The blockchain is an ingenious invention that is the brainchild of a person, or group of people, that’s known by the pseudonym Satoshi Nakamoto. It has evolved into something great, which prompts many people to ask, which is blockchain and the digital finance token that is often associated with it, cryptocurrency (https://cryptointelhub.com/)?
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions, but also virtually everything of value. Simply put, by allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. This internet has also ushered in the world of successful digital finances. In fact, it was originally devised for Bitcoin, a digital currency. Now, the tech community is finding many other uses for the technology.
How Does Blockchain Work?
To understand, you can picture a spreadsheet that is duplicated thousands of times across a network of computers, then, this network is designed to regularly update this spreadsheet. This gives you a basic understanding of the blockchain.
Information held on a blockchain exists as a shared, and continually reconciled, database. It isn’t stored in any single location, which means that its records are truly public and easily verifiable. There is no centralized version of this information that hackers can corrupt, as it’s hosted by millions of computers simultaneously, and it is accessible to anyone on the internet.
Since it cannot be controlled by any single entity, blockchain has no single point of failure. Like the internet itself, it has built-in robustness. Since its invention in 2008, the Bitcoin blockchain has operated without significant disruption. The technology is completely transparent and incorruptible. It lives in a state of consensus that automatically checks in with itself once every ten minutes, and has a kind of self-auditing ecosystem of digital value. Each group of these transactions is referred to as a “block.”
What Are Nodes?
A network of computing “nodes” make up the blockchain. A node is a computer that is connected to the blockchain network, using a client that performs the task of validating and relaying transactions. Each node is an “administrator” for the blockchain. Together, nodes and the blockchain provide a wholly different vision of how the internet can function.
What is Cryptocurrency?
Along with blockchain technology, cryptocurrencies were introduced to the world in 2008 by Satoshi Nakamoto. If you reduce it to a simple definition, cryptocurrencies are merely limited entries in a database, that no one can change without fulfilling specific conditions. In fact, this is exactly how you define a currency: money is all about a verified entry input into a database of accounts, balances, and transactions.
With cryptocurrency, any transaction is known almost immediately by the whole network, and after a specific amount of time, it becomes confirmed. Confirmation is a critical concept; if a transaction is unconfirmed, it’s pending and can be forged, however, once it’s confirmed, it is set in stone and cannot be reversed. It becomes part of a record of historical transactions: the blockchain.
Both introduced by Satoshi Nakamoto in 2008, the blockchain and cryptocurrency have ushered in a kind of revolution for the internet and the world of digital finances.