When I was just starting to study cryptocurrency and bitcoin, I had many questions that could not be answered. One of the things here is what is blockchain?
To me this word is very unfamiliar or jargon, because I'm not a developer or programmer. I read a lot of articles about blockchain, but most of the explanations on the internet that we find even today are not easy to understand. Especially people who are not techie. That's why I wrote this article in a simple way, that even a young child can read.
So what is blockchain? Before all that I just want to clarify, because there are still many misconceptions between cryptocurrencies and blockchain.
Others think that cryptocurrency and blockchain are the same. Which is wrong.
Blockchain is the technology and cryptocurrency is the technology-based application.
For example, bitcoin is a type of cryptocurrency and it lives on blockhain technology.
Bitcoin cannot exist without a blockchain. Just like the internet and facebook, facebook is not accessible without internet.
What is blockchain?
Blockchain is a type of database where all information is contained in it.
But unlike ordinary databases that are confined to one place. The blockchain is distributed and distributed to various users.
Let's give an example.
Youtube, facebook or even banks have their database located in a safe place that no one can access.
Meanwhile the bitcoin blockchain is on the servers and computers (nodes) of all bitcoin users. All transactions that occur in the bitcoin network are placed on the bitcoin blockchain. And all the servers and computers that use bitcoin (those that run full nodes) he has a copy of the blockchain on their hard disks.
We have just done bitcoin for example, but take note there are different types of blockchain and they have different features like Ethereum, XRP etc.
Blockchain security
The blockchain is known for its security. Once the data has been placed in the blockchain you can no longer customize it.
The blockchain contains a chain of blocks, and all of these blocks contain data that can be transaction records, personal data or documents.
Before installing the new block in the chain, you are already checking the network of nodes (these are the computers used by miners) to make sure it is valid. After everything is validated, this transaction will be placed on the blockchain. These blocks that are on the blockchain are interconnected. This means that you cannot simply edit the content of one block because it can be detected by other blocks attached to it. To do this, you need to edit all the network blocks. And each block has a consensus.
Currently there are 10,000 nodes running on the bitcoin network.
To better understand why it is impossible to edit a blockchain transaction let's give an analogy.
Suppose you were a famous writer and you published a book. Your book is sold worldwide and has over 200 Million copies sold out. Imagine 200 million people read your book. And there is someone who doesn't like you and wants to change the story written in your book. He wants to change the version you wrote and convince everyone that this is the original version.
Who do you think will believe him? Remember 200 million people have read the book and only one person is against it. Who is convinced? Of course who is the majority. And if you want to change the version of the book you released you need to unify each person holding it and change the book version.
So if you look at it it's impossible to do it, because the book is already spreading all over the world.
Now those things are similar to the bitcoin blockchain concept. Subscribers to the bitcoin network have a copy of the blockchain records stored on their computers. To hack a transaction on the blockchain network, hackers need to integrate every computer that operates on the bitcoin network. Which is not easy, a quantum computer has not yet been invented to operate with huge amounts of computational power.
Experts say that this type of computer can be invented 10 years to 20 years from now. Maybe by that time blockchain technology was evolving.
Just as in the early days of Google it was often hacked, hackers often slowed down its servers. But now you notice how often you use and search on the internet with Google, how many times have you noticed that you can't access it? Not there?
This is because Google's technology is improving, while it can adapt to any threats. The same is true of blockchain technology, as it lasts longer and more efficiently and efficiently.
Conclusion
As enthusiasts and investors, it is only right that we somehow understand the world in which we live. In the cryptocurrency world. Often we enter it to invest and make money in trading, investing etc. But we have no idea what it is. We forget why technology is made and what it can bring us.