What is Blockchain Technology And Why Is Everyone Talking About It?

Ready to begin your journey with blockchain technology? Just like any other trip, it is important to create a plan so you have time to sort out your priorities and maximize your resources. Before diving deeper into the fascinating world of blockchain, you must understand its basic concepts.

Blockchain Basics: Understanding the Block

Let’s start with the concept of a block. It is the basic container for information in a blockchain. So what’s inside one?

Main Elements of a Block

1. Data
2. Hash
3. Hash of the previous block

The type of data depends on what the blockchain is being used for. In Bitcoin, for example, the block’s data contains financial information such as the sender, receiver, receiver, etc. The hash works like a fingerprint or signature that identifies a block. The hash of the previous block will be carried to the next block, completing the chain and making it secure.

Blockchain Basics: How the Chain Works

Every block contains transaction data and has a certain storage capacity. When it’s filled, it closes and links to the previous block, forming a chronological chain of data called the blockchain. This chain is a database of all the records compiled into the digital ledger.

Once a block is added to the chain, it cannot be changed and is secured with cryptography. It is the blockchain network’s responsibility to validate each block, and consequently the chain, as transactions happen

Blockchain At Work in Real-Life Examples

You may ask, “What’s the point in learning all these and why should I care about blockchain technology?”. Well, the fact that you are now reading about it means it is a relevant part of your career.

A couple of examples of fields where blockchain technology can be used are the following:

• Cryptocurrency
• Gaming
• Supply chain management
• Secure storage of data online
• Domain names

You will learn more about them as you continue learning about blockchain technology.

Is Blockchain Decentralizing the Internet?

What does it mean to decentralize the Internet? Simply put, it means millions of nodes (or devices) that store information link together in an open network where no single entity can own, control, or even kill. It ensures the availability of a public resource that can’t be controlled by a handful of companies or governments.

This is a promising idea, especially if you hope for the preservation of human freedom and creativity while virtually living on the World Wide Web.

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QUIZ

1. Which of the following is not a main element of a block?
2. Data
3. Hash
4. Bitcoin
5. Hash of the previous block
6. Once it reaches its data storage capacity, a block links to the previous block, forming a random chain of data called the blockchain.
7. True
8. False
9. Who is responsible for keeping the blockchain system secure?
10. A government agency
11. Business organizations
12. Every member of the blockchain network