It is the registry of all the transactions made in any of the cryptocurrencies such as Bitcoin that are maintained across several computers using peer to peer networks.
A peer to peer network is a system in which individual computers act as servers eliminating the need for a central server.
The concept of blockchain was created by a man named Satoshi Nakamoto in the year of 2008.
As we all know that blockchain is a chain of blocks, the initial works on these were described in the year 1991 by Scott Stornetta and Stuart Haber. The thought was to implement a system where the timestamps could not be tampered with.
What is Blockchain Technology?
As the name indicates, it is made of two words "Block" and "chain". These two words were used separately by Satoshi Nakamoto, but these are being used as a single term since 2016.
Let's be with Satoshi and learn about the two words separately.
A block here is similar to a public ledger. It stores an average of 500 transactions with an average block size being 1MB.
All the transactions are encoded using various hashing algorithms into a Merkle tree. A part of the transactions is stored in another block to interlink the blocks using the same hashing algorithms.
The chain is formed by interlinking the blocks using some hash value.
- Higher rate of transparency
- Highly secure
- Greater efficiency and speed
- Costs have been reduced
- Decentralized server
Disadvantages of Blockchain
- This technology is considered to be high for people with less technical knowledge
- As it is also associated with data, there might be a risk of getting hacked. This is more of a risk associated than the disadvantage
Can Blockchain be hacked?
Well, as of now, it is not possible. This is because all the transaction blocks are interlinked and are public which reduces the risks os getting hacked. To hack into a single block, we need to change the entire chain of blocks associated with it which is not possible as the information is stored in the decentralized servers with the use of peer to peer networks.
Stats linked to the usage of Blockchain Technology
As of June 2018, the number of users was 25,764,015. Whereas in 2015, it was around 3 million. In 2017, it had increased to 13 million.
We also observed that many countries are exploring cryptocurrencies for their official use.
Well, this indicates the future of this technology.
BITCOIN AND BLOCKCHAIN TECHNOLOGY
The difference between the terms Bitcoin and Blockchain is pretty simple. Blockchain is a ledger used to store all digital transactions. Bitcoin is a type of cryptocurrency that reduces transaction charges and transaction time. Bitcoin transactions are stored using Blockchain technology.