The least that you need to know about Blockchain to know it Better
Each and every technology has been a threat and an opportunity at the time took birth. Only a few people were wise enough to beat the threat to grasp that opportunity. Others who ignored that opportunity ended up opting that technology very late when it became outdated like other technologies. So is the case with Blockchain these days, it’s a young technology to smash almost all the ways in which any kind of data was stored and shared.
What exactly is Blockchain?
According to Wikipedia,
A Blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
So till now you might have only understood that Blockchain is a bunch of seriously technical shit. Let’s decode these hyper-technical keywords.
Cryptography aka Cryptology is the practice and study of techniques for securing the communication from the third parties called adversaries. More generally, it is all about constructing and analyzing protocols that prevent third parties or anyone from the public in general from accessing private information. Remember end-to-end encryption in WhatsApp in our previous blog, go and check it out to understand E2E encryption in a better way. It works on the same thing.
So this technique makes the Blockchain super safe and almost unhackable. It gives Blockchain an edge over other ways of data storing and data sharing.
Hash of the Previous Block, Timestamp and Transaction Data are all the parts of a Block in a chain of Blockchain. Let’s discuss each of them in brief.
HASH OF A BLOCK
Hashes are used to identify a block and all of its content, they are always unique for a block until the data stored in it is not tampered. Once a block is developed its hash is being calculated, changing anything inside the block will cause the hash to change. That is why hashes are very useful to make and detect changes in a block.
A block holds the hash of the previous block in the same chain so that no new block enters in the chain until all the blocks are informed about it. This makes Blockchain more safe and reliable for sharing confidential data.
Timestamps show that the blocks in a Blockchain are connected in a chronological order. It marks the time for each transaction in the Blockchain. Timestamp proves when and what has happened in the Blockchain and it is tamper proof. It is given to a block in a Blockchain to associate transaction happened through that block.
The name says it all. Transaction data is all the information about the transaction that has happened with a particular block. For an instance in case of Bitcoin information who transferred the block, who received the block and other vital information is stored.
So this was an overview of the structure of Blockchain.
In the next blog we will discuss 5 reasons you should start learning Blockchain.