Blockchain, bitcoin, cryptocurrency, ethereum all are trending topics these days. Everyone is talking about this even who are not involved with the crypto world. But I think there are thousands of people out there who want to know what the hack is Blockchain. That’s the purpose of this post — trying to describe in the easiest way possible.
What is Blockchain?
A blockchain is a data structure that handles distributed database operates by the group of individuals.
The blockchain is a peer-to-peer technology with no central authority or third party.
Still not getting ? or do you think why do we need this?
Let’s consider an example of two friends Taral and Kishan to clear all questions:
What is happening here? Kishan and Taral both trusted the bank to manage their money. The bank is there to handle all the transactions. Ultimately we need the third party to manages and handle our stuff.
What if we can remove them? The blockchain is here for that, to establish one-on-one trust in the digital world.
Blockchain allows participating to create digital ledger (collection of records) and share it among the individuals without the need for a central authority or third party to enforce the rules. The removal of central authority from data structure is one of the powerful aspects of the blockchain.
When you do a transaction, it creates permanent record and history of the transaction. It’s extremely difficult to change or remove the recorded data. This capability has never existed before. It can create trust in the digital-data world. They create an honest and safe system without the need of the third party or central authority to enforce the rule.
The common misconception on bitcoin and blockchain:
Bitcoin and Blockchain are often used interchangeably, but they’re not the same. The blockchain is a protocol. Bitcoin, Ethereum, Ripple all are using this protocol to enable secure transfer inside a network. Bitcoin is the name of cryptocurrency which runs bitcoin network.
It is a technology as we see above. So I am concluding here with the basic introduction on the blockchain. It is giving us trust factor in the digital world by features which are not presented before. The world is considering it as the new evolution in Digital-world. The possibilities are endless with this technology. Let’s see where it’ll go.
