What actually is Blockchain?

What is Blockchain?

Blockchain is a kind of database or system that is Decentralized and it's nearly impossible to change or modify the data it contains.

Research on Blockchain was started in 1990 but was first implemented in 2009 by Satoshi Nakamoto. Blockchain actually works as a ledger and it's each box contains a single record. Structured like a chain of blocks each block contains relevant information and a hash. Hash is actually a unique code generated after someone stores data inside the block. The other thing that is included in a block is a previous hash, which means a particular block's hash is also stored in its upcoming next block. Only the block which has been created at first doesn't store the previous hash and is known as Genesis block. In this way we can track the history of each and every block, that's why we can easily track any information, keep every information unique and hacking is completely impossible.

Why Blockchain is so reliable?

Blockchain is protected by multiple layers. If anyone tries to make any changes in information included in any block its hash will be changed, not only for that particular block but afterward blocks previous hash will be changed as well. If someone tries to fix the hash of the particular block he has to fix the previous hash of each afterward blocks as well, and it will take so much time that it's completely impossible for anyone to succeed in this process. Another thing that is within the network every member has a copy of the blockchain, so if anyone tries to make any changes in a particular block he or she has to first share it with every member included in the network. If the majority of the vote comes in your favor only then you can make any changes in the information, otherwise, it will be rejected.

These days many domains use blockchain. Especially in cryptocurrency domains or in real-estate domains blockchain is used.

There is a blockchain known as Ethereum that can be used by us, for that we need to learn Solidity language. After learning the language you can implement it in Ethereum and can use blockchain for your own applications.

Types of Blockchain -

There are different types of Blockchain networks available such as Public, Private, Permission, and built by Consortium.

1. In Public Blockchain Network anyone can join. The drawbacks for this kind of network are weak security compared to other Blockchain networks and little privacy for transactions.

2. Though Private Blockchain Network is a peer-to-peer network, but it's controlled by one organization, significantly boosting trust and confidence within its participants.

3. For Permissioned Blockchain, networks need to have an invitation or permission to join this kind of network. In this kind of network, there is a restriction on who can join the network and in what transactions.

4. For Consortium Blockchain Networks multiple organizations manage the duty of maintaining the Blockchain. These organizations decide who will submit transactions or access the data. These kinds of Blockchains are the best for the business because all participants will have permission and shared responsibilities.

Softweb Development Technologies can help you to understand the uses of Blockchain clearly.