What is Blockchain

What is Blockchain ; after  reading newspaper or watching news channels you must be thinking. A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks- the most recent transactions are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node makes a copy of the blockchain, which is downloaded automatically.

With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Originally developed as the accounting method for the virtual currency Bitcoin, blockchains – which use what’s known as distributed ledger technology (DLT) are appearing in a variety of commercial applications today. Currently, the technology is primarily used to verify transactions, within digital currencies though it is possible to digitize, code and insert practically any document into the blockchain.

It could be quite useful for everyone to have access to a decentralized source of record saying who owns a given parcel of land. Considering that coups and wars often redistribute land unfairly and/or incorrectly, this could not only prove useful, but also have humanitarian implications. Once a land distribution is agreed upon, it can be recorded in a distributed ledger and no longer be subject to ongoing debate.

A block is the ‘current’ part of a blockchain, which records some or all of the recent transactions. Once completed, a block goes into the blockchain as a permanent database. Each time a block gets completed, a new one is generated. There is a countless number of such blocks in the blockchain, connected to each other (like links in a chain) in proper linear, chronological order. Every block contains a hash of the previous block. The blockchain has complete information about different user addresses and their balances right from the initial block to the most recently completed block.

The blockchain is perhaps the main technological innovation of Bitcoin. Bitcoin isn’t regulated by a central authority. Instead, its users dictate and validate transactions when one person pays another for goods or services, eliminating the need for a third party to process or store payments.

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.

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