Blockchain Technology Concept
Blockchain technology has become today modern and has the flexibility to grow to become the cornerstone of record-keeping and data-keeping systems everywhere the globe, especially with the spread of digital currencies, because it was launched only 10 years ago by an unknown person / those that were behind the creation of the primary and most famous A digital currency, BITCOIN, or because it stands for BTC, during this text we are going to study the concept of block chain technology, how it works, and why it’s received such a lot attention and fame from the instant it had been invented.
A Brief History of The Start and Emergence of Blockchain Technology
The beginning of the thought of the blockchain or blockchain was in 1991 AD when Stuart Haber and Scott Stornetta described the concept of building a sequence of knowledge blocks registered and secured in cryptography for the primary time, after which programmer and computer user Nick Szabo tried to use it in a trial to make a non-cryptocurrency A financial organisation that he called bit gold or bit gold, which was around 1998 AD.
The real breakthrough for blockchain technology was in 2008 when the developer/developers working under the pseudonym Satoshi Nakamoto issued a written report to ascertain the blockchain model, and a year later it’s actually implemented as a comprehensive record of transactions using the digital currency Bitcoin.
In 2014 there was a serious technological breakthrough in Blockchain technology as Blockchain was separated from currency and its potential for financial transactions generally between various third parties was explored. And Blockchain 2.0 was created, the second version of the Blockchain, which entered into applications aside from the thought of digital currencies like what was provided by the Ethereum blockchain system in computer programs within the sort of blocks, which represent financial instruments like bonds. Later they became called smart contracts.
Blockchain is an open source technology that’s programmable and uncontrollable and is actually a digital ledger of transactions that are replicated and distributed across the whole network of the system on encrypted blocks of records, each of them may be a block that’s linked to every other and secured with a special cryptography Each block contains a hash, which could be a mathematical algorithm that logs atiny low a part of the information of the transactions included within the log as a full, and is encrypted with a partial cipher from the overall cipher within which the block chain that creates up the transaction log and therefore the total blocks are encrypted, and defines the decentralized database it manages Many participants – as happens within the blockchain – with Distributed Ledger Technology (DLT).
And we can say that the blockchain technology works almost on the identical principle as torrent files, but in an exceedingly more complex way because it works complex mathematical algorithms and requires powerful and complicated computer processors, that is, it’s an integrated network, and by storing data across that network, Blockchain technology prevents any risks associated with the centralization of saving data.
We Follow The Subsequent Example:-
Imagine we’ve 4 people Ahmed, Muhammad, Islam and Omar
Each of them includes a number of cryptocurrencies and Ahmed wanted to shop for a commodity from Muhammad for 0.12 bitcoin, which suggests that Ahmed will enter his electronic bitcoin wallet, and send Muhammad 0.12 bitcoin in exchange for purchasing that commodity – this can be called a transaction or transaction
This transaction must be recorded within the transaction record of the four people, that the storage unit divides the record – the transfer statement from Ahmed to Muhammad – into four encrypted partial copies, and sends it to the records of the four people “Ahmed, Muhammad, Islam and Omar” in order that each of them is in a position On reading the record, and knowing that an amount of 0.12 Bitcoin was transferred from one person to a different without the knowledge of the transferor or recipient – that’s, Islam and Omar know that there’s a transfer process, but they are doing not know that the source is Ahmed nor the recipient is Muhammad.
This means that every one amongst them incorporates a small share of the encrypted data between them, and that they can see all the transactions that are being recorded at the identical time, without decoding them or knowing the source of every transfer or the recipient, and every one this is often done through the complex network operated by Bitcoin software Himself.
Blockchain applications, like other traditional software applications, are implemented through a decentralized structure to serve an encrypted economic or national economy environment whose primary objectives are to extend security, enhance trust and crypto assets by designing an incentive or reward system in an exceedingly new network that has miners as a return for work On the online.
Blockchain technology may demonstrate the strength of its applications within the banking and financial field. When financial institutions replace traditional paperwork and processes with their blockchain infrastructure system, the advantages include removing human friction and delays, and increasing overall operational efficiencies, including global business transactions, financing, review and settlement. Banking, lending, and other transactions.
In addition, with blockchain as databases, blockchain in healthcare and insurance can help improve the protection of patient data while facilitating the sharing of records between providers, recipients, and researchers. As far because the security, transparency and simple tracking the info within the network, and its stability without trying to switch or change it, the trust between the service provider and therefore the recipient increases.