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What Is BlockChain – Let’s say you sell a product online I want to buy it from you So what happens is I get my credit card And enter the details on your website Funds are transferred from my account from my bank account to your bank account It’s simple What if I tell you now that we can make the same transaction I can send money to you without banks without governments without anyone running us without any third party how? Simply via the blockchain.
What Is BlockChain ?
So what is blockchain? It’s simply a place to keep records It’s like a database. The data is recorded in blocks. These blocks are connected in series. This is why we call it the Blockchain.
Now, what makes this blockchain so special? It allows us to transfer money or currency without third parties. The main question here that anyone should ask. How safe is this? Who will guarantee the transactions if we don’t have a bank account or a government that manages all these transactions? Who will verify the correctness of our transactions? The answer is simply the blockchain itself. There’s no one to take over it.
How does this happen?
The idea is simple When we make a transaction on this blockchain this transaction. The data, sender, and receiver will be recorded in every single block in this blockchain. And when each block is treated singularly. Or what we call the contract on this chain must verify this transaction. The majority must accept it and approve it until it is accepted. That is why it is almost impossible to hack this system. Blockchain hack Because it is not related to the central administration. It is a decentralized network. As everyone in the chain has to accept what is happening on this network. This is what makes it so safe. It is almost impossible to hack or hack it.
So we have now learned two main features of the blockchain high security and decentralization. The third characteristic is that the blockchain is public and cannot be changed by anyone. So anyone can now browse the blockchain and see what’s going on. See all valid transactions. This is how you can ensure that your transactions are on the blockchain Verified by everyone on the blockchain.
The fourth characteristic is that the data in the blockchain is immutable. Which means you can’t change or delete. This is why if you look at the graph of any network in the blockchain. Let’s say that the Bitcoin blockchain. It is a cryptocurrency. You’ll see it evolve like this Because the data is always increasing. We always add data that we can’t delete or change. So it is always expanding. Now you heard me say Bitcoin.
What is bitcoin?
It’s simply a currency like a dollar or a euro or whatever. But since we want to work on the Blockchain, you need a currency that works on the Blockchain. This is why we need cryptocurrency. Encryption means a currency that operates under some encryption algorithms Call it Mathematical Algorithms related to coding. So Bitcoin is a cryptocurrency that runs on the blockchain.
So what you should know now is When you want to transfer money from one person to another on the blockchain, You can’t use dollars. You must use cryptocurrency to transfer like bitcoin Ethereum Cardano Ada XP etc.
By the way, blockchain is not only about cryptocurrencies. You can perform any type of transaction on the blockchain and save it on this secure network. It’s not just about money and coins. Maybe for example you can check the correctness of the voting systems you can do anything. Save any kind of data and do anything on this blockchain.
Hope you understand the basic terminology of What is BlockChain and Cryptocurrencies. If you have further queries on these then simply comment down below.
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