Table of Contents
If in the past ten years you’ve been following banking, investment or cryptocurrencies, you might have heard the word “blockchain” underlying the network’s record-keeping technology. For more precise and accurate information on bitcoin and cryptocurrency, check the bitcoin trading site.
What is Blockchain? What is it?
Blockchain appears sophisticated, and it can undoubtedly be, but the basic notion is pretty simple. Information or data is generally organized into table formats in databases to search and filter specific information more easily.
Large databases do this by accommodating data on servers composed of powerful processors. While a table or database may be open to any number of individuals, it is frequently owned by a company and managed by a designated person who has full authority over its functions and data.
Structure of Storage
The structure of the data is a significant distinction between a conventional database and a blockchain.
A database organizes its data into tables, while a blockchain structures its data into chunks (blocks), as their name indicates. It allows all blockchains to be databases but not all databases to be blockchains. This method also provides an irreversible data chronology if implemented in a decentralized manner. When added to the chain, every block in the chain gives an accurate time stamp.
It is helpful to consider it from the perspective of how Bitcoin built it. Likely, Bitcoin needs a blockchain group of computers. This blockchain is only a particular database format for Bitcoin, which contains each Bitcoin transaction. In Bitcoin, like other databases, not all these computers run on the same roof. Each computer or combination of computers is in use by a separate individual or group of persons.
Imagine a firm owning a server of 10,000 machines with a database containing all information about its customer. This firm has a warehouse under one roof that includes all those computers and controls all machines. Similarly, Bitcoin includes thousands of computers, yet every device or group holding its blockchain is geographically different and operated by people or persons. These Bitcoin network computers are called nodes. Bitcoin’s blockchain is in this concept in a decentralized fashion. But there are private, centralized controlled by a single company.
Data are the entire history of all Bitcoin transactions for Bitcoin. If a node has a data mistake, it can utilize thousands of other nodes to fix itself. Thus, no network node may modify the information contained in it.
If one user tampers with the Bitcoin transaction record, the other nodes will reference one other and quickly detect the node with the wrong information. This approach allows for an accurate and visible order of occurrences. This Bitcoin information is a transaction record, but a blockchain may also keep a lot more information, including contracts, state IDs, or an inventory of products.
Is Blockchain Safe?
Blockchain technology is responsible for security and trust concerns in several ways. Initially, new blocks are always stored chronologically and linearly. In other words, the blockchain is linking to the “end.” If you look at the Bitcoin blockchain, each block has a high position on the chain. The league has reached 656,197 blocks by November 2020.
After a block is to the end of the blockchain, it’s complicated to reverse and change the block’s contents unless there is a consensus among the majority. Each block has its hash, its hash preceding it, and the time stamp indicated above. Hash codes are producing by the math function, which transforms digital information into a number and letter string. If this information is updated, the hash code also changes.
It is why it is vital for safety. If blockchain altered the copy, blockchain would no longer match the copy of each other. If everyone else refers to the blockchain copies they use, they would observe this one copy standing out, and the chain version of that hacker would see it as illegitimate.
Afterward, the hacker should concurrently control and modify 51 percent of blockchain copies to make a majority and therefore the agreed chain of their new document. Such an attack would cost significant money and resources since it must replace all the blocks because the stamps and hash codes are different.