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Blockchain – An Overview
You must have heard the name Blockchain when using the Internet, from someone you know, or from a close friend, because it is seen or heard everywhere these days. So, in today’s essay, we’ll try to explain Block chain to you in simple terms so that you understand what it is, what it means in Hindi, and how it works.
You’ve probably heard of Bitcoins; they’re a type of cryptocurrency, or digital money, and their transactions are based on Blockchain Technology, which was developed after the Bitcoin currency was introduced. Was. This technology was initially introduced in 1991, when Stuart Haber and his colleague W.Scott Stornetta, both mathematicians, devised it.
After that, a Japanese person named Satoshi Nakamoto worked on Blockchain and improved its security, and the technology was released to the public in 2008. In 2009, Satoshi Nakamoto created the Bitcoin Cryptocurrency as a result of this.
What Is Blockchain?
Blockchain is a technology that saves and maintains transaction entries, i.e., it is a digital ledger. When a digital transaction takes place, all of the data is preserved in the form of a block (the first block is called Genesis). Cryptography technology, known as Hash, is used to encrypt the data within the block.
This is a sort of high security in which the data is kept safe; similarly, as the number of transactions grows, the number of blocks grows as well, and all of these blocks are linked together. When all of these blocks are joined to one another in a sequential fashion, a chain of blocks known as Blockchain is produced.
In Block chain, there is no centralised system, which means that both buyers and sellers can transact without the need for an intermediary (bank).
A decentralized ledger provides transparency since all nodes linked to the network, i.e. computers, have access to a copy of the ledger, and it is extremely impossible to change or tamper with an entry once it is made.
How Does Blockchain Work?
Consider the following scenario: you are a member of a kitty party in which all of the members deposit money every month, and one of the party members keeps a written account of the deposited money. As you can see, the written narrative can be altered or tampered with at any time, which means there is always the risk of error.
Consider what might happen if Blockchain Technology were employed in this situation. When a new member deposits money, his digital entry is completed, and the entire information about the entry associated to that transaction is preserved in the ledger through the block. Following that, a copy of the new entry will be sent to all linked members, which will be difficult to change without the agreement of all members, and all new and old data blocks will be preserved in it indefinitely.
Blockchain Technology was created for Digital Currency, such as Bitcoin, in which the Public Ledger, or Block chain, stores all information related to Bitcoin Transactions.
The transaction of digital currency is done directly, without the use of a middleman (bank). As soon as the coin is transferred from one node (computer), its information is communicated to all nodes linked to the network, and transactions are validated. The data of Verified Transactions is then encoded using Cryptography Technology and kept in Blocks, and many of these blocks are combined in a sequential fashion to form the Public Ledger, or Block chain.
What is the Difference between a Public Blockchain and a Private Blockchain?
In the near future, Block chain Technology will bring dramatic changes to data security, allowing for greater transparency in the workplace and the saving of time and money. Let’s look at the differences between the two forms of blockchain technology: public and private block chain.
Blockchain for the General Public
Public Blockchain is an open network in which anybody may join and, like other nodes, can observe or participate in all of the network’s activities as soon as they join. Is. No one has control over the network in a public blockchain, and changing data once it has been certified is extremely impossible. Bitcoin (BTC) and Ethereum (ETH) are examples of public blockchains, and this is referred to as a secure block chain.
Blockchain for Private Use
Private Blockchain is a centralised network that is developed or managed by a group, with varied permissions and limits applied to the nodes connecting to it. Permission must be obtained from an already connected node in order to join a new node. Ripple and Hyper Ledger are examples of private blockchains; this blockchain is regarded less secure.
How Safe Is Blockchain Technology?
When it comes to security, this technology is unquestionably safe, just as it was once thought to be extremely secure and nearly impossible to hack.
However, both sides’ technology is always evolving, and there have been numerous cases of hackers messing with the block chain by developing new hacking technologies, implying that security is a continual process that is also being included into the block chain. So that this technology can be applied to a wider range of applications.
This technique enables the job to be verified without the involvement of a third party.
- It’s tough to change or tamper with the data once it’s been saved in it.
- To keep the Digital Ledger safe, cryptography encoded technology is utilised.
- In this case, a copy of any transaction is stored on all of the network’s nodes.
- This technology’s system makes substantial use of power because it is a digital process in which Nodes, i.e. computers, work on real-time data in the thousands of millions.
- Transactions are carried out with the mutual permission of the nodes, with no involvement from the Government Organization, which increases the risk of fraud.
- Its system is highly sophisticated, making it difficult for the average user to comprehend.
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What is Blockchain, what does Block chain mean in Hindi, and how this technology began with cryptocurrency and is now utilised in a variety of fields, with work being done to improve its security. It will not be surprising if, in the future, the average person will be able to benefit from Blockchain technology as well.