Have you heard of Bitcoin? If you have, you may have heard of blockchain. Bitcoin and blockchain are not the same thing though. Bitcoin does use the blockchain technology. When there is a mention of blockchain, the name Satoshi Nakamoto comes up but this person is still a mystery to this day. Is this a real person or an imaginary person? Who knows? What we do know is blockchain technology is here to stay.

What is blockchain exactly?

In its simplest form, it’s a way to securely store records of data that are immutable. Once the data has been stored in blocks, it cannot be changed. Hence, it is useful for cryptocurrency, smart contracts, financial services, video games, and many other uses.

How does a blockchain work?

You can think of a blockchain as a ledger that is shared with many people and not just one entity. It is like having the data stored on millions of computers so hackers can’t tamper with the data. Another analogy is having a Google spreadsheet that is accessible by anyone on the Internet. Since the information is distributed, you don’t need to pass the documents back and forth so you can keep track of the versions. The blockchain is distributed and cryptographically stored so the data is immutable and can’t be tampered with. If anyone wants to verify the data, they can because the data is transparent.

Blockchain is a decentralized system

Being a decentralized system means that there is not one entity that stores the data. A hacker cannot just go to the centralized entity to steal the data.

Blockchain is transparent

The transparency stems from the concept that every transaction has a public address. Although the person’s identity is hidden, their public address is transparent.

Blockchain is immutable

Once something has been entered into the blockchain, it cannot be changed. It is immutable. The transaction is fixed and reliable since it cannot be changed.

Tim Miller

Tim has always been obsessed with computers his whole life. After working for 25 years in the computer and electronics field, he now enjoys writing about computers to help others. Most of his time is spent in front of his computer or other technology to continue to learn more. He likes to try new things and keep up with the latest industry trends so he can share them with others.

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