WHAT IS BLOCKCHAIN??? FOR THOSE WHO DOES NOT KNOW HOW IT WORKS..

2 months ago

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Blockchains are really popular nowadays.But what is a blockchain? How do they work, what problems do they solve
and how can they be used?

A BLOCKCHAIN is a chain of blocks that contains information.
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This Idea was originally described in 1991 by a group of researchers and was originally intended to timestamp digital documents so that it’s not possible to backdate them or to tamper with them.

Satoshi Nakamoto in 2009 used this idea and created the first digital cryptocurrency called Bitcoin.

WHAT IS BLOCKCHAIN??
They are a kind of a distributed ledger that is open to everyone.
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The most inportant thing about them is that once some
data has been recorded inside a blockchain, it becomes very difficult to change it.

HOW DOES THIS THING WORK??

Lets see a block first:-
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Each block has data, hash and the hash of the previous block.
DATA
The data that is stored inside a block depends on the type of blockchain. The Bitcoin blockchain for example stores the details about a transaction in here, such as the sender, receiver and amount of coins.
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HASH
A block also has a hash. Its just similar to our fingerprints. It identifies a block and all of its contents
and it's always unique, just as a fingerprint. Once a block is created, it’s hash is being calculated. Changing something inside the block will cause the hash to change. So in other words: hashes are very useful when you want to detect changes to blocks. If the fingerprint of a block changes, it no longer is the same block.

HASH OF THE PREVIOUS BLOCK
The third element inside each block is the hash of the previous block. This effectively creates a chain of blocks
and it’s this technique that makes a blockchain so secure.
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Now if somebody tamper any of the block. This causes the hash of the block to change
as well. For example:-
Now if somebody tamper any of the block. This causes the hash of the block to change
as well. For example:-
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In turn that will make block 3 and all following blocks invalid because they no longer store a valid hash of the previous block.
So changing a single block will make all following blocks invalid. But using hashes is not enough to prevent
tampering. Computers these days are very fast and can calculate hundreds of thousands of hashes per second.
You could effectively tamper with a block and recalculate all the hashes of other blocks to make your blockchain valid again.
So to mitigate this, blockchains have something called proof-of-work. It's a mechanism that slows down the creation
of new blocks.
In Bitcoins case: it takes about 10 minutes to calculate the required proof-of-work and add a new block to the chain.
This mechanism makes it very hard to tamper with the blocks, because if you tamper with 1 block, you'll need to recalculate the proof-of-work for all the following blocks. So the security of a blockchain comes from its creative use of hashing and the proof-of-work mechanism.

There is a lot more to learn about Blockchain but I think this fine for the beginners to start with.

Content from an earlier blog written by me.
@worthtrick

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i feel be better to know more info about the important to digital coin basic process. i wish i could save all of these info and keep warm more all relating point in which would be more improving about it..