What is Blockchain Technology? Cryptocurrency 101
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| What is Blockchain Technology Cryptocurrency 101 |
Cryptocurrency
101 Let's get into it A blockchain is a distributed database or ledger shared
between computer network nodes A blockchain-like database stores information
electronically in a digital format Blockchains like Bitcoin Cryptocurrencies
are known for their important role in systems that keep safe. And a
decentralized record of transactions, the innovation of blockchain is that it
ensures the fidelity and security of data records and builds trust.
Without
the need for a trusted third party, the way data is structured differs
significantly between traditional databases and blockchains, a blockchain
collects information into groups known as blocks that contain data. is set.
1. What is blockchain technology?
When
a block's storage capacity is reached, it is closed and linked to previously
filled blocks to form a data chain called a blockchain. This newly added block
is then compiled into a newly created block which is then added once more to
the chain. This is done by A database that usually organizes its data into tables.
While
a blockchain, as the name suggests, organizes its data into chunks that link
this data structure together, it inherently creates an irreversible timeline of
data when implemented in a decentralized manner. each block in the chain is
assigned a valid timestamp.
Blockchain
is intended to enable digital information to be recorded and distributed when
it is added to the chain, but not modified. which cannot be changed and
consequently blockchains cannot be altered or destroyed. The concept of
blockchain, also known as distributed ledger technologies, was first proposed
as a research project in 1991 and predicted its first widespread application in
2009 in the use of Bitcoin. Blockchain usage has grown exponentially since.
2. What are the advantages and disadvantages of using blockchain technology?
Blockchain
Decentralization Thanks to the Decentralized Finance Applications of Various
Cryptocurrencies and the Development of Non-Fundable Tokens and Smart Contracts
Consider a company that owns a server farm with 10,000 computers that hosts all
of its client accounts. Used to maintain a database containing information. The
company has a warehouse building that houses all these computers under one
roof.
Each
of these computers has complete control over all the information on them, but
that creates a single point of failure, what if the power goes out at that
location, what if its Internet connection fails. What if it catches fire and
burns? On Earth, what if a nefarious actor destroys everything?
With
one keystroke, however, data is lost or corrupted, blockchain allows the data
in that database to be distributed across multiple network nodes in different
locations, not just redundantly. If one tries to enhance but also ensure the
integrity of the stored data. Alter records in one instance of the database
Other nodes are unaffected to prevent a bad actor from doing the same If a user
tampers with a Bitcoin transaction record, all other nodes in the system are
misinformed nodes. refer to and identify easily. It helps to establish an
accurate and transparent sequence of events so that no single node in the
network can alter the stored information.
3. How does blockchain technology work?
Within
it, as a result, information and history are irreversible, a blockchain record
can be a list of transactions but can also contain other information such as
legal documents identifying a state or a company's product list. Safe and
secure, blockchain technology achieves decentralized security, and the trust to
initiate new blocks is always stored in a linear fashion.
Historically,
they are always added at the end of the blockchain. Once a block is added to
the end of the blockchain, it is very difficult to go back and change its
contents unless the majority of the network agrees to do so. do it This is due
to the fact that each block has its own hash as well as the hash of the
previous block and the previously mentioned timestamp is a mathematical
function that converts digital information into a string of numbers.
Letters
to create a hash code If this information is changed in any way, the hash code
will also change. Wants to steal cryptocurrency If it modifies a copy of
itself, it no longer exists. Be in sync with everyone else's copy When everyone
compares their copies with each other, one copy will stand out and the hacker's
version of China will also be rejected as invalid.
To
succeed, a hacker would need to control and change 51 or more copies of the
blockchain at the same time so that their new copy becomes the majority copy. And
so the chain agreed with such an attack
