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Blockchain Technology Explained for Beginner

Blockchain Technology Explained

If you are looking for a short introduction about blockchain technology explained. Then you are in the right place. We have plenty of information about blockchain technology.

You guys must be familiar with the term cryptocurrency. As the world has seen many ups and downs over the past decade. Where you have heard about “BitCoin”, “One Coin”, “Leo Coin” and many other cryptocurrencies. You must be familiar with the terminology “Blockchain” the record-keeping technology behind the bitcoin network.

Well, there are many misconceptions about blockchain technology let’s throw light on some of those.

Misconceptions:

  • Many people think that bitcoin is basically blockchain while it’s the opposite. Bitcoin is the part of the blockchain as its implemented in the blockchain technology.
  • Blockchain can only be used for the financial sector.
  • Everyone can see private information on the blockchain.
  • Smart contracts have the same legal value as the regular contracts.
  • Blockchain can only be public.

Let’s say blockchain is like

Blockchain Technology Explained

Blockchain is the backbone of a new type of internet.

The Decentralized Era:

  • The mainframes with dumb terminals (the 1960s) IBM took the market.
  • The desktop (the 1980s) Apple came into the market with the new idea.
  • The internet, all desktops connected (the 1990s).
  • Walled Gardens, all powers with big companies (Facebook, Google, and Amazon).
  • The Blockchain era, a decentralized internet (Web 3.0).

Revolution of Web

  • Web 1.0 (1989-2004) Eco System
  • Web 1.0 was just a set of static websites with a load of information and no interactive content.
  • Web 2.0 (2006-2016) participation and Interaction
  • The global sharing of information spawned the age of “Social Media” YouTube, Wikipedia, Flicker, and Facebook gave voices to the voiceless and a means for like-minded communications to thrive.
  • Web 3.0 (2016+) Understanding Self
  • Rather than concentrating the power (and data) in the hands of huge behemoths with questionable motives, it would be returned to the rightful owners.
Blockchain Technology Explained

Q: What is Blockchain Technology Explained?

In its simplest form, Blockchain is a distributed database, an unchangeable record (or Ledger) of asset ownership.
❖ Blockchain is primarily defined as a shared immutable ledger, or just an “unchangeable record of who owns what”
❖ Global, peer to peer and distributed immutable record of transactions.
❖ Used to transfer and permanently record any change of assets between two or more parties without intermediaries.
❖ Assets are defined as anything of value that requires accountability of ownership, i.e. money, cryptocurrency, real estate, records of any kind, identities, personal property, etc.

Old Technologies BlockChain Uses:

Blockchain is a combined use of existing older technology.
❖ Ledger – 7,000-year-old technology, triple-entry accounting
❖ Cryptography – “coding messages” has been used for thousands of years, and still used in complex S/W
algorithms for military and business applications like Blockchain
❖ Computer Networking Technology – Blockchain makes extensive use of P2P networking architectures

Blockchain Technology Rules

Once something has happened, and we create a record of that, the fact that it happened never changes
❖ Data written into a blockchain is a historical record and is immutable
❖ Blockchains have to prove that they haven’t been tampered with
❖ All the nodes (computers) running on a blockchain must agree (i.e. have consensus) on ALL the data stored on it (aka – The World State of the Blockchain)

Blockchain can be summed as:

A record-keeping system – of Money
❖ to record the transfer of “tokens” or “coins” representing wealth (Monetary/currency)
❖ Bitcoin and other cryptocurrencies such as Ether, Litecoin, Monaro, etc.

Blockchain Technology Explained

Let us know if you want to know more about blockchain and cryptocurrency through comments. And we will bring part 2 in which we will describe all the related information.

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