What is Blockchain?
A blockchain is a decentralized database that is shared among all the nodes of a computer system. It stores information electronically in a digital format. They’re best known for their crucial roles in cryptocurrencies, such as Bitcoin, which maintain a secure and decentralized record. With a blockchain, you can guarantee the integrity and security of a record and generate trust without the need for an intermediary.
Key Facts about Blockchains
Blockchain technology is a type of distributed ledger that differs from traditional databases in that it stores data in blocks that are linked together using cryptography. New data is added to a new block. Once the block is full of data, it is chained to the previous block, which means the data is now chained together chronologically.
There are different kinds of information that can be stored on a blockchain, but the most common one so far has been as an accounting ledger for transactions. Blockchain technology is used in a decentralized manner so that no single person, company, or group retains control. All users collectively maintain control. Immutable blockchains are permanent, meaning that the data entered is unchangeable.
A blockchain allows data to be stored across multiple network nodes at different locations. This not only creates redundancies but also ensures the integrity of the data stored therein. If someone tries to alter a record in one node, the other nodes won’t be altered and thus would stop a bad actor from doing it. If one node makes an error in recording transactions, all other nodes will cross-reference each other to identify the node with the erroneous information. This system helps to create an exact and transparent timeline of events. This way, no one node within the network can change any information held by the network.
Is Blockchain Secure?
Blockchain technology achieves decentralized trust through several methods. First, new blocks are always stored sequentially and chronologically. Meaning, they are always added at the end of the blockchain. Once a block has been added at the end of the blockchain, it is extremely difficult to change the contents of the block without the support of a majority of the network. That’s because each blockchain contains its own hash, together with the hashes of the blocks before it, as well the previously mentioned timestamp. A hash code is created by a mathematical function that converts digital information into a string. If that information is changed in any way, the hash code also changes.
