Bitcoin is very popular these days and it is reported almost daily. Fatwas are being issued on this and legal debates are going on in this regard, but it is very sad to see that the basic technology that creates bitcoin and many other cryptocurrencies like "block chain" is not being discussed anywhere. On the contrary, the truth is that if you take block chain seriously, this technology can be a guarantee of the best career for you in the future. I have written this blog, especially for such people. Please read it and let me know what you think.
A man travels from one register (account) to another, from birth to death and perhaps even after death, as a record. His caste and all the needs and problems related to him are due to some account. There is nothing wrong with believing that man is a unit in a chain of countless accounts. Innumerable and unlimited accounts are linked together in a chain. One of the facts listed in them is called a single human being and he also needs to register these accounts to prove his existence.
Believe me, there is no religious or philosophical debate, this is the way we live and this is exactly what the blockchain is all about.
When we are born, a birth certificate is issued. Form “B” from the hospital or District Nazim Councilor's office and then a confirmed birth certificate or family certificate from NADRA as final proof. This certificate is proof that you are. Without it, your existence is not legally proven.
Once you have been vaccinated, another registrar is entered. Getting home, having an ID card or passport, driving license, bank account, firearms license, marriage, childbirth, school enrollment, university degree, and even death, you still get some kind of certificate that somehow Evidence of enrollment in the account. I liken this system to an invisible blockchain; and the book of deeds? That too is a register in which everything is being written.
The census of valuables, natural resources, national resources, and population has always required accurate enrollment. After the Second World War, the Bretton Woods Conference was held in 1944, which resulted in the establishment of institutions such as the International Monetary Fund (IMF), the World Bank, and later the United Nations and the World Trade Organization (WTO). Can be controlled, run under a central system, and all the countries, big and small, and all the people living in them, whether poor or powerful, all come under this central system and flaunt as much freedom and personal status as they can. Eventually, all their energies and resources will flow through this central system to a handful of people or institutions who seek to enslave free people in the name of policy-making.
If you look around and consider, you will see your life connected to some central accounts. Bank, house papers (patwari), hospital, identity card, marriage office, etc.
Let's assume that we are always tied to some central account or system, so what is the end of it? Why do we need an alternative system? Why should we look for a new system when everything is going well?
There are three major drawbacks to central system trust (or blind trust):
This system or its operators can, whenever they want, in the name of competition or censorship or in the wider interest of the country, remove whomever they want from the system; Put Pakistan on a terrorism watch list and impose restrictions on the movement of money and goods.
Eliminate or make it impossible for Iran, Venezuela, Palestine, North Korea, and any other country, institution, or individual that is not surrendering to you, under any other pretext. Pay-Pal is not in Pakistan. More than a billion people in the world do not have their personal identity documents, ie government assistance for immigration, from employment medical assistance, they cannot prove their existence.
People trust you, but you keep the market of injustice, looting, and corruption hot. People should keep their life savings in an institution and that institution will destroy it as they wish, considering it a trust. People should pay taxes to the country and the rulers should spend it on their own luxuries instead of spending it on the welfare of the people.
3. Loss of Records
What if someone hacks the central bank or all accounts? What if a bank employee accidentally enters your account incorrectly, or the record is lost in another natural or man-made accident? As files are usually set on fire in Malik Aziz, what is the guarantee of the right of the rightful owner in this case?
Inequitable distribution of resources, misuse of power, and arbitrariness of the buffalo with its stick are the reasons for the gradual climate of mistrust.
Miss uses and Loss
A closer look at the last century reveals the greatest decline in human confidence. People's trust has been shaken, whether it is an institution, a government, a court, a relationship, a religion, a leader, or any other guarantor. Debate As a whole, human beings did not trust anyone. This is an issue that has been under discussion for the last fifty years, how can we finally build trust between two or more parties; And that too without a central character?
Can we create a register (account) that can read/write so that all entries come into being transparent? Will we be able to take money out of the reach of any government, institution, or person? How will any organization or individual take responsibility for updating such registers or accounts? How is it possible to prevent and catch the fraud and dishonesty of bad people in such an open account? Will it be allowed to change this account?
Researchers in mathematics, computer science, economics, and psychology have spent decades trying to find answers to these and similar questions. Like raindrops, the fragments continued to form into new parts of the new system until Satoshi Nakamoto, a pseudonym in 2008, offered the world a viable solution to what we call "blockchain".
What is blockchain and how does it work? It's a little difficult to understand because you have to understand all the details involved.
First, we define this system, then we try to understand it gradually with examples.
“Blockchain is an open, distributed register that anyone can view and anyone can enter (with certain conditions) and which is protected by a complex mathematical process. Goes This is a basic concept.
Man has been using accounts for centuries to keep records. Sometimes in the form of clay tablets, sometimes in the form of a paper office, nowadays they are stored in computers in the form of a collection of bytes.
Blockchain (split account) is a distributor ledger that keeps a chronological complete account of the transactions that take place. Everyone on the network has a complete copy. When there is a change or a transaction, everyone updates their accounts. If someone talks about recording a fake transaction, the rest of the people will reject it because they do not have a copy of the transaction.
You may have seen many guests at the time of the wedding, in fact, it is all a conscious blockchain that is witness to this wedding. If a man claims to be married tomorrow, everyone will oppose him saying that this woman is already married.
You look at the memorization of the Holy Qur'an, every memorizer of the Qur'an is a node. Everyone has the same Public Ledger, a copy of the Qur'an that everyone has stored in their minds. Now, if tomorrow some unintentional person (God forbid) invents a new verse, the blockchain system of security will reject it and throw it out of the system. This is exactly how the blockchain works.
Let's consider another example:
Abdullah called his friend Jamshed and said, "I need money. Send me some money." Jamshed immediately opened his online account and sent Rs 10,000 to Abdullah's account. Abdullah got the money in his account in a few minutes.
Now, what happened behind this simple transaction?
No cash or cash flowed.
When Jamshed went to his online account and requested to send Rs 10,000, the computer system checked the presence of money in his account. If there was less than ten thousand in his account, this transaction would not have taken place. As the amount in his account was more, the amount of ten thousand rupees from his account decreased and the same amount (ten thousand rupees) increased in Abdullah's account. The existence of money in this whole process is no more than "account registration".
The only problem is that two people have to rely on a third party to transfer money to each other and usually this third party charge money for these services.
This typical C-transaction between cities and countries charges up to 10% and has an interval of 3 to 7 days. In other words, the money will be transferred from Jamshed's account immediately, but it will take several days to reach Abdullah.
The use of a third party has all the limitations that we have discussed above in the problems of the central system and it also takes more fees and time. Permission from the government and institutions is also required and deductions are also made in the case of foreign exchange exchanges. There is a possibility of theft, human error, and convenience.
We have put all the eggs in one basket and that of someone else, which we commonly call "bank".
So can't we just create a register among ourselves and keep registering it? Absolutely! It can be done. But here comes the problem of double-spending, which Satoshi Nakamoto solved well. This solution is called "blockchain".
We create a public ledger and will keep a record of all transactions from the beginning to the end of the world. If Abdullah continues to give Rs 5,000 to anyone, then everyone knows that he has Rs 10,000 and he can give Rs 5,000, and this Rs 10,000 came to him from Jamshed. Now, if there are thousands, millions of people on this system, they will all continue to transact and everyone will continue to be registered in the public register of blockchain.
When the page is full due to writing many transactions, all the people (Nodes) will "seal" it with the help of the hash function and make a block, and work will start on the next block.
This seal means that whatever is written on the page/block is fine and no change is possible for the rest of the world. This is what we call the Immutability of the Blockchain.
The hash function is a complex mathematical function in simple language in which you can write whatever you want, it will give you different answers of the same size. You call it a machine. Now if we put 4 in it, the answer will be dcbea
Computer system technology
4 Hash Function dcbea
Let's put 26 and see
26 Hash Function 94c8e
That is, the answer may include letters in addition to the alphabet. A hash function is called a one-way (one-way) function. Then, whenever someone puts in the input, the answer will be the same. For example, the answer to 4 will always be dcbea, but there is no way you can get from the answer to the actual input.
Yes! It's easy to test. If you know both 4 and dcbea, you can check in a second with the help of this function, whether this is the output of this input or not.
Now if I tell you that I need an input that allows the output to be 3 zeros at the beginning:
Hash Function 000?
So how do you know that?
The only way to find out is "Brute force" that you keep giving one number after another as input and see what the output is, sometimes the output of your choice. Will come
237 HASH 2bc7
C75ae HASH 9082
11802 HASH 09aef
72533 HASH 000 CA
Oops! Found. Now, this is your desired number 72533. Anyone can verify that 72533 is 3 zeros at the beginning of the output if given in the input.
Now we have to seal the page (block) of our transactions. We collect all the transactions on the page (or else find the number). Now the question we ask is which number should I add to the page set that has 3 zeros at the beginning of the output.
For example, if the total of the page is 20893, then make a question:
000 HASH 20893
We then try one by one number, after a while, we get the number 21191.
21191 + 20893 = 42084
42084 HASH 00078