Blockchain (block chain) technology is based on crypto currency, but it has a much wider potential. In recent years, governments, private companies and entrepreneurs have been looking for the best ways to use blockchain technology for different purposes.
Blockchain technology can be complicated and difficult to understand. We have compiled a few-point review of the most important things you should know about Blockchain. We think that the compilation will help you understand this technology.
1.What is Blockchain?
The blockchain created by a person or group called Satoshi Nakamoto is also known as distributed notebook technology. Blockchain is basically a database, but it does not belong to an organization, government or any authority, but to the network itself.
Keeps public records of changes in ownership of an asset. The database operates according to the rules of the network and each database created can be used to create and track digital tokens, such as crypto currencies.
2.How does it work?
When a new computer or node joins the network, the network can begin processing. This network will consist of millions of computers worldwide. Each time a process occurs, details appear on the network and a current record of everyone and each process is created. In addition, all data included in a blockchain must be verified by the network.
The operations are grouped in a “block olan that will be added to the database later. In this way, the blockchain becomes a complete and complete historical record that gives information about who owns what in the network. The data is public, but it is not clear who or who made the transactions. This decentralized process is designed to ensure that data on the network cannot be corrupted and that cyber attacks are very difficult because they are hosted by millions of different people.
3.What is a miner?
Blockchain works with the help of miners and continues to work. Therefore, mining is very important for this technology. How miners work depends on the system.
Take crypto coins. For example, if we talk about the popular crypto currency Bitcoin, a miner is chosen to take over all the transactions, organize the blocks, verify and add them to the chain, and as a result earn Bitcoins as prizes. With these processes chain continues to process. There are different approaches to other crypto currencies.
4.How to use?
Silicon Valley and Wall Street think the blokchain can change everything. And they’re right. Because Blockchain really has immense potential.
The revolutionary potential of Blockchain is currently largely theoretical and general in use to accommodate crypto currencies. However, it is expected to have major impacts on banking and payment systems, voting records, artwork and even diamond property records. On the other hand, it has the potential to provide great convenience in matters such as property rights transfers, stock transfers without intermediaries and inexpensively.
As expected, states also show interest in this technology. There are many states that have announced that they plan to use this technology, with different news coming from each continent. For example, the blockchain is rising in Africa. Kenya plans to use blockchain technology for the housing it distributes to its citizens. Rwanda, another African country, is considering using this technology to facilitate the supply of tantalum metal, an important import product for the country.
The West side is experiencing similar developments. The UK Government said that blockchain technology could be used to “collect taxes, distribute payments, issue passports, maintain land records, maintain the supply chain of goods and services, and ensure the integrity of government records and services..
Contrary to popular belief, crypto currencies have not been introduced in the last 5 or 10 years ago. The history of crypto coins dates back to the 80s. So crypto currencies were also ahead of the blockchain. However, trading was carried out anonymously and without supervision. Therefore, the crypto money was anonymous and uncontrolled, so it could be used for illegal transactions. Blockchain helped bring oversight and discipline to this field.
6.Is it safe?
Blockchain is one of the best ways to secure transactions for many people who are familiar with the technology. Each block in the chain depends on the previous and the next… Therefore, changing a single record is difficult because it requires changes in the chain and the network will notice it.
Blockchain records are protected by cryptography, and network participants can access them with their own private keys. If a record is changed, the peer network suspects it and the signature becomes immediately invalid. At the same time, because the blockchains are decentralized, it is unlikely that hackers will cause damage to individual computers.
In reality, no system is perfect and some blockchain networks are safer than others. Block chain security and the crypto currencies that work on this technology are constantly being developed and efforts to improve it have been carried out rapidly in recent years.