Blockchain Technology Step By Step Definition!
Blockchain technology has a special place in most people’s conversations these days, and most people do not have accurate and comprehensive information about blockchain technology; In this article, as much as possible, we will give a complete explanation about the blockchain, or the Distributed Ledger (information and reporting system) , stay tuned to Technelo.
What Is Blockchain Technology Exactly? In A Simple Word
As mentioned, blockchain is a kind of information and reporting system. The difference with other systems is that the information stored on this type of system is shared among all members of a network. Using encryption and data distribution makes it impossible to hack, delete and manipulate recorded information. In other words, the description is literally consists of (Block) and (Chain) and means a chain of blocks.
Of course, in the following, we will explain blockchain in more detail so that you have a better understanding of it.
History Of The Origin Of Blockchain
These days, when digital currencies are so prevalent, before the advent of digital currencies, people first wanted to have a confidential and secure money transfer system out of government control.
Some time later, a man named David Chaum developed the RSA algorithm in 1983; This pattern captures a string of numbers. In simpler terms, an individual sends a bank deposit with a specific string of numbers, then, the bank matches this string of numbers to a set of numbers, in which case the numbers are matched. Are different from the sequence of prime numbers; The bank will no longer be able to track its origin; This algorithm later became known as blockchain technology.
In 2008, Bitcoin maker Satoshi Nakamoto published an article on the Internet about bitcoin. In 2009, Satoshi introduced the Bitcoin currency as a replacement for traditional financial systems. After that, all the reactions to this currency were positive, and after a short time, the first block called Genesis, was created on the bitcoin blockchain platform.
Note: By referring to the following link: Bitcoin-Digital-Currency; You can also have more detailed information about Bitcoin.
Pros And Cons Of Using Blockchain Technology
- Reduce costs by eliminating intermediaries
- Changing information is difficult and almost impossible
- Increased accuracy in doing things due to the elimination of human error
- The transactions made in it are transparent and with good security
- All transactions are done in complete security and are private
- Blockchain is a decentralized network
- The high cost of bitcoin mining
- Low number of transactions per second
- Possibility of use in illegal activities and exchanges due to the non-traceable nature of transactions
- Government Laws and Regulations on Digital Currency
How Does Blockchain Technology Work?
The easiest way to understand how blockchain works is to understand how transactions are made in the Bitcoin digital currency.
When a transaction is made in the blockchain network via Bitcoin digital currency, the transaction information and details are stored in a block after the transaction is confirmed and transferred to the blockchain network; In this case, if a user wants to trade a bitcoin more than once (ie fraud), according to the information recorded from the previous transaction in the network; Blockchain prevents it.
The Genesis block is the first block in the chain and also connects the new blocks to the previous one.
Types Of Blockchain Networks
- Public Blockchain
- Private Blockchain
- Consortium Blockchain
- Hybrid Blockchain
The Main Elements Of Blockchain
Each block in which transaction information is stored has an identification code called a hash, a hash of text strings generated from a specific mathematical function; A block is added to the Blockchain network after receiving a dedicated hash.
The information stored in the blockchain network is not stored on a specific server, but each device or computer that connects to the network receives a copy or duplicate of the information of the connected blocks; The devices or computers that receive the information are called nodes.
Note: Connect to the blockchain network, click on the following link: to know that how to connect to the blockchain network.
Blockchain Technology Use Cases
In this section, we will only mention some of the specific applications of blockchain, so do not forget that wherever a database or system for data sharing was needed, blockchain can be used and the need for trust can be eliminated.
8 specific applications of blockchain technology:
- Elections and voting
- Supply chain and interception
- Copyright Law
- Tokenize assets
- Health field
- Decentralized organizations and institutions
Elections And Voting
One of the reasons for using blockchain in the field of elections and voting is the lack of transparency when voting. Using blockchain technology, elections and voting can be transparent and decentralized; Also, the votes are counted automatically, so it is not possible to rig the elections despite the blockchain.
One of the reasons why large-scale voting and elections did not use blockchain is the lack of proper infrastructure, but in some cities in the United States and South Korea, blockchain has been used on a trial basis in small elections. The result was good, and participants were able to vote using their smartphones.
One of the most popular applications of blockchain can be used in cryptocurrencies such as Bitcoin, which is also the first cryptocurrency.
Using blockchain encryption on Bitcoin or other currencies; In addition to the fact that your identity remains unknown, there is no need for an intermediary or third party to exchange.
The data and information recorded on the Bitcoin network can also be recorded as an individual’s identity. By doing so, the risk of identity fraud is eliminated; The mayor of Zug, Switzerland, also said that the blockchain test for registering citizens’ identities and providing citizenship IDs would allow people to authenticate their information safely and securely.
Supply Chain And Interception
From the most initial part to the final part; That is, the stages of harvesting and production of the product from the beginning, until the moment of reaching the customer, are recorded on the blockchain technology network, and in addition, by scanning the QR code, the customer is assured of the authenticity and quality of the product.
The use of blockchain technology in this section makes both the customer and the seller feel comfortable about the quality and health of the product.
Violation of copyright law when producing a work; A movie or music or even a photo, the producer of the work, suffers a lot of damage. Using blockchain, you can register the ownership of a work internationally or set certain conditions. For example, if you intend to use a work, pay for it with a special token.
With blockchain, assets can be converted into tokens and offered as a transferable digital currency. For example, you can make any kind of goods; Turn your car, house or even your smartphone into thousands of tokens and sell the product according to the budget of the applicants, even many people can invest in it. Given that there are currently many legal problems for this application of the Chinese block, but with the provision of infrastructure, we can hope to achieve such a goal.
saving time! Sometimes, without realizing it, the researchers re-examined a topic they had researched a few years ago and came up with the main result.
With blockchain technology in the field of health, time is staring and the focus is on newer goals, and the information obtained from each topic can be stored with different hashes from the available blocks to separate the research. Medical and research data can also be recorded with high security for sending to other physicians and researchers.
Decentralized Organizations And Institutions
With blockchain, a kind of healthy democracy can be established in small and large societies. The debate over decentralized governance has long been debated in the world’s top universities and prestigious academic circles.
According to what we have reviewed, blockchain technology can greatly affect the future and have many advances for human beings, remember; Due to the use of encryption and its registration in all network computers, the registered records can not be hacked or deleted and the blockchain is also acceptable in terms of security. What are your views on blockchain? Do you think it can further develop the future? please don’t hesitate to say your comment about this technology i appreciate it. hope you will enjoy to reading this, and also thanks to spending your time to read this article.