What is Blockchain?
On the outer surface layer, Blockchain may seem complicated but the core principles are quite simple. Think of the Blockchain as a database. This database stores data, information in a structured table format to make the life of searching and access to the information easier. Other uses of database will allow for searching, filtering for specific queries.
An academic way of looking at Blockchain would be to think of it as a shared fixed ledger, that makes the process of recording, transactions and tracking assets in a business network. Assets come in two forms they are either tangible or intangible. Tangible assets can take the form of a (house, cash, land, property, etc.). On the other hand, intangible assets represent (intellectual property, patents, copyrights, branding). With the help of blockchain anything of value can be tracked, traded on a Blockchain network. This reduces the risk of cutting corners which are related to costs for all individuals.
Why is Blockchain important?
The business world relies its competitive edge on the information it receives. The sooner this information is at the disposal of the inquiring party albeit being accurate the better the chances it will have for the party needing the information. This makes Blockchain ideal candidate for delivering that information. Since this provides immediate, completely transparent information stored on an unbending ledger that can be accessed only by permissioned network members.
A blockchain network can track anything from orders, payments, accounts, production, and much more. Since Blockchain provides a single view of the truth, the user can see all details of the end-to-end transaction, this will give a greater confidence, new efficiencies and opportunities for the users.
Blocks of Blockchain is used to store not only monetary data of the transaction but also about other types of transactions. A list of come companies that already used and have incorporated Blockchain in their operating cycles are Pfizer, Siemens, Unilever, among other companies.
Blockchain spreads its operation across a network of computers. Blockchain allows for cryptocurrencies such as Bitcoin and other digital forms of currency to operate without the need for a central authority. This action not only reduces risk but also eradicates many processes such as processing and the transaction fee.
How does the information get stored?
One key element that makes blockchain differ from a typical storage is the way the data is structured. A blockchain as the name implies it uses set of blocks to collect information together in groups. The blocks carry a certain capability, when its written into. The block will get chained into the previous data known as “Blockchain”. Newer information that gets added to the block will get compiled into a newly formed block that will then get added to the chain once filled. In other words, Blockchain structures its data into chunk of blocks that are chained together. This chained information is share in a decentralized manner.
Why are Blackchins Decentralized?
To get a better understanding of Blockchain, it’s important to look at it in terms of Bitcoin. Bitcoins need a collection of computers to store it into its Blockchain. As previously stated Bitcoin uses computers to compute its processes. These computers are all not under the same roof. Each computer or group of computers are operated by an individual or group of individuals.
The concept of a Decentralized Blockchain network is that no one has to know or to trust anyone else. Each member of the network contains a copy of the same data in a form of distributed ledger. If the information on the ledger is altered or mismatched information in any way, this will result to getting rejected by majority of the member networks.
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