Before knowing about Blockchain Technology, it’s important to know about the two types of systems that store data- Centralized and Decentralized system. These are classified based on the authority of the data.
The first type of system is called the Centralized System. In this type of system, the data is under the control of a central authority.
Most of the platforms nowadays store data in a centralized form. Examples include Netflix, Swiggy, Uber, etc.
Broadly, there are two major drawbacks of such a system. First, the data could be manipulated by the central authority. Second, there are chances of bribery which could lead to hierarchy or bias.
A Decentralized System solves the two major drawbacks of the Centralized System as in this type of system, the data is with all the members and open to all.
One of the key examples of a Decentralized System is Blockchain Technology.
In 1991, researchers created Blockchain Technology. It took a boom in 2009 when it was used in the field of cryptocurrency as an integral part of bitcoin. And today, bitcoin is booming in the world of cryptocurrency.
Blockchain is a chain of blocks that contain data, the hash of the block, and the hash of the previous block. Read the working of blockchain in detail.
Two main reasons that explains blockchain security.
So the Blockchain can be defined as a near real-time peer-to-peer distributed immutable database.
To add a block in the chain, the majority of the people will have to approve the block to be added. The block in which there is some kind of work or data related to the chain will be approved by most people and hence would be added to the chain.
Eventually, blockchain is as much a political and economic hypothesis as a technological one. Blockchain technology provides a brand-new way to consider how we tend to agree on things, for the first time, multiple untrusted parties can create and agree on one single source of truth, without the use of a mediator.
Blockchain is one of the trending technologies to learn and to boost your career aspiration.
Blockchain is decentralized system.
Blockchain is a chain of blocks that contain data, the hash of the block, and the hash of the previous block.
Blockchain technology is used beyond cryptocurrency in the field of logistics, smart contracts, money transfer, Voting mechanism, protection of personal identity, advertising industry, real estate, and much more.
Hope this beginner’s guide answers your basic questions. If you have any further questions, ask in the comment section below.