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Today we are going to talk about Blockchain. Many people invest in cryptocurrencies without knowing the basic concepts, and understanding this term is fundamental to understand cryptocurrencies. Without further delay, lets get to it.
A Blockchain its a specific type of database, it differs from a normal database in the way it stores information, the information here is stored in blocks that are all linked making a chain of information blocks. When new data come, it enters a fresh block, once the block is filled with data its chained onto the previous block.
So what is a Blockchain? Understanding it may seem complicated, but its concept is simple. To understand it, you need to understand a database, so what is a database? Its a collection of information stored electronically on a computer system.
So how does a database differs from a blockchain?
One major difference between a normal database and a blockchain is the way the data are structured. A blockchain collects information together in groups, also known as blocks, that hold sets of information. Blocks have certain storage capacities and when filled, are chained onto the previously filled block, forming a chain of data known as the “blockchain”. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled.
For the purpose of understanding blockchain, it is instructive to view it in the context of how it has been implemented by Bitcoin. Like a database, Bitcoin needs a collection of computers to store its blockchain. For Bitcoin, this blockchain is just a specific type of database that stores every Bitcoin transaction ever made. In Bitcoin’s case, and unlike most databases, these computers are not all under one roof, and each computer or group of computers is operated by a unique individual or group of individuals.
Imagine that a company owns a server comprised of 10,000 computers with a database holding all of its client's account information. This company has a warehouse containing all of these computers under one roof and has full control of each of these computers and all the information contained within them. Similarly, Bitcoin consists of thousands of computers, but each computer or group of computers that hold its blockchain is in a different geographic location and they are all operated by separate individuals or groups of people. These computers that makeup Bitcoin’s network are called nodes.
So it is a Blockchain really secure?
After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block unless the majority reached a consensus to do so. That’s because each block contains its own hash, along with the hash of the block before it, as well as the previously mentioned time stamp. Hash codes are created by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well.
Succeeding with such a hack would require that the hacker simultaneously control and alter 51% of the copies of the blockchain so that their new copy becomes the majority copy and thus, the agreed-upon chain. Such an attack would also require an immense amount of money and resources as they would need to redo all of the blocks because they would now have different timestamps and hash codes.
Hope this article was informative and maybe you've learned something new today, we have learn for sure, we don't know everything and as we make content we are also learning. For this blog post we took some information from Investopedia, and we'll leave the link bellow, and we also will leave a link with a youtube video for those who read the article and still have no clue what is a blockchain. Thats it hope you have liked our content and thats all for now!
Investopedia: https://investopedia.com
YouTube video By Simply Explained : https://www.youtube.com/watch?v=SSo_EIwHSd4
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