What Makes Blockchain Technology Different? It’s Ledger and How It Works: A blog on what is Blockchain Technology, how it works, and how you can use this technology in your life.
What is Blockchain Technology? To put it simply, it’s a distributed public ledger of all transactions in a network. But what does this mean? And more importantly, who cares?
Whenever we hear or read the word blockchain technology, it makes us think of Crypto-currency – bitcoin and such kinds. But it’s much beyond that. Some might also understand blockchain as a form of technology that exists as public ledger distributed on the network. But there is more to this technology than its definition suggests.
Nowadays a lot of people talk about cryptocurrency and its underlying technology – the blockchain. But not everybody understands what blockchain really is, how it works, and how it’s different from Bitcoin.
We don’t want to bore you with a long-winded explanation, but we do want you to know what some of the most important terms mean so that when they come up in conversation, you can at least participate in the conversation. (You’ll impress your friends!)
Here’s a quick rundown of the biggest concepts:
A blockchain is a public ledger where transactions are recorded chronologically and publicly. It’s like an online database that anyone can access—which is why it’s called a “ledger.” Anyone who uses blockchain technology has access to this public database and can see each transaction as it happens. Blockchain allows transactions to be processed without using a third party such as a bank or government organization.
You may have heard about Bitcoin, which is probably the most famous example of blockchain technology in action. Its purpose is to allow users to make transactions with each other directly and anonymously, instead of through banks, which often take up to three days to process those transactions. Bitcoin was created by an anonymous person or group of people named Satoshi Nakamoto in 2009, but no one knows who Satoshi really is.
The Blockchain is a distributed ledger technology that enables the secure transfer of digital assets without the need for a trusted third party.
Blockchain is a chain of blocks that contain data. The chain is stored across multiple computers or nodes, each of which has a complete copy of the blockchain. All these copies are kept in sync and updated when new blocks are added to the chain.
A transaction is broadcasted and verified by all nodes on the network before it’s written into a block, which is then appended to the blockchain. If there’s any malicious intent detected, the transaction won’t be verified and will be ignored.
Smart contracts are actually really amazing blocks of code that get permanently migrated onto a blockchain.
While the buzz about blockchain may not be mainstream just yet, you need to take note that it is a highly promising technology for a variety of industries. I think we at Tradine should start educating people more about these fascinating concepts so that the blockchain revolution can begin. Stay tuned for more information about how blockchain and it’s ledger will change your world.