Blockchain is one of the best inventions of the present time, which will undoubtedly change our world. But the main question on everyone's mind right now about this new invention is: What exactly is a blockchain?
Is blockchain technology the new name for the Internet?
Blockchain technology has created a new kind of Internet backbone that can be used but not copied (subject to permission to distribute digital information).
This technology, made primarily for the digital currency (bitcoin blockchain), is now being considered for use in many other potential locations. In this blog, I am going to explain what blockchain technology is and what its features are. Although there are several technical terms to use, I hope this blog will be easy and enjoyable for everyone.
Explanation of blockchain technology
A blockchain in the simplest sense is a record of the immutable data of a particular timestamp that is managed through clusters. And remember, it's not a sole proprietorship. These data blocks are interconnected and protected by the use of cryptographic principles (i.e. chains). The blockchain network has no central authority - much like a democratic system. Since it is a shared and unalterable laser, the information contained in it is open to the public. Therefore, everything that is being built in the blockchain is naturally extremely transparent and everyone involved is responsible for it.
What exactly is a blockchain?
There is no transaction cost in blockchain. There is of course a cost of infrastructure but no cost for the transaction. Blockchain is a simple but intelligent way to send data from A to B in a completely automated and secure way.
A party to a transaction in a blockchain starts its process by creating a data block. This block is distributed and verified within the network by thousands, possibly hundreds of millions of computers. This verified block is added inside a chain and stored on the network; Which not only creates a single or unique record but also creates a unique history in the network. To call a record a lie or a forgery means to lie the whole chain of millions of instances. Which is virtually impossible. Bitcoin uses this blockchain model for financial transactions but this model can be used for many other purposes.
What is blockchain technology?
For example, online ticketing of Bangladesh Railway can be considered. Here we buy tickets through mobile or web app. Where the payment gateway charges a certain amount of money per transaction. Blockchain can save us from the processing fee of this payment gateway of the railway here as well as transfer the whole process of ticketing inside the blockchain. There are two sides to the transaction - the railway company and the passenger. The ticket is a data block, which will be added to the ticket blockchain. Just as financial transaction records are unique to blockchain, individually verifiable and undeniable records (like Bitcoin), we can have these tickets. The most interesting thing is that in the latest ticket blockchain, there will be a record of all the transactions on any train route or on the entire train network where a ticket has been sold or when a train journey has taken place.
But the most important thing here is that this transaction is free! Blockchain can not only transfer and save money, but it can replace all systems and business models where a fee is charged for a transaction, or any other transaction between the two parties.
Wow... Good writing... Keep it up