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What is Blockchain Technology? Guide For Beginners

Sandeep Mittal 0

What is blockchain technology in simple terms?

Blockchain is a technology that is able to transfer bitcoin currency from one individual to another individual . If a person wants to send money from India to London, we use it by banks, PayPal, it takes more than three days and also charges. But with blockchain technology, money can be sent to any corner of the world, without any banking sector, in few minutes it was invented in 2008 for bitcoin service. It is an open ledger.Blockchain technology started with crypto currency and is in research for public and government sector. Today, it is getting crypto currency in blockchain technology. In the coming days, banking sector will work in blockchain technology.It is also difficult to hack this technology, because hackers have to hack thousands of computers simultaneously on the same time.So this is the concept of block chain and it adds blocks one after the other, hence it is called block chain.

All the transactions that occur on one or two thousand computers, many approvals are required to update any database.

How blockchain technology works

All the transactions that happen, blockchain technology is stored in its leadger, in the blockchain network, it is an open ledger which is public, in which the people in the network are transferring money to each other, then it will be linked to the previous transaction.

If one person is transferring a money to another person, then the other person who will be in the network will be the miners who validate the transaction and add the block to the ledger, First of all, those miners will compete that who will do the first thing, the miner will do the validation of the transaction first. Will do and add to the block ledger, then it will get some rewards in bitcoin. In this, the miner first validates the transaction, checking that the sender has the balance they want to send, as being a public ledger, the miner can check and they look for the special which would be like a task puzzle. It is a block as soon as Solvay becomes a block add to the transaction.

A blockchain carries no transaction cost

No transaction costs are charged in the block chain technique. This technology can replace other business models that charge a small fee for the transaction. Blockchain technology can save online ticket booking and all credit and debit card transaction processing fees. The ticket is sold to anyone and records all transactions. Its details are found in millions of computers in the network.

The Three Pillars of Blockchain Technology

The three main properties of Blockchain Technology:- 

  • Decentralization
  • Transparency
  • Immutability

1. Decentralization

The more centralized entity has been used much before Bitcoin and Bittorrentz, in that they store all your information and the best example of a centralized unit can be taken from banks that store your data and you pay someone through the bank

The traditional client-server model

Traditional Client server Modal

If we talk about simple client server, then we search for something on Google, then a query goes to the server, that query comes back with information, then it will say simple client server.

Because they are centralized, all data is stored in one place which is easy for hackers to rock all the system whenever there is a software upgrade and if it is closed no one will be able to access that information and if the unit is corrupt and malicious, it can compromise all the data inside the block chain, in which the information is stored by a single entity.

If you want to talk to someone, you can do it directly without any other way, this way you are in charge of your money in it, you can also pay your money without going to the bank.

Blockchain Technology Explained

2. Transparency

Transparency is the most misunderstood concept of blockchain. People say that blockchain gives you privacy or else the details of any transaction is shown by the public address of the person, which is the name of the person is confidential and whatever the transaction will be. Is represented as “1MF1bhsFLkBPPP9vpFYEmvwT2TbyCt7NZG sent 2 BTC”

After securing the actual information of the person, you will see the transactions with their public address. If you know the public address of one of these big companies, then you can pop in such an explorer and see all the transactions and all these big companies. Uses cryptocurrency for transactions and block chain shows our transactions with our public address which can be seen by all connected in that network

3. Immutability

Immutabilityin blockchain mean when a block transaction entity block is entered then it cannot be tampered. It is very valuable for financial institutions and some people who cannot do the work of books and think that they are fiddle with the company

Blockchain technology gets this property due to cryptographic hash function

Hashing means taking an input of any length and giving a fixed output to a currency such as bitcoin through a hashing algorithm to take the transaction as an input using bitcoin (SHA-256) which gives the output of the length.

We will use the algorithm 256 to try this, no matter how large the input you give, the output will only give 256 bits but without remembering the input data which is much larger. You can track with hashes This is important when you are doing heavy transactions.

Block Chain Maintenance – Networks and Nodes

Maintain a blockchain, a peer to peer network is used. The nodes in the network are all interconnected. These computers are individual but use a special type of network that gives connected computers the split work called It is called peer to peer, which gives everyone the same rights and is a distributed and decentralized server.

Why do people use the peer-to-peer network

Today people use the peer-to-peer network to share files, if you use a client server to download it is very slow, it also depends on the system. If a Pier is left behind while downloading, then you have more Pier to download it and people say that it is prone to censorship. But it is not so it is not prone to censorship.It is also used to share the processing power and network bandwidth and storage of the system. Most files are used in sharing because they allow the computer to send files simultaneously.

Summary

Today we have Blockchain technology explained in this article that, it is getting crypto currency in blockchain technology. What is Blockchain technology in simple terms? Blockchain is a technology that is able to transfer bitcoin currency from one individual to another individual. It is an open ledger.Blockchain technology started with crypto currency and is in research for public and government sector. It is an open ledger.Blockchain technology started with crypto currency and is in research for public and government sector. Blockchain technology can save online ticket booking and all credit and debit card transaction processing fees. Blockchain technology can save online ticket booking and all credit and debit card transaction processing fees. Block Chain Maintenance – Networks and Nodes Maintain a blockchain, a peer to peer network is used. Immutability Immutabilityin blockchain mean when a block transaction entity block is entered then it cannot be tampered. BlockChain Maintenance – Networks and Nodes Maintain a blockchain, a peer to peer network is used. But with blockchain technology, money can be sent to any corner of the world, without any banking sector, in few minutes it was invented in 2008 for bitcoin service.

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