Today everybody is talking about Blockchain but what is this technology all about? I’ll lay out some concepts here and try to explain this technology. Don’t worry, ill not use the same jargons used across the web.
So here we go. First and foremost Blockchain is not a cryptographic language or technology. By this I mean that Blockchain can be used for other purposes apart from building ICOs or Tokens. Now you must be wondering what other areas can this technology be used in? Well in short, Blockchain can be used in whatever domain that you can think of – Banking, Manufacturing, Record management, Medical inventory management to name a few.
That is the beauty of this technology. It can give you so many options that you will be spoilt for choice.
I know by now you must be thinking that all this is fine but what is the underlying principle of this technology. Well this technology works on the principle that once any action has been performed in the system that cannot be undone. This means that if you make any transaction to a friend that will be recorded and you would not be able to undo it and that transaction will remain on the Blockchain system forever for everyone to view.
So that was about the basics about Blockchain, now we need to know what’s in the name? Well pretty much everything. Blockchain consists of chain of blocks that are attached to each other on the network. The blocks are nothing but a collection of verified transactions that are added to the blocks.
Who verifies these transactions? Well it’s those people called “Miners”. The miners are the guys who try to verify the transactions and then add them to a Block. Why would they waste time and energy doing so? Well the basic reason is Money. When they add a Block to the chain they get some Transaction fees associated with the Blocks. I’ll not discuss the various types of miners and the mining techniques in this Blog as that is a completely separate topic for another time.
This is the very basic explanation of Blockchain Technology. After reading this I hope you understand what the name Blockchain means, what are blocks, what are miners and why do they mine.
Blockchain technology is a great technology for the future as it is open-sourced to a certain extent. The technology can be utilized by an Individual or an Enterprise customized to their needs.