Let’s Take One Example First When you go to vote in elections and When you press the button on EVM for your favorite party. Have You ever noticed or thought if there is any guarantee that your vote actually registered? That your vote actually counted. It’s Not only through EVM, even votes through ballot Papers.
When You’re given the vote using ballot paper, there is no guarantee that your vote actually counted or registered? We are guaranteed by ELECTION COMMISSION OF INDIA or any other country ELECTION COMMISSION that is election commission. Basically, blindly, we trust in that ELECTION COMMISSION. Is there no guarantee that the result for voting is proper?
But Imagine What if you verified your vote by yourself and saw all the voting information and voting counting, and this is possible by using blockchain technology. Let’s understand blockchain technology how it works but before, let’s understand the history of Blockchain.
History Of Blockchain
Blockchain technology was invented by Santoshi Nakamoto in 2008 on the white paper to solve the double-spending problem without the need for any centralized authority. Satoshi Nakamoto’s name remains unknown to date.
What is Blockchain?
Blockchain is a ledger system that uses an open, distributed record to keep track of transactions- transactions could mean cryptocurrencies, medical information, home records, voting, and more.
In Other Words, Blockchain is a decentralized platform used to store data and information. There are too many ways to store the data like Databases, Spreadsheets, Notes.
The database stores large amounts of data and information. The Database store the data in a table format, so we can easily find it and filtring it. A Database is a collection of data and information that is electronically stored on a computer network. Some People use spreadsheets to store data and information rather than a database.
Spreadsheets are designed for a single person or small group to store limited information with a limited facility. In Contrast, a Database is designed to store large amounts of data and information.
Large data and information are stored on a database, and this is stored at a computer or on a computer server or at one specific location or centralized place, and it will be managed by one specific company. In Spreadsheet Data and information stored at a computer or computer sever or at a specific location or centralized place and it will also be managed by one specific company. Now let’s understand how Blockchain is different from databases and spreadsheets.
How Blockchain differs from database and spreadsheet?
|Data will be store in form of blocks.||Data will be store in form of tables.||Data will be store in the form of a sheet.|
|Data and information will not store at one specific centralized place.||Data and information will store at one specific centralized place.||Data and information will store at one specific centralized place.|
|In the blockchain, all the data and information are structured.||In the database, all the data and information are not structured.||In the spreadsheet, all the data and information are not structured.|
|In the blockchain, all the worldwide blockchain users’ computers are connected with each other.||In the database, all the worldwide database users computers are not connected with each other||In the spreadsheet, all the worldwide database users computers are not connected with each other|
|Blockchain is more secured than databases and spreadsheets.||The database is not secured in comparison to blockchain||The spreadsheet is not secured in comparison to blockchain|
Decentralized: The Data will not store at any specific location Or at any central location that calls decentralized. In other words, there is no type of authority who can change your Data or modify, delete it.
There are lots of ways to store the data and information, but in Blockchain, the data will be stored in blocks.
Blocks: In Blockchain, The Information is structured in the form of blocks. Every block is mainly created by three main things. The First Thing is DATA and the second is HASH, and the third is the HASH OF THE PREVIOUS BLOCK.
Data: In each block, Data will store information like Transactions.
Hash: Each block has its fingerprint known as HASH. This is the way uniquely identifies a block among other Blocks. Every block has its own fingerprint.
Hash Of Previous Block: Every block is directly connected with the previous block, and each block saves the fingerprint of the previous block That called the hash of the previous block.Every Block link with each other that also called a blockchain.
(Hash of Previous Blocks)
Let’s understand the above image. The First block is connected to the second block, and the second block is connected to the previous block, and the hash of each block and previous hash is the same.
Nodes: In simple terms, computers on a blockchain platform are called Nodes.
How Blocks Work and how blockchain is so secured?
There are lots of security qualities in Blockchain Technology. It’s based on the principle of cryptography and decentralization, which ensure trust in transactions. The data are structured in blockchain technology or distributed ledger technologies, and because data are structured in the Blockchain, each block contains a transaction. All transactions within the blocks are validated and agreed upon by a consensus mechanism, ensuring that each transaction is true and correct.
Blockchain technology enables decentralization through the participation of members across a distributed network. There is no single point of failure, and a single user cannot change the record of transactions. However, blockchain technologies differ in some critical security aspects.
Types of Blockchain Networks
There are at least four types of blockchain networks.
- Public Blockchain: There is no restriction for users in the public blockchain. Anyone can do transactions and as well as become a validator. Such networks offer economic incentives for those who secure them and utilize some type of a proof of stake or proof of work algorithm.
There is two most famous cryptocurrency use blockchain first is bitcoin and the second is ethereum.
- Private Blockchain: A private blockchain is permissioned. One cannot join it unless invited by the network administrators. Participant and validator access is restricted. To distinguish between open blockchains and other peer-to-peer decentralized database applications that are not open ad-hoc compute clusters, the terminology Distributed Ledger (DLT) is normally used for private blockchains.
- Hybrid Blockchain: A hybrid blockchain has a combination of centralized and decentralized features. The exact workings of the chain can vary based on which portions of centralization decentralization are used.
- Sidechains: A sidechain is a designation for a blockchain ledger that runs in parallel to a primary blockchain. Entries from the primary blockchain (where said entries typically represent digital assets) can be linked to and from the sidechain; this allows the sidechain to otherwise operate independently of the primary blockchain (e.g., by using an alternate means of record keeping, alternate consensus algorithm, etc.).
Conclusion: The Future Of Blockchain
Yes, without any doubt, Blockchain is benefits will soon attract businesses and organizations around the world.
Blockchain is the underlying technology behind all cryptocurrencies like bitcoin and Ethereum, has the potential of changing the way we work and communicate, making it more secure, efficient, and trustworthy.