What is Blockchain?

Hi,Today I am going to tell you

What is Blockchain?

Ever wonder if there's an easier way to complete transactions without having to deal with online wallets banks and third-party applications well it's possible thanks to blockchain.

Here's everything you need to know about

blockchain.

Imagine four friends Ben,John,Edward and Chris meet up for dinner.After they're done Ben pays the bill and all of them decide to split the expense amongst each other 

Now on the next day when Chris sends his chair to Ben via online money transfer the transaction goes through without a hitch.

Then John and Edward's and their respective shares to Ben but their transactions don't go through the failed transaction sites some issues at the bank.That's when Jack comes to know about the many ways a bank transaction could fail,It could be due to technical issues at the bank,One of their accounts were hacked,Daily transfer limits being exceeded in sometimes additional charges like transfer charges associated with transferring money

TO SOLVE THESE PROBLEMS THE CONCEPT OF CRYPTOCURRENCY CAME INTO EXISTENCE.

Cryptocurrencies  are a form of digital or virtual currency that run on a technology known as BLOCKCHAIN.Thanks to blockchain, cryptocurrencies are immune to counterfeiting don't require a central authority and are protected by strong and complex encryption algorithms and in a market of more than thousands of cryptocurrencies

like Bitcoin To know more about Bitcoin ClickHere Ethereum To know more about Ethereum ClickHere  and so on.Now let's go back to our previous example and have filled John and Edward send Ben two Bitcoin's each as their contribution to the previous night's dinner.Let's assume John,Edward and Chris have three bitcoins in reserve.While Ben have five.First Chris simms two Bitcoin's to Ben.A record is created in the form of a Block the transaction details between them is permanently inscribed in this block.This record also holds the number of Bitcoin's.

So after Chris's transaction,Ben have seven Bitcoin's .While Chris has one following this John and Edward's and two Bitcoin's to Ben a new block is created for each of these transactions.These blocks hold the transaction details as well as how many Bitcoin's John,Edward and Ben have in reserve.These blocks are linked to each other as each of them takes reference from the previous one for the number of Bitcoin's each brand owns this chain of Records or Blocks is called a Ledger and this ledger is shared among all the friends which acts as a public distributed.Ledger this forms the basis of BlockChain .

So what happens when Chris have only one Bitcoin left and he tries to send two more Bitcoin's to Ben?

The transaction will not go through this is because all his friends have copies of the Ledger and it's clear that Chris has only one Bitcoin left.His friends will flag this transaction as invalid.

A Hacker will not be able to alter the data in the BlockChain because each user has a copy of the Ledger the data within the Blocks.Are encrypted by Complex Algorithms.All of this is made possible with the help of BlockChain Technology.

BlockChain  can be described as a collection of Records linked with each other.Strongly resistant to alteration and protected using Cryptography.

Now let's have a closer look at the Bitcoin transaction between Ben and Chris and find out how it works every user in the Bitcoin network has two keys a Public Key and a Private Key.

The Public Key is an address that everyone in the network knows of like an email address of a user.

The Private Key is a unique address that only the user has knowledge of something like a password.

First Bill passes the number of Bitcoin's he wants to send to Ben along with his and Ben's unique wallet address through a hashing algorithm all of this is part of the transaction details.These details are encrypted using encryption algorithms and using fills unique private key.This is done to digitally sign the transaction and to indicate that the transactions came from Chris.This output is now transmitted across the world using Ben's Public Key with this the message or transaction can be decrypted only by Ben's Private Key which only Ben has knowledge of different cryptocurrencies use different hashing algorithms while Bitcoin use the SHA-256 algorithm.

Ethereum  which is also a famous cryptocurrency uses one knows as ETHASH.

This transaction and several other similar ones are taking place all around the world.These transactions are validated and then added block by block.The people who validate these blocks are called Miners.

For a Block to be validated and added to a blockchain.Miners need to solve a complex mathematical problem.The miner who solves this first adds the block to the BlockChain and is rewarded with 12.5 Bitcoins.

The process of solving the complex mathematical is called Proof of Work and the process of adding a Block to the BlockChain is called Mining with this Chris and Ben wallets are updated just like every person in the network who has completed a transaction.

That's it for today.I hope you will like this Blog.

ClickHere to know about Cryptocurrency's 

To know about CryptoCoins Click Below 

ClickHere to know about Bitcoin 

ClickHere to know about Ethereum