Become Blockchain Smart Under 5 Minutes (NO Fluffy BS)
Blockchain the technology that is changing the world from governing a nation to the way you publish posts on your blog.
In this article, you will learn what blockchain is through definition. Don’t worry it isn’t the boring definition that they teach you in high school. ;-)
You will explore what blockchain is and will be able to understand blockchain clearly enough to help others understand after you are done with this article.
So, let’s get our hands dirty by defining Blockchain in layman’s term, first. You tell this to anyone who doesn’t want to or need to understand blockchain in technical terms.
Blockchain (In Layman’s Term) — It is a shared record keeping system. All the users of this record keeping system have a copy of the data in this system. But this record keeping system only grows and is secured so that other users in the blockchain network cannot use your data even though they have a copy of it. The blockchain network can be updated with a new record only and only if all the parties who are involved in the data (which is being added) agree to it.
Yes, that’s simply it. It is the definition of blockchain in layman’s term.
Now, let’s get to the technical definition of the blockchain.
Blockchain (Technical Definition) — is a peer-to-peer, distributed ledger that is append-only, immutable (extremely hard to change), cryptographically-secure, and updateable via consensus or agreement among peers.
So let’s discuss the first technical term in the technical definition. “Peer-to-peer”
Peer-to-peer — In a peer to peer network, all the users of the network communicate with each other directly. Which removes the need for a central authority. Let’s use Bitcoin as an example to clarify this further.
So, when you send me bitcoin (it is just an example, please don’t send me any bitcoin), a transaction occurs in the peer-to-peer (blockchain) network. For this transaction, only communication between you and me occurs.
No one else is involved in this transaction and it is going to be updated to the blockchain. All of this happened without any involvement of any third party such as a bank.
Now, let’s move on to the word “Distributed Ledger”
Distributed Ledger — It just simply means that all the peers in the peer-to-peer network have a copy of the whole ledger. That is simply everyone having a copy of the whole data on the blockchain network.
Let’s go through the next word then, “Append-only”
Append-only — This property of blockchain allows users of the network to only add data to it. Which has to happen in a time-order sequential order. It disables (makes it extremely hard) the users or outsiders of the network to delete any data from the blockchain.
Well, it is possible to change the data for rare cases by gaining 51% of the power on Blockchain network. These rare cases are handled separately as they require a special technical solution. However, you don’t have to worry because for practical purposes ledger (data) on can’t be changed, which makes it immutable.
Oh, you are going to love this feature of the blockchain. It is the word after “Append-only” in the definition. The word is “Cryptographically-secure.”
Cryptographically-secure — The ledger (data) on blockchain network is locked with cryptography. So, no one can tamper with your ledger (data) on the blockchain network. Misusing your data (like some internet giants do) is completely out of the question. Your data on blockchain is completely secured. ;-)
Thank you, for bearing with me all this long. But now you will learn the means of the last word in the definition. It is “Updateable via Consensus.” Trust me, this is the last one.
Updateable via Consensus — Blockchain itself is secured because of cryptography. But what makes it even more secure and robust is this property. This is what makes blockchain decentralized. So, that it can function for the users without any involvement from a third party (who tampers with your data).
An update on blockchain can only be made only if it gets validated and meets all the criteria which have been set in the blockchain network. And also gets approved through consensus by the users (peers) of the blockchain network. This consensus happens with the help of consensus algorithm. It is just to make sure that all the parties are in an agreement with the data being added to the network.
That’s it. No more definitions for you in the article. Thank you for reading the article with patience. Now, you should have a clear understanding of the blockchain and can also explain to others about it.
Please clap on this article if it has helped you to understand a bit about blockchain. And please leave a comment and state your feedback. If you even prefer other formats of content over articles please let me know. ;-)
