Block Chain Technology
Hello friends! First of all thanks for choosing this article regarding the brief explanation of Block Chain Technology in the easiest form with appropriate examples.
Before moving ahead let me assure you that this is going to clear you everything about it provided you study it with patience.
So without wasting your precious time lets go ahead in a step by step format:-
What is Block Chain Technology?
Block chain is actually a technology that capable of transferring like Bitcoin or other allied services from one individual to another digitally & instantly without having any third party interface.
Block Chain Technology is a distributed database ledger that exists in thousands of computers to avoid losing and hacking of data.
Before going to the example of it let us have a quick & rough look onto the concept of Bitcoin also so that it will be easier to understand further.
A decentralized digital crypto currency that doesn’t authorized by any regulatory body.
Indian physical currency come under the control of the Reserve Bank of India but in Bitcoin case, there is no such regulatory body.
Note: – Here, crypto means something really complex and unique in nature.
The concept of Bitcoin exists only because of block chain technology. Bitcoin is invented in 2008 by an unidentified person or group of persons named as Satoshi Nakamoto.
Now let us consider the below example for explaining further the block chain technology.
An Indian businessman Rahul Kumar has to transfer money to the account of another businessman Mr. Vipin Kumar that residing in the USA because of some trade between them then they must need a third party like a bank for such a transition.
In this processing it takes time may be up to two-three days. Moreover, some transferring service charges are also applied for the same.
Therefore, these loopholes give rise to the concept of block chain then its application as Bitcoin.
But with the help of Block Chain Technology, the amount can be transferred instantly within minutes. Furthermore, the fee charged for the transition is really lower as compared to the former.
The Block Chain Technology founded in the year 1991 by Stuart Haber & W. Scott Stornetta but it became popular because of the introduction of Bitcoin in 2008 that totally based on this technology.
All users of a single block chain know that who is paying to whom and how much is paid so there is no possibility of any kind of corruption.
A single transition database (data) remains in thousands of computers (chain) belonging to that block chain so that there will be no possibility of losing the data and hacking for the same.
How block chain technology is so safer?
Now you may be thinking that why it cannot be hacked? So the answer is simple that hackers have to hack thousands of computers in one go at the same moment which is further impossible to do so.
Therefore, the safest transition can be done with the help of this block chain technology.
As a result, now the government and banking sector also researching more and trying to apply this technology precisely to avoid loss of data and to diminish corrupt activities.
Furthermore, this technology enables to give direct benefits to the needy ones without having any intermediate in between & this is really the beauty of this technology.
A poor person needs some financial charity for his survival then the person who is willing to assist him/her can send directly to the needy ones.
How does block chain technology work?
Now, you may be thinking that how it works i.e. the mechanism of block chain technology.
So let me make you understand it with a suitable and simple example:
Note: – Each transition creates a new block with associated information of the previous one but in the complex structure.
If you want to transfer money to your brother then a block is created containing this transition information now if your brother wants to transfer the same to his friend then a new block will be formed containing the previous transition details in complex form as well as details of current transition between them in the form of new block and so on. This makes a chain of blocks.
It means your transition details are also stored in another block and if further his friend going to transfer to someone else then it going to repeat the same process again.
So this way it creates thousands of databases that really impossible to hack and further, it also avoids losing of data as it is not possible that data can be erased from thousands of systems (chain).
Now, here you may be thinking that if new block formation contains the information of previous one then it can be misused but it is impossible again as a new block is also unique and complex in nature same like a URL of a website or our thumb impression that cannot be matched with others.
Therefore, there are no worries if we use block chain technology even for official works and transferring digital currencies etc.
Hence, we can say that the future belongs to the block chain technology in the space of transferring and going digital verticals.
What are the types of Block Chain?
Here are the main three types of block chains:-
- Private block chain:
Only a particular network of people can access it after getting permission from administrators.
- Public block chain:
Anyone can access it and become its holder but only after following the mechanism of getting the process as per this technology.
- Hybrid block chain:
The intermediate form of above both the cases i.e. it analyzes what should be kept private and what not and then after considering both it works accordingly.
- The block chain technology is actually a technology that becomes a medium in transferring digital currencies like Bitcoin instantly from one individual to another, anywhere & instantly without having third party interface like a bank.
- Bitcoin is a decentralized digital cryptocurrency that doesn’t authorized by any regulatory body like Reserve Bank of India.
- Bitcoin is invented in 2008 by an unidentified person or group of persons named as Satoshi Nakamoto.
- The Block Chain Technology founded in the year 1991 by Stuart Haber & W. Scott Stornetta.
- The three major types of block chains are public, private and hybrid.
- Now government and banking sectors globally trying to use this block chain technology so that to speed up their transition. Further, it cannot be hacked and copied.
Finally, I hope it has cleared you the concept of block chain technology to some extent.
Again really huge thanks for reading this article till the end.
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Have an awesome time ahead.