History of the BlockChain

Everyone is hard about Bitcoin, Cryptocurrencies, or Ethereum, and blockchain is known as the backbone of these cryptocurrencies. Which means, most of the cryptocurrencies are built on the blockchain network concept. The concept of blockchain was initially revealed by the research group in 1991. At the very first beginning, they did a timestamp of the digital documents. With this technique, no one can change or update timestamp digital documents. However, in late 2008, a person named Satoshi Nakamoto published a research paper about this concept. Before that, most of people didn’t knew about the blockchain concept. And now it will use for distributed cloud storage, energy, machine learning, healthcare, digital identity, and smart property.

What is Blockchain

Blockchain is initially built on as a fully distributed network. Which means, the data is spread throughout everywhere and if one server is down, it will not affect for the data. Basically, the data of a fully distributed network is governed by all of the users and there is not a single authority. And also, once the data is entered, no one can alter or change the signal word. Because since the data is spread throughout everywhere as a piece of data, changing or altering the data will be complicated or impossible. 

Please refer to the following image to get an idea about the centralized decentralized and distributed networks.

Blockchain Explained

Blockchain Explained with Example

Without Blockchain 

let’s just assume there are two people as “ person A” and “ person B”. And “ person A “ is going to transfer money to “ person B’’. To transfer money, “person A” must go through a bank or other financial third parties. This process will know as a centralized network and the bank is working as the intermediaries.

With Blockchain 

If we use this process as a fully distributed network, “person A” has to do is use the Blockchain technique. Which means once “person A” is entered relevant information about money transfer to “person B”, the data will be broadcast by the blockchain network.  Due to pieces of data and data reading capability is only having “person B”, data will be secured until “person B” is decrypted. Due to the fully distributed network, there will not be any bank or other financial third parties. With this process, data will be secure and nobody can change the single of data. And especially, the history of transactions and processes are recorded. Therefore, the Blockchain technique will use as a very secure and reliable network.

This example has only two people, but when it comes to the real-world situation, the Blockchain process has millions of users. Therefore, data will broadcast a number of millions of users, and transaction history will record of those users PC or device. So, let’s just assume, if someone is trying to change the data. Then he/she has to go through all of the users’ devices to change the data.

Inside of the Blockchain

The Blockchain works as recorded lists which are cryptographically linked together. And then those linked lists as a data structure. (Please refer to the following image to get an idea about the blockchain linked structure). So, once the data is entered, there is no backward and it will only work forward which means data can not be able to change. When it comes to the blockchain structure, one unit is called as a Block. And in this unit of Block, it will have mainly three parts such as the Data, Hash, and Previous Hash.  The Hash will work as a complicated code of identification of block. And the Data will be anything such as inputs or information. It will include sender, receiver, and amount of coin. 

Blockchain Explained

In the beginning, the hash will have the null amount or it will represent zero. This will also know as Genisis block. And Has will create when someone enters data into Blockchain. So, the next hash will create, based on the Genisis block and this is the process. This means, basically the next block has will be based on the previous block hash or data entered into the genesis block. Due to this process, the data in the Blockchain cannot be able to change. 

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