from the PDF verkeersopstopping, can wij catch the missing pagina? Your reaction would be yes because wij have the pagina number on each pagina and if someone liquidates a pagina wij can detect it lightly. Well, that’s a valid point and ideally right.

But can you catch the alteration of the pagina text with pagina numbers?? The reaction is big NO. But Blockchain has sorted out this very smartly. Ter blockchain, not just a block deletion can be identified but even a single bit of switch te any one the block te the chain can be caught very lightly. But how?

What’s Inwards the Block?

Just imagine, if wij somehow manage to crunch the entire current pagina’s content into a unique string and append it to the previous pagina’s signature along with a random number then crunch this fresh string again and call it the current pagina’s signature. I am sure you might have lost it ter inbetween, so let’s look at this below formula to understand it.

Spil you can see above, if you do this to every block/pagina and then you alter even a single character of any pagina, anyone can detect that switch by calculating the pagina signatures of the blockchain serially. If the calculated pagina signature matches with mentioned pagina signature then block has not bot altered but if the pagina signature is not matched then it means the content of the pagina has bot altered. By altering the pagina content of pagina number n all the signatures followed by this pagina will also become invalid because all the pages are connected to the content &, signature of the previous pagina directly or indirectly.

Gegevens stored ter Blockchain is very secure &, immutable. Te brief, it means it is very very difficult spil well spil expensive to forge or modify a transaction and it is enormously effortless to detect the inconsistency &, forged gegevens/transaction/stored information.

The above real life analogy is just a basic example because there are hundreds of other things spil well to consider while understanding the blockchain.

You can also virtually imagine it spil a long list of memory blocks connected to each other sequentially te a very very knit manner. Where thesis blocks are stored redundantly te numerous computers spread all overheen the world making it very available &, swift. Everything ter those memory blocks is stored spil a transaction.

Those transactions are confirmed by the participating computers through some overeenstemming algorithms making it very difficult to forge, delete or modify the transactions. However transactions are visible to every connected laptop but yet no one can trace that who are the parties associated with those transactions. Until unless those parties announce it by themselves.

Bitcoin is the application of Blockchain Technology and can be considered spil build on top of Blockchain Technology. Just like Google is built on top of Internet, Facebook is built on top of Internet bitcoin &, other cryptocurrencies like Ethereum, Dash, Litecoin all are built on top of Blockchain.

  • It is a decentralized distributed ledge (gegevens structure) where gegevens is being stored inwards blocks te form of transactions.
  • It liquidates the dependency on the trusted third party for recording the gegevens ter Blocks because of everybody does it together by coordinating with each other.
  • Te public Blockchain, More elaborate algorithms are required to avoid the malicious activities.
  • Since each block is built on top of previous Block immutability has bot achieved.
  • Very difficult to fake a block &, very very effortless to detect the fake Block.
  • This all exist te the memory of the computers.
  • Every participant of the Blockchain contains the almost same copy of the Blockchain.

Related movie: Earn from Bitcoin Mining without investment ! Earning Proof (Movie On Request) – SIDDHARTH kanojia

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