Blockchain is the continuation of a human story.
It’s new and exciting. Moreover, it claims to end world poverty. Without further ado, let’s move into what exactly is Blockchain?
What is Blockchain?
Blockchain is simply a database. But there is a difference between blockchain and a typical database. Blockchain collects information in groups called blocks. Those blocks contain storage capacities that are chained together, one by another. Each data block is bounded and secured with each other with cryptographic principles. It is also known as Distributed Ledger Technology (DLT).
To make you understand clearly, I would take a simple analogy of a Google Doc. We use Google Docs to create and share documents collaboratively. It gives access to people at the same time.
Moreover, this technology does not have a central authority unlike present and traditional governing bodies. This is open and visible to everyone, with each member being accountable for the transactions involved. Similarly, we can modify the document in real-time and is transparent between all users associated with the doc. Or take the example of Wiki, an open infrastructure that is available to the public registry. This decentralized database allows transactions secured through cryptography.
So, it’s neither a company nor an app. In fact, Blockchain is the vision of developers who believe that there is a loophole in the present banking system.
Evolution of Blockchain
Though blockchain is a new technology, it has evolved since 1991.
1991: W Scott Stornetta and Stuart Haber described a secured chain of blocks using cryptography.
1998: Nick Szabo, “a Computer Scientist” decentralized digital currency through bit gold.
2000: Stefan Konst published cryptographically secured chain and implementation ideas.
2008: This was one of the major transitions in the history of Blockchain, where a developer with the pseudonym “Satoshi Nakamoto” published a whitepaper explaining the blockchain model.
2009: Satoshi Nakamoto implemented a public ledger for the transaction using bitcoin.
2014: Ethereum blockchain introduces computer program to block.
Who are the users of Blockchain?
With the introduction of a wallet application known as “blockchain GUI”, people can make transactions using Bitcoin. Finances provide strong use cases for blockchain technology. Likewise, the concept of blockchain can be implemented in areas like Sharing Economy, Crowdfunding, Supply chain, Governance, Intellectual property protection, IoT, Stock trading, and many more.
Bitcoin is the evolving concept that comes together with Blockchain. Here is some preliminary insight.
What is bitcoin?
Bitcoin is decentralized money. It was launched in 2009 and claims to be the first cryptocurrency.
Humans have been exchanging value since the old days. To lower uncertainties, we exchange value with developed institutions like banks and governments. However, bitcoin is based on peer-to-peer technology. This includes a wide network of individuals, with volunteering editors. Information can be read can only be read by sender and receiver. So, this helps to create a currency that is backed by code without the intervention of central authorities and physical entities.
To be precise, this payment system is based on the foundation of cryptographic technology rather than mutual trust.
Technology should be invisible and beautiful
They say technology should be beautiful and yet invisible. It can be the radical evolution of how we trade.
In the era where the centralized system can be hacked, this new chain technology seems unshakable and unbreakable. This technological capacity to create records of human transactions in a new way is yet to be discovered.