What Is Blockchain Technology And How Does It Work In 2021?
Blockchain is a technology that aims to increase transparency in sharing and security while sending & Receiving. As its name implies, this technology is based on blocks and chains. The concept of blockchain needs to be understood by many internet users.
So, let’s move on to the main theme to get to know about blockchain technology. Block contains the information and timestamp of activity done. When a block is filled, it becomes the part of the chain where previous blocks (with the previous information) are placed in chronological order.
Here the notable element is blockchain which is also called a publicly distributed database, unlike the common database that is stored only in a few computers. Through these two examples, I’m going to link this terminology & its concept with relatable information.
Let’s suppose, there are 7 people in an office A, B, C, D, E, F, G. If someday A borrows $1 from B, C, D, E, F, G will not have any idea when A borrowed $1 from B.
Let’s suppose, there are 7 people in an office A, B, C, D, E, F, G. if someday A borrows $1 from B, then C, D, E, F, G will be given access to this information. All people will be notified about the time and amount that A Borrowed from B. In the blockchain, C, D, E, F, G will verify this activity and this activity will be saved in the form of a block. This block information will be available for all 7 members and blockchain technology will sort in chronological order. If anyone among 7 members tries to alter or temper the information in this block, then 6 other people will easily trace the bad actor who is trying to temper the information.
Let’s consider, a family consisting of one father, one mother, 3 sons, and 3 daughters. Father gets a salary and spends on house construction but no family member knows a complete detail. And one son gets pocket money more than other brothers but doesn’t have any idea of it. A daughter spends most of her money on her makeup but details are not shared completely with family.
In blockchain technology, when the father gets a salary, a block will be created that will contain the source of income, amount of income, and date/time. Moreover, this block will be available for 3 sons, 3 daughters, and for the mom too. When the father spends money on construction, a second new block will be created with all details. When the father gives pocket money to his daughter and sons details will be available for all family members but no one can alter the information. If someone makes any change in the block, then that block will be cross-checked and will be verified by the rest of the family members.
Due to the decentralized idea of blockchain, everything exchanges can be straightforwardly seen publicly. Every hub has its own duplicate of the chain that gets refreshed as new blocks are affirmed and added. So, the tracking of details is accessible for all and attempting to temper the information is almost impossible.
What Is Blockchain Technology And How Does It Work?
These are the essential points that help you understand the term and its functionality.
- Blockchain acts like a ledger that is available for all users on the network.
- Tempering of the information is next to impossible because the bad actor will need to access and alter the information on more than 70% of created blocks on the chain.
- Blockchain technology promotes a decentralized network that is immutable and the information stored is irreversible but each block is available in chronological order.
- The common database can be hacked, damaged, or attacked by lethal viruses but in blockchain technology information is shared onto the network and it becomes easily accessible to recover authentic information within a few seconds.
Due to the high level of transparency, blockchain technology is very useful in the voting system. As it was successfully tested in West Virginia’s mid-term election in November 2018.
By Syed Junaid Abbas