Easy Way To Understand Blockchain In The World

What is Blockchain?

Blockchain is a immutable (Which can not be changed) Distributed (Each Person Contain the Copy) Ledger ( a set of record which is stored time to time.)

Why Blockchain is Immutable?

Block is created for the purpose to remove the duplication, false record and criminals from changing the data entering in the blockchain.

Why Blockchain is Distributed?

Blockchain is created distributed because, if there is single authority who saves your data and stores it. Now the central authority has the complete control over your record or data.

If a central authority refuses to give you, your own personal data to you. What you can do? you can do nothing except getting blackmailed or paying him his desired amount of money.

That's why blockchain is created as a distributed or decentralized to avoid such cases.

Example:
Take an example of a bank, he is the central authority and keeps all your record of transactions. If you have to pay your hard earn money to someone they are the main authority to approve your transactions. Suppose, you want to transfer any amount to your friend because he said to you that he is stuck somewhere and need some money.

But, When you were trying to transfer the money, bank says we don't except that area, our link is down, or we will take this fee from you and transfer that amount to your friend. You can't do anything except, accepting all the rules and regulations of the bank to transfer the money.

For removing this hurdle, blockchain is distributed and decentralized to overcome the central authority and to help you make your work done without using any third person or organizations or without paying any heavy charges.

How Blockchain Works?

There are different ways in which blockchain works, but the reason blockchain get famous was a Bitcoin. A digital money or cryptocurrency that removes all the hurdle of the middleman or any organization and saves us from heavy charges.

With blockchain there is no central authority, it all works on nodes ( set of computers or peoples )working from all over the world to help you complete your transactions.

But the question is how?

Blockchain stores all the record of transactions from around the world and each person or node on the network also stores the record of same transactions in his database. Each time when a transaction occurs or updated each node saves the record in his ledger.

But what if some nodes were not working or that time not available when a transaction occurs?

Answer is, when a new record or transaction takes place on the network the whole network stores the data, and the node or person who was not available that time sync the complete data ( Blocks that were not entered in his ledger) from the network.

What if someone changes the data?

In blockchain no one can change the data because there is a consensus ( set of peoples or nodes to approve the transactions) to approve the transactions. Suppose, if a hacker or a person tried to hack or change the block from the network what will happened.

Before he was changing and uploading the fake block on the network, a bunch of more blocks were already created on the blockchain. When he uploads his tempered block on the network, the consensus will refuse that record because it don't have any record of the blocks that were before or after that records.

When a New block created it always have the hash of the previous block (transaction record).

If you want to learn More About Blockchain, or if you have any question i am here to help.

Prepared Written & Posted By
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