Blockchain - Explained
Before explaining what is blockchain, I will list the facts about blockchain first.
Facts about Blockchain :
- Blockchain is considered to be the most secured transaction found till date.
- No hacker ever hacked blockchain network till now.
- By 2030 every bank will use blockchain for their transaction.
- Blockchain is set to bring a revolution in internet in the future.
Blockchain :
Blockchain is simply a secured transaction using blocks which has specific hash value which will act as a unique Id for the block which are inter linked. The hash value is like a finger print.
The blocks are the storage device of the data. Each block has a unique cryptographic hash value. The blocks are connected in a way that the block's hash value will be the next block's previous hash value. You can understand better in the below picture.
This shows that the hash value the block is the previous value of the next block. This is how it forms the chain. This is how the blockchain is connected. In order to get a successful transaction more 50% in the network should validate the data.
Current system vs Blockchain :
First I will break out our current system. In our current system , the specific data and transactions are stored by specific company's server. This is the condition of our current system. This will leads to higher maintenance and would lead hackers to attack easily as they need to attack only one in order to gain the access of the whole firm's data. These are the disadvantages of our current system.
While the Blockchain is based on the peer to peer connections. Which means we all act as a server for the transaction. We all can see the data. The unauthorized change in data will collapse the whole chain. This made the hackers impossible to attack the transaction. Hence blockchain becomes the most secured transaction till date.
How this much level of security is possible?
As I said the block's hash value will be the previous hash value of the next. Thus, if the hacker try to change the data in one bock, it will automatically changes the hash value which will interrupt the chain. In order to have a successful attack the hackers needs to gain access over 50% of the network, which is not possible till the date. Thus blockchain remains the secured way of transaction and remains a challenge to the hackers.
Example:
The simple example of peer to peer connection is downloading a torrent file. Everybody seen the term seeding in the torrent file right. That will upload the data. In this process a new user will download the torrent file in to different small parts from the previous downloader instead of the original server. This will split the work to different servers and will make the process faster and secure than ever.
Important :
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