Blockchain Technology EXPLAINED In Terms That Everyone Can Understand!

Blockchain Technology EXPLAINED In Terms That Everyone Can Understand!

Welcome back to Tech Splash, today on the channel we are going to feature Blockchain technology explained for dummies.. Simply put, a blockchain is a special kind of database. According to cigionline.org, the term blockchain refers to the whole network of distributed ledger technologies. According to Oxford Dictionaries, a ledger is “a book or other collection of financial accounts of a particular type.” It can be a computer file that records transactions. A ledger is actually the foundation of accounting and is as old as writing and money. Now imagine a whole suite of incorruptible digital ledgers of economic transactions that can be programmed to record and track not only financial transactions but also virtually everything of value. The blockchain can track things like medical records, land titles, and even voting. It’s a shared, distributed, and immutable ledger that records the history of transactions starting with transaction number one. It establishes trust, accountability, and transparency.

As you can see in the figure, each block mainly has three elements: Data: The type of data depends on what the blockchain is being used for. In Bitcoin, for example, a block’s data contains the details about the transaction including sender, receiver, number of coins, and so on. Hash: No, I’m not talking about that kind of hash. A hash in a blockchain is something like a fingerprint or signature. It identifies a block and all its content, and it’s always unique. Hash of previous block: This piece is precisely what makes a blockchain! Because each block carries the information of the previous block, the chain becomes very secure. Interfering with a block on the blockchain is almost impossible to do. The first way a blockchain secures itself is by hashing. Tampering with a block within a blockchain causes the hash of the block to change. That change makes the following block, which originally pointed to the first block’s hash, invalid. In fact, changing a single block makes all the following blocks invalid. This setup gives the blockchain a level of security. Find out more about Blockchain technology in this video.

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