Introduction to blockchain technology for beginners

Nowadays, technology is scaling even more new heights of success at an incredibly fast pace. One of the latest victories in this direction is the evolution of blockchain technology. New technology has had a huge impact on the financial sector. In fact, it was originally created for the digital currency – Bitcoin. But now it has found its application in several other things as well.

It was very easy to come so far. However, no one still knows what a blockchain is.

A distribution database

Imagine an electronic spreadsheet that is copied several times across a computer network. Now, imagine the computer network is so smartly designed that it regularly updates the spreadsheets themselves. This is a comprehensive review of blockchain. Blockchain contains information as a shared database. In addition, these databases are constantly matched.

This method has its own advantages. It does not allow storage of databases in a single location. The records contain real public features and can be easily verified. Since there is no centralized version of the records, there is no way for unauthorized users to manipulate and corrupt data. The blockchain distribution database is simultaneously hosted by millions of computers, making the data easily accessible to almost everyone across the virtual web.

To clarify the concept or technology, it is best to discuss Google Docs compatibility.

Google Docs analogy for blockchain

After the advent of email, the usual way to share documents is to send a Microsoft Word Doc as a recipient or attachments to recipients. Recipients will take their sweet time to go through it before returning the revised copy. In this case, one has to wait until the return copy to see the changes made in the document. This is because the sender is locked out from editing until the edit is completed and the document is returned. Contemporary databases do not allow two owners to access the same record at the same time. This is how banks balance their clients or account holders.

In contrast to set practice, Google Docs allows both parties to access the same document at the same time. Additionally, it allows both to view a single version of the document at the same time. Like a shared document, Google Docs acts as a shared document. The distribution part is only relevant when multiple users are involved in sharing. Blockchain technology is an extension of this concept in one direction. However, it is important to note that blockchain documents are not for sharing. Rather it is simply a analogy, which will help to get a clear idea about this cutting-edge technology.

Salient blockchain properties

The blockchain stores blocks of information across the network, which are identical. By this feature:

  • Data or information cannot be controlled by any single, specific entity.
  • There can be no single failure point.
  • The data is kept in a universal network, which ensures perfect transparency in the overall process.
  • The stored data cannot be corrupted.

Blockchain developers claim

As mentioned earlier, blockchain technology has a very high application in the world of finance and banking. According to the World Bank, ২০১ 30.430 billion was transferred to the United States in 2015 alone. Thus, blockchain developers have significant demand in the market.

Blockchain removes the payment of intermediaries in such financial transactions. It was the invention of the GUI (Graphical User Interface) that helped the general public access computers in the form of desktops. Similarly, the Wallet app is the most common GUI for blockchain technology. Users use the wallet to buy their favorite items using Bitcoin or any other cryptocurrency.