BLOCKCHAIN (technology behind Bitcoin) used for record transactions across all the computers, and the involved record can’t be altered retroactively without any alteration of all blocks because it is a decentralized, distributed and public digital ledger.
In the simplest way, it is a time-stamped chain of final record of data that is managed by a bunch of computers not owned by any single unit. Each of these blocks of the block is protected and bound to each other using cryptographic chain.
USE OF BLOCKCHAIN
For the use of blockchain technology, you have to know about Bitcoin, Litecoin and Ethereum. Blockchain is the only technology that distributed digital information instead of copied it.
• Bitcoin is a cryptocurrency.
Let’s have a line on cryptocurrency it is only the digital assets that are designed to work as a medium of exchange.
• Litecoin is decentralized money, complimentary from censorship and open to all.
The fact you have to know about “Litecoin is a potent, biased and cheap tool which anyone, anywhere can use without authorization to transact with anyone in the world and contribute in an authentically global economy.”
• Ethereum is an operating system featuring smart contract functionality and open-source, public, blockchain-based distributed computing platform.
What makes it exceptional in distracting capabilities?
Its network has no central ability — it is the very definition of a democratized system. Since it is a shared and fixed ledger, the information in it is open for anyone and everyone to see.
The reason behind the admiration of blockchain is that:
Let’s understand about blockchain
Visualize you have an excel spreadsheet and each row having few columns and that columns hold the transaction.
Now, if each row has a column that contains a unique fingerprint of all the data in that row plus the hash of all the data in the previous row, then these rows would be chained together forming.
A user may be able to sprint a software that monitors these hashes. Together, it would hash each line and see if all the hashes are valid. If any hash is invalid, the user will understand that a subsequent data or moment somebody forged a line.
Now how we related hash chain with blockchain?
Imagine you have multiple spreadsheets and these spreadsheets having multiple transactions we call this group transaction block. You would have a spreadsheet chain if you generate a single hash of all the information in one spreadsheet then a hash of all the information in another spreadsheet and then a hash of the hashes of each spreadsheet.
Remember, these spreadsheets enclose a block of transactions so this is efficiently a simple blockchain
Applications of Blockchain
I. The sharing economy
III. Smart contracts
V. Supply chain auditing
VI. File storage
VII. Prediction markets
VIII. Safety of intellectual property
IX. Internet of Things (IoT)
X. Neighbourhood Microgrids
XI. Identity management
XII. AML and KYC
XIII. Data management
XIV. Land title registration
XV. Stock trading