What is Blockchain ? – An Introduction
In the recent times there has been some confusion with regards to Blockchain. This is however due to its close proximity to Bitcoins which most of us are aware of. Blockchains in simple terms can be called as a collection of data. The data could be like the ones found in ledgers and account books. Although there are many ways to enter transaction data in digital form, what makes Blockchain so special is its versatility.
Over the internet other than money, commodities such as images, videos and the text files do carry some value. Since most commodities can be easily reproduced digitally, the virtue of originality is of great importance. These assets are of a great value to its creators, in the event of transfers of these assets, there are mediators who play a dramatic role in between. They serve as a link between the source and the destination, their duties include record keeping and authentication.
The blockchain is a way for the source to have full control of their assets all the way to the destination. The ledger of Blockchain is distributed at multiple locations, all synchronised at the same time. The access and visibility of the ledger can be edited. Blockchain’s decentralised, secure , open & cryptographic nature allows people to trust each other and transactions are more transparent making the need for intermediaries obsolete.
It can contain information about financial transactions.
It can replicate data and can be synchronised across widely distributed systems in a real-time window.
It can transmit over a peer-to-peer network.
It can be in the form of a code written by some parties or and can be read by certain parties.
The real time synchronisation over multiple platforms make it hard to change historical records or to edit information or at least make it easy to detect when someone is trying to do so. Blockchain uses highly secure cryptography and time coded data stamped digital signatures to prove identity, authenticity and enforce read/write access rights and more.
How does it work
Blockchain for Bitcoins
Bitcoin is an unregulated cryptocurrency, that was created in 2008 to bypass government regulations, remove third party intermediaries and increase transparency among the business concerns. The Blockchain part of the Bitcoin is the information ledger, the ledger is highly secure due to its decentralised mode of operation. The Blockchain part of the Bitcoin can be applied all digital assets.