The word block chain is meant to represent a " LIST OF RECORDS " while the word chain is meant to describe the the linked relationship between the list of records.So imagine a list of records link to another list of records and thats what basically the term BLOCK CHAIN describes; linked list of records .The first known use of blockchain technology was in 1991 by Stewart Haber and Scott Stornetta . As our new World was evolving towards the digital technology , concerns about the accuracy , security and modifiability of digital records were raised. At this time the use of third party stamping services was the only option available . However relying on the time stamping services that could lead to bribes or security breaches was not ideal .This is because it is imperative to maintain integrity of digital records by ensuring they cannot be modified back dated or forward dated.
This brings us to the next question , Why was block chain developed ?
Haber and Stornetta worked on developing a technology that ensured the accuracy , security and modifiability of digital records using computer's and mathematics . They decided to make use of cryptology to achieve desired level of privacy and security for digital record keeping. Cryptography is the study of secured communication's while cryptology is the term used when you study the application of mathematics to cryptography. In 1992 Habert Sanada and Mr bear enhanced the cryptographically based block chain technology by adding the use of HASH and PREVIOUS HASH.
Now let's understand the meaning of hash and previous hash in a simple way .
Imagine a condition where A wants to give a certain Bitcoins (transactions are done with Bitcoins) and B has to give the same amount of Bitcoins to C. Blockchain ensures that the proper amount or equal amount is passed in these linked transactions. Every block in a particular linked transaction has a Hash and a Previous hash which includes same type of code(Hash is used like a fingerprint). Even if the block in the transaction has any minute change, the hash for that block changes and also the code in the previous hash option appears different.
Any computer function that orbitrarily sized data like list of peoples name ,to fix form of data like social security numbers is called a Hash function.
Now the output of the Hash function is fixed form of data which is commonly known as an Hash value , Hash code , Digest or only Hash.
Let's go the next question ,how the block chain will be used now ?
It wasn't until 2008 that the first distributed block chain was created for the use as the underlying technology of Bitcoins a digital currency . It was made by a anonymous person or a group that goes by the pseudonym Satoshi Nakamiyo. However there is a common misconception that the Bitcoin is synonymous with block chain that however is not the case . The block chain facilitates the secure and private transfer of digital currency called Bitcoins as well as post the transactions to a public ledger to maintain data integrity . Right now most financial transactions are facilitated and recorded through the use of private parties such as Banks , Visa , MasterCard and other financial institutions. The block chain foundation allows Bitcoins currency transactions to occur securely and privately . While maintaining the accuracy of the transactions by posting a time stamped unmodifiable record of the transactions to a public ledger without the use of third party instead it uses computers , mathematical algorithms and cryptology to perform this function which allows the Direct connections between the Bitcoins user's by removing the need for third party . Again imagine a list of transactions as a block and each block is being recorded on a public ledger so as blocks of transactions are recorded on a running ledger it creates a chain of Blocks.
Coming to the next question where is the block chain and what does the term public ledger means?
Every transactions between Bitcoins users is processed by a computer that has a Bitcoins processing software called as" Bitcoin client " .
This computer is connected to other computers via and online networks , so imagine a computer with Bitcoins processing software on it connected to a internet which allows the computers to connect to a network of other computers online with Bitcoin processing software . The technical term for each computer that participates in the block chain network is the word" NODE ". So the bock chain network has several nodes or computer's that it's save all the recorded blocks of transactions in the computer.
This is where the word distributed or decentralised ledger comes from. Since every transaction is saved on each node or a computer with Bitcoin client software on the Bitcoin network . The ledger of all Bitcoin transaction is described as distributed ,so if you have a laptop with Bitcoin client software and keep it connected to the network and the Bitcoin network you will have the entire Bitcoins transaction ledger saved on your computer . If your computer breaks it will not affect the ledger beacuse the same ledger is being distributed on several other computers around the world . Also there is an option of private ledger . There is also an option of keeping the data linked transaction in private.
This Article gives you a brief information about the BLOCK CHAIN TECHNOLOGY which is going to play an important role in tech industry .
0 Comments