What Makes Blockchain So Revolutionary-Complete Guide on Blockchain. Blockchain a brainchild of Satoshi Nakamoto, an anonymous person believed to be the inventor of Bitcoin.
It is a wonderful achievement to outperform well established and renowned traditional currencies and that wonder only happened because of the most powerful feature of Blockchain technology.
Its value against the powerful US Dollar has witnessed an increase of more than 1200%, beyond our beliefs. We could only find logic behind the extraordinary growth of its value by knowing “what is blockchain technology” .
What Makes Blockchain So Revolutionary-Complete Guide on Blockchain
Blockchain and Bitcoin
This technology has made Bitcoin a trusted currency where no records can be copied or deleted. It is decentralized currency which means that there is no regulatory body (or any third party) controlling the transactions and there is no outside factor potentially influence or manipulate its value.
Because of the absence of regulatory control, the transactions are executed at a much faster rate from any part of the globe and there are no intermediary charges to be paid to any third party.
All of these features were highly demanded by traders and investors to do a trading which is safe from manipulation.
It is because of all the above mentioned features that Bitcoin stands distinguished among all other currencies, fiat or digital. The technology behind all of these features is Blockchain.
In what ways it is revolutionary?
Blockchain was first introduced as a digital ledger or database to store all the financial transactions taking place in the Bitcoin trade.
Its literal meanings explains its function, each record is stored in a block and sent to blockchain; there are uncountable blocks chained with each other to form an efficient digital ledger.
A new block is created after every 10 minutes and sent to the blockchain where it is connected with the last block in a chronological order.
The mechanism of this revolutionary technology is simple to understand for the traders and feasible for other fields to implement it in their business models. Now a days businesses dealing in IoT, Charity, pharmaceuticals, Data management and several others are also implementing it to make their systems more efficient. This makes it more diverse, dynamic and compatible for all business models.
The good thing is that you don’t need to know blockchain methodology or programming to use it. Just as you don’t need to know how your car works but you can still drive it.
But we need to know a little about this technology to understand its efficiency and to trade with more trust on its secure and transparent nature.
What distinguishes Blockchain from other Databases?
We’ll keep everything simple, so that the education of blockchain for dummies and beginners become easier to understand.
The problem with the current databases is that only one person can have access to any record at one time. This scenario will help you understand the difference better; you share your MSword file with anyone to make amendments, you cannot access the same file while the other party is editing it. You have to wait for him to complete his work on the file and only then you can have the control to make changes in the file or whatever you want to do.
While in the blockchain, a copy of each transaction is sent to each node (computer) connected to the system. So unlike other databases, more than one person can have access to a single record at anytime.
If we have thousands of records to work on, our current databases keep all the workers blind about the status of files and they cannot synchronize with each other. All people working on the system are dependent on the other to complete his work and then give you the access. No one can keep track of the files and thus creating a huge mess.
Blockchain Wallets & Transactions
Here we will elaborate the functional part of blockchain with respect to bictoin trading, blockchain wallets & transactions. Let’s suppose you want to send some amount of digital currency to another person. You will simply login to your Bitcoin Software and enter your Private and Public keys and the system will first validate your log by verifying your private and public keys.
After the validation, there is a second layer of check to verify if you have not used the bitcoins previously by going through your log details.
Once both of these actions are validated, your money will be transferred to the recipient’s account.
Each transaction is validated by several independent nodes (computers) who work for their rewards in the shape of earning Bitcoins.
The transactions on the Blockchain are irreversible, each transaction record becomes a block and then chained to its successor block in the system. Blocks are generated as frequently as after every 10 minutes and are connected to the system in a chronological order.
Hackers can’t invade to your block and access your information because they have to go through all the previous blocks to reach yours.
So it is impossible to change your transaction because it will require all the following blocks to be checked first to reach your information.
For more information on Bitcoin Wallets, private and public keys please read our other blog “Cryptocurrency Wallets-Ninja Tips on Choosing the Safest Wallet for Your Digital Currency”
How is blockchain more secure
By now we all know that each transaction is stored in a separate block which is then connected to the next block in the system followed by more blocks that are created. There is one new block added to the system after every ten minutes. These are all placed in a sequence which makes our data immutable and the security of blockchain more trusted.
Hackers can’t invade to your block and access your information because they have to go through all the previous blocks to reach yours. Your private key is another safety feature which works as your digital signature in the network. If anyone alters your record, your key will become invalid and everyone in the network will be notified about a malicious activity. The prompt response will alert the system to prevent you from damage.
Massive amount of computing power is required to validate or access a single record, it is decentralized and therefore no single computer can change your record.