Blockchain Basics For Newbies
Blockchain is defined as a digital ledger in which transactions are made in cryptocurrency are recorded chronologically and publicly.
Another Layman definition: It is digital Ledger is an immutable public record of digital transactions. Blockchain is build based on the concept of decentralization of data.
Blockchain is simply a data structure where each block is linked to another block in a timestamped chronological.
It is decentralized technology to maintain the records of cryptocurrency transactions.
5 points to know about digital ledger are as follows:
- Every new record is validated across the distributed network before it is stored in a block.
- All information once stored on the ledger is verifiable and auditable but not editable.
- Each block is identified by its cryptographic signature.
- The first block of the block chain is known as the Genesis Block.
- To access data or first created block, We have to traverse from last created block to the first block.
Real world applications of this disruptive technology:
- In current world, bank charges 2-3% transaction fee for one big transaction and also charges 3-5% for transaction in different currencies. Cryptocurrency has very less transaction charges of 0.1-0.2%.
- Counterfeit and Unethically transaction can be avoided. Since the ledger is maintained, all the fraudulent transaction can be found.
- The currency value is depreciating and Gold is handled by government. Blockchain can provide power to people and can be controlled by people as it is decentralized.