A Short Description About Blockchain Technology

Hi everyone, today I am back to this platform to share with you something related information about blockchain technology.

Blockchain, it is a word that is widely used in the crypto world. So, what is blockchain technology?

Let's find out! I read so many resources about blockchain. I searched using google about blockchain, and in my simple description, I can say that blockchain is a form of distributed ledger technology. A distributed ledger is a database that is shared by general agreement and synchronized across multiple sites, institutions or locations, accessible to multiple people.

It allows transactions to have 'public witnesses'. The data stored on the blockchain is organized into blocks, which are linked together using Cryptographic Hashes. This creates a block chain because the blocks are ordered specifically, the data stored in them cannot be changed. It doesn't matter what happens!

It is worth mentioning that blockchain technology is not the same as cryptocurrency. Cryptocurrency is a digital asset or digital form of money. Cryptocurrencies operate on blockchain and other forms of distributed ledger technology. For example, the cryptocurrency Bitcoin operates on the Bitcoin blockchain network.

Another well-known blockchain, Ethereum, has a native cryptocurrency called Ether. Blockchain is basically decentralized, meaning that no single actor controls the network. This is very different from the centralized databases we see banks and social media platforms use today.

Operating on a centralized system is problematic for many reasons. One big reason is security. If the central database is hacked, everything stored will be vulnerable to attack. Another reason is data ownership.

In today's world, you rarely have your own data. Worse, your data is often traded by networks you trust. Each node participating in the blockchain network has its own version of the truth. This means, nodes are simply participants in the blockchain network. Nodes communicate with other nodes to ensure the security and integrity of the blockchain.

Remember that blockchain is decentralized. So, you may be wondering: "How can all nodes agree on a unified transaction ledger without the help of a central authority?"

This all has to do with the so-called. You can think of this as a set of rules that define how nodes reach consensus on a single blockchain ledger state. Reaching consensus' is just another word for reaching agreement. At the first time I read about blockchain, there were many people often misunderstood about what it is, including me, because bloclchain have several key components to each blockchain consensus protocol.

We can take Bitcoin as an example. It uses the features a block submission scheme called proof-of-work (PoW).

How the blockchains came to that deal is a very deep topic. And I am sure we can learn more about blockchain by reading many resources in internet and I promise to kearn more about blockchain technology, and I will share them with you, my best friends.

Thank you for reading my post today and see you in the next writing.

Warmest regards from Indonesia.

***Source of image; https://www.techbusinessnews.com.au/blockchain-technology/