“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Don & Alex Tapscott, authors Blockchain Revolution (2016)
Is blockchain technology the new internet?
The blockchain is an undoubtedly ingenious invention. Blockchain is the brainchild of Satoshi Nakamoto, nobody still knows whether it is one person or group of people known by this pseudonym. But since then, it has developed into something greater, and the main question everybody is asking is: What is Blockchain?
Blockchain allows digital information to be distributed but not copied, that’s why it’s the backbone of a new type of internet. Originally it was devised for the digital currency like Bitcoin, but the tech community is now finding other potential uses for this technology.
BTC has been called “digital gold,”, today the total value of the currency is about $112 billion. And blockchains can make other types of digital value. For example, like the internet or your smartphone, you don’t need to know how the blockchain works to use it. But having some basic knowledge about Blockchain shows why it’s considered revolutionary.
So how does Blockchain really work?
For example, a spreadsheet that is duplicated thousands of times across a network of computers. This network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.
Information on a blockchain exists like a shared database. It is a way of using the network that has obvious benefits because the blockchain database isn’t stored in any single location, it’s not centralized by anybody. The records it keeps are public and easily verifiable. No centralized version exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet. That’s why it’s called decentralized.
A Blockchain transaction is a unit of the task that is stored in public records. These records also known as blocks. These blocks are executed, implemented, and stored in blockchain only after the validation by all persons involved in the blockchain network. Each previous transaction can be a review at any time but cannot update.