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What is blockchain and bitcoin: basic of blockchain

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Avatar for Itrshoron
Written by   32
2 years ago

I remembered a tweet from Jameson Loop later.

On Twitter, he showed that the value of bitcoin transactions exceeded ১ 1 billion in just one public holiday in the United States, and that the equivalent of িয়ন 6 billion in bitcoin transactions took place on the same day. Now you understand how much the companies lose in business if the bank is closed one day. Banks will no longer be open every day to cover these losses, because in a world where the emphasis is now on working 3 days a week, bankers will no longer work 7 days a week. And if there are no bankers, the bank will not continue like this, all the big transactions will be stuck for the permission of the bankers. So a big solution to this big problem is blockchain.

If you are not a forest dweller or a monk, then you must have heard of blockchain, decentralization or bitcoin. These names are currently hot topics on the Internet. What did the brother say? What are these hot topics to have meme? Either Ray brother, everything happens when you get addicted to coins. I have been familiar with Bitcoin since 2013, now I wonder why I didn't pay for Bitcoin then. I got acquainted with the blockchain system in 2016 from my Iranian housemate. From then on, I started dealing with these things.

Well, then what is this blockchain? Speaking later. Let's see why this blockchain? Why are people adopting this system so fast?

One day I went to a government bank (I didn't say the name on purpose). I will send 1 lakh rupees to one's account. Problems I faced while transferring money -

1. I had to give a photocopy of my national identity card / passport

2. Why send money? What is that person to me? These have to be answered

3. The money was transferred after my check was passed through 2 bankers

I think my privacy has been violated in issues 1 and 2 above. At number 3, the banker checked if I have Rs 1 lakh in my account, if there is any, I have transferred the money to the account of the person to whom I will send the money.

Excluding the problems behind the scenes, what is this? I and the person to whom I sent the money, both of them don't know a thing, I trust the bank manager with my money. There was no real movement of this money, what the manager did was enter the money transaction in a bank register. A register whose authenticity of data is beyond the power of me or anyone else to verify. What if the manager's computer / server / register is destroyed for any reason? What if the manager intentionally or unintentionally wrote 10 lakh instead of 1 lakh? There will be no way to verify the truth.

And that's the biggest problem with our current system.

We have been relying on third parties or companies for ages. Where is the problem here? The problem is, if one person or company gets corrupted, the whole system gets corrupted. The real proof of which is seen in the banking sector of our country.

Blockchain to get out of this problem. A complete decentralized system, meaning that no individual or company controls the system, each user of the system controls the blockchain, leaving the system without a chance to be corrupted.

So how does blockchain work?

To answer this question we need to delve deeper. You don't have to go as deep as the Pacific Ocean. The size of the current bitcoin blockchain is only 163 GB.

Let's look at an alternative to keeping a bank register, which is completely decentralized. However, it will not be with 1-2 people, at least 3 people who will be able to depend on each other. We got 6 people in this case. These 6 people will depend on each other to maintain a register of their transactions. Everyone's account details will be with everyone. The funny thing is, no one will know anyone's identity.

Let's start with a notebook, which is available in the market for 40-50 rupees to write Segula I'm talking about. The top 6 people will have a notebook. Only 6 transactions will be written on each page. Once the process starts, everyone will start writing on this blank page.

Now suppose, # 5 # 1 will send 20 rupees. To do this transaction, # 5 will tell everyone that he will send Rs. Everyone will then check the account balance of # 5, if there is enough money then everyone will write this transaction on a blank page of their notebook and the transaction will be completed.

At some point everyone in this group will need to send money to each other and every time before sending money tell everyone that he is sending so much money to such and such. Thus, when 6 transactions are completed, they will no longer have space to write on that page. Then they will need a new page, but before that they have to seal the page so that no one else can modify the transaction history of that page. Then everyone on the network will agree to seal the page with a unique number. Once sealed, no one will ever be able to change that page again, because everyone believes in this seal. So everyone believes the data on this page.

This sealing is called mining in the language of blockchain

Now the question is how to do this seal?

A machine is needed to seal this. How is the machine? Suppose there is a box covered on four sides, you put a brick on the left side of it, it will come out of the right side as wood. Nah, the thing is unreal. But this is how the sealing machine works. Let me explain,

Suppose, we gave the number 10 input from the left side of this machine, a sound like 4a44d came out from the right side. Now no one knows how this machine made 10K 4a44d. 4a44d, with this word alone no one can ever say which word is coming from the left because of exactly which number. But every time the number 10 input is given, the machine will give 4a44d output. This machine is called hashing function.

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Written by   32
2 years ago
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Comments

Thanks.

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2 years ago

I love bitcoin

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2 years ago

Good

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2 years ago

❤☺

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2 years ago

Nice

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2 years ago

☺❤

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2 years ago