Best Explanation Of Blockchain, You may have heard a lot about this term recently, (Blockchain) and its unlimited uses and this is undoubtedly due to its high reliability and the difficulty in modifying its content in addition to the almost impossibility of hacking it. Let us get to know the Blockchain closely.
It is a real revolution in the world of financial trading, and not only financial trading, but it goes beyond that to be a comprehensive and reliable technology to create an integrated technological system like the Internet system that we are accustomed to.
Blockchain
It is a database distributed across the network on a large number of computers, and when a record is sent to this database, it is difficult to change, and to ensure that all copies of the database are compatible and identical, the network performs continuous checks, and the blockchain is used in a way Essential for digital currencies, especially bitcoin.
How does a blockchain work
Recordset into Block and Chain.
Records are grouped together in blocks, where a record is any information to be added to the database, a transaction for example so that these blocks or blocks of records are added to the chain one by one. What is the mechanism of the blockchain work?
How to embed a transaction into the blockchain
Business process registration
Let's take an example Mr. Ahmed wants to sell two of his coins to Mr. Samer for $100. The record of this transaction contains all its details including the digital signature of both parties.
Check the deal and get confirmation
The transaction is checked by the network, where the computers on the network are called nodes to check all the details of the transaction and make sure that it is valid.
Adding the transaction to the block
The process of entering the records that have obtained approval of their validity into the block begins, as each block contains a unique special number called (Hash), and it also carries the number of the previous block in the chain.
Add to series
When the block declares that it is ready, a check is made to verify that the previous block number in it matches the real number of the previous block, and when it is confirmed, it is added to the chain sequentially.
Why is changing the content of the blockchain so difficult?
The unique numbers that each block holds ensure the security of the block's information. The process of creating a special unique number (hash) for each block is mainly dependent on the content of the block and the content of the records within it by performing a mathematical operation that takes numerical information and generates a text string of letters and numbers.
First, no matter how large the original files are, the block number generation process will always generate a number of the same length.
Second: Any change in the original file will be offset by a change in the block number, so if someone decides to delete a comma from a large text containing 587,287 words, this will change the block number completely.
Third: Changing the block number (hash) simply breaks the chain, as we mentioned, each block carries its number and the number of the previous chain, so the next block carries the old number of the modified block and therefore the number of the next block will be modified, which will lead to modifying the number of the block after the following, so no hacker in the world will be able to perform all the math for all the blocks; Because it requires superior computing capabilities and therefore penetration will be impossible.
How is trust in the blockchain ensured?
Unlike traditional networks, blockchain computers do not have any central computer, as it is a decentralized distributed network. In such networks, there is no manager to add only trusted employees to his network, and trusting one of the computers needs other methods, given that the Bitcoin network is an open network for everyone. And there are anonymous members, there are no ways to know whether they are trustworthy, so the following is followed:
Proof of Action
To add a block to the chain, the nodes must prove that it has been executed, through an increasingly difficult computer puzzle. This method is called big computing power mining, but here members receive prizes for their work, such as bitcoins.
Proof by Share of Ownership
Participants buy tokens that allow them to enter the network, and the more tokens they have, the higher their potential.
Blockchain uses
There are many useful uses for the Blockchain, and we can say that it is the best option for all your information or documents that should never be modified. Here are some examples:
Cryptocurrencies
Blockchain is the basis of Bitcoin and other digital currencies.
Healthcare
Using blockchain technology, patients' medical history can be stored securely and under the control of patients.
Voting
Blockchain can be used to conduct secure elections while ensuring that they are free from fraud.
Ownership records
Files of land, real estate, and other ownerships can be kept, which helps prove ownership in politically unstable areas.
When did blockchain technology start?
Blockchain is an entirely new software technology that can fundamentally change the current world as we know it, by redefining how we deal with information and transfer values. It first appeared in 2009 in a research paper presented by Satoshi Nakamoto, whose purpose was Basically the creation of the digital currency Bitcoin (Bitcoin). It is a database distributed across the network on a large number of computers, and when a record is sent to this base, it is difficult to modify it, and to ensure that all copies of the database are compatible and identical, the network performs continuous checks,
Where is the Blockchain System used?
This technology enables us to transfer digital money peer-to-peer without having to go through banks. This technology reduces the need for an intermediary in many traditional sectors, such as banking, insurance, entertainment, government, and others. In fact, many people understand that this technology is limited to its use in digital currencies only.
But this technology goes beyond the idea of digital currencies, as the Blockchain system can be used in many things, so it can be predicted that the BlockChain technology can be applied as an alternative system to the idea of the Internet in general, and through BlockChain technology, it is possible to build applications that perform any task or It performs any function, just like smartphone applications or computer programs, the only difference is that it works on a different system. In fact, these are not theoretical ideas, but on the ground, there are applications for blockchain technology other than digital currencies.
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