- One should not be able to use the same “Digital money” more than once.
- People should not have trouble trusting it.
- The system should be secure and yet readily available to all.
- The way of transferring money should be very secure
Many have tried and failed. But one came up with something the would change the concept of digital cash from thereafter. He went by the pseudonym, Satoshi Nakamoto. He has not revealed his identity yet. No one is sure if it’s a person or a group. Blockchain technology is the brainchild of Nakamoto invented in 2008.
Blockchain technology is the brainchild of Satoshi Nakamoto.
What is Blockchain Technology?
Image source: blockgeeks
The blockchain is a distributed digital ledger that is spread across thousands of devices. It is regularly updated, and the system is capable of correcting itself if anything goes wrong. If you get the idea of this, then you’ve already learned the basics.
Blockchain is like Google Docs
A blockchain can also be compared to a google docs or slides page. Many can open it at the same time. If someone edits something, The change is reflected in all the devices. Say one of the devices gets disconnected from the internet for a few minutes. When the device is back online the page updates itself to the latest version and hence tackling any errors.
Definition of Blockchain
A blockchain is a digital and decentralised public ledger. It stores all cryptocurrency transactions, hence it continues to grow. The Bitcoin blockchain is near 150gb at the time of writing this. All records added in chronological order. Since this allows everyone to run blockchain software, It does not need any central authority. A crypto transaction is a block. Many Blocks stacked together becomes a blockchain. Bitcoin blockchain contains all bitcoin transactions ever happened.
“Blockchain solves the problem of manipulation”
-Vitalik Buterin, Inventor of Etherium.
The blockchain is transparent, and it cannot be corrupted. Even if someone manages to add a fake transaction to the blockchain, It won’t last very long before the invalid transaction gets corrected. This is achieved by having many nodes working together.
Applications of blockchain
Blockchain technology has a variety of applications. The idea of decentralisation and transparency adds to the possibilities.
Liberal Alliance, A political party from Denmark became the first to vote using blockchain technology. Using this technology to vote is very secure and there is very little chance of error. The beauty of this system is that since there is no central authority, The system cannot be corrupted.
The Republic of Georgia is creating a blockchain based registry. Andhra Pradesh, An Indian state is partnering with a Sweden based startup to make their land ownership system more transparent. Land registry frauds are very common in India and this initiative plans to irradicate it.
Smart contracts are contracts which can be executed without the need for a human being. Ethereum is a blockchain implementation that allows for coding contracts.
- Steemit is a social media built on top of a blockchain.
- BitPesa is a blockchain based wallet app in Africa.
- Storj uses blockchain technology to setup a cloud storage service.