INTRODUCTION TO BLOCK CHAIN TECHNOLOGY
Block chain is a decentralized system where a list of records called blocks that store data publicly and in a sequential order without the involvement of third parties like banks, the government and other financial intermediaries during the transaction between a sender and receiver (i.e the users maintain the data and have democratic authority to approve transactions , even if one node or data on a user computer gets corrupted, the other participants will be alerted immediately, and they can rectify it as soon as possible, due to the fact every user has the same copy of the ledger).
The transactions are encrypted using cryptography inorder to protect the privacy of users and prevent data from being compromised.
How does it work?
Block chain is the combination of three important technologies: peer-to-peer network, a digital ledger and cryptography.
Peer-to-peer network is the interconnection of a large group of individuals who act as authorities to reach a consensus on transactions, among other things.
A digital ledger is where all transactions are stored, it works like a spreadsheet containing all the numerous nodes in a network and has the history of all purchases made by each node.
Cryptographic keys are two types - private key and public keys, the public key is just like your email it is used as your id while the private key is like your password only to be known by you.
The first ever blockchain protocol was proposed by David Chaum in 1982, in his Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.but was first popularized by Satoshi Nakamoto in 2008 and ever since then blockchain has become the to ensure the privacy of users.
On the next Episode we’ll dive deeper into the technology discussing the layers of the architecture. Thanks for reading, till then BYE😉.
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