Trying to understand Blockchain and the technology it involves requires a lot of information to be understood. Here we have put together some details and information that everyone needs to know about blockchain. After compiling some useful information to assist in your understanding. And here’s the thing after reading through this blog, you will gain knowledge and will understand at least the basics, if not the details for those that want more.
The blockchain is a digital ledger for economic transactions that is not corruptible. Basically it is a digital bookkeeper.
Understand blockchain with Key definitions?
Blocks = a continuously growing list of records. Blockchain = a continuously growing list of records, called blocks, which are linking and secure with the use of cryptography. Cryptography = the science or study of the techniques of secret writing, especially code and cipher systems, methods, and the like. Cryptocurrency = A digital or virtual currency that uses cryptography for security. Bitcoin = A digital or virtual currency that uses peer-to-peer technology to facilitate instant payments. A type of Cryptocurrency. Decentralized = the process of distributing or dispersing functions, powers, people or things away from a central location or authority. Node = a computer intersects with the blockchain network using a program that does the operation of verifying and communicating the transactions.
Need to Understand Blockchain:
Think of it as an enlarged spreadsheet that is global and no single authority will control.
It actually keeps a running balance of who sent how many sets of coins/tokens/information and to whom.
Also tracks what the balance of every account is for coins & cryptocurrency.
Computers store all the information.
Thousands of people across the globe maintain the Blockchain.
Places like Stakebase, SupremeCrypX, MyEtherWallet, MetaMask, Exodus, send each transaction. Think of these as a type of bank account.
When you go to view your Cryptocurrency Balances on any of these places the information you see is data on the blockchain. It is not in any one personal system.
Understand Blockchain as a decentralized system. It brings everyone to the highest degree of accountability.
Elimination of corrupted transactions, including those that were just plain missed.
Risk of errors are reduced from either machine-caused or human-caused. And more so the databases are more reliable removing the potential of corrupt or broken databases.
Ending transactions or exchanges that were in error. It will require the consent of all parties involved.
The blockchain guarantees the transaction is accurate and valid by recording it on both a main register as well as on a connected distributed network of registers. These are connecting through a secure validation protocol.
Blockchain = Internet 3.0. (Evolution of the Internet – better – safer – truth).
The blockchain is the brainchild of a group of people or at least an unknown person the public refers to as Satoshi Nakamoto. As an unquestionable but ingenious invention it is continuously evolving into something greater. One main question almost every single person unfamiliar with all this cryptocurrency talk is asking “What is Blockchain?”.
The database is always up to date. It is also accessible because the digital information on blockchain is allowing it to be in distribution, but without copies occurring. Hence, blockchain technology created the backbone of a new type of secure internet.
Originally devised for the digital currency, Bitcoin, the tech community is now finding new and potential uses for the technology. Overall, it helps us to understand this new technology, how it will help us be safer and more secure, and finally, how best to utilize it.
Bitcoin is receiving references as “digital gold” due to recent proof of Bitcoin and the creation of blockchain. Which is perfect moniker as it is proving continuously to be just that. To date, the total value of the currency is exceeding $350 billion in the US and growing. As it continues to grow and blockchains create other types of digital values there is no stopping it.
In order to use Blockchain, you do not need to fully understand it.
Here’s the thing there is no need for you to understand fully how blockchain works before you can use it. Think of it like your upgraded new phone or laptop you can learn as you use it. Even the internet is constantly changing in different ways and no one is teaching others how to earn a bachelors degree before they can use it. However it is to your own benefit to have a basic knowledge of this new technology which in turn helps you to understand why it is life changing.
A distributed database – let us explain the blockchain details even more:
In keeping it simple picture a spreadsheet that you share thousands of times across a vast network of computers. Then realize that whenever an item of data receives an update, it is secure and receives validation of the truth. That this network has the design to regularly update this spreadsheet. Now if you understand all of this to this point you now have the ability to process the rest of the benefits and functions of blockchain. This is just a basic understanding and we aren’t expecting you to become an expert, but to just feel more comfortable when hearing these different words and terminology. Especially if there are discussions occurring near you and you want to participate with more than just nodding your head. More benefits and bits of further information:
The Information on the database is always reconciling and validating while held on a blockchain.
This blockchain database easily verifiable and very public because it isn’t stored in any single location.
Hackers are unable to break in and corrupt the information because there is no version in any central location.
While millions of computers simultaneously host this database, anyone has access to it via the internet.
The end result is ultimate Security and Transparency. Truth.
Blockchain Details: Strength and Robustness
The technology for Blockchain is similar to the internet in that it has a built-in robustness. With storing the blocks of information that are clones throughout its network the blockchain:
Is unable to have any Single person or company controlling it.
Does not have any single point of failure.
Prevents the occurrences of corruption and embezzlements.
Blockchain details from the history of its Invention/Creation:
It is amazing that in 2008, Bitcoin was first invented. Since that time, the Bitcoin blockchain has operated without significant disruption. (To date, any of the problems associated with Bitcoin have been due to hacking or mismanagement. In other words, these problems come from bad intention and human error, not flaws in the underlying concepts.)
The internet itself has proven to be durable for well over 40 years. Because of this track record it means the blockchain technology will be strong. And as it continues to develop and deploy for all uses and solutions for the Global Community we all live and work in.
Blockchain details on being Transparent and Incorruptible
The blockchain network lives in a state of constant consensus. Therefore, it is one constant consensus that automatically checks in with itself every ten minutes. This is a kind of self-auditing ecosystem of a digital value. The network reconciles every transaction that happens within ten-minute intervals. As a result, there are two important items to understand:
Transparency – the public data is within the network as a whole.
No one is able to corrupt it. It would require a huge amount of computing power to override the entire network and change any unit of information on the blockchain.Something that is virtually impossible and becoming a larger and larger barrier constantly.*
*In theory, this could be possible. In practice, it’s unlikely to happen. Hence, taking control of the system to capture Bitcoins, for instance, would also have the effect of destroying their value.
Blockchain details: A network of nodes
A network of computing “nodes” make up the blockchain.
Working together, they create a powerful second-level network. Which results in a completely different vision for how the internet can function.
Nodes and their role in the first blockchain example: bitcoin.
Every node is a boss of the blockchain. It joins the network voluntarily. However, each one has an incentive for being an active part of the network. There is a chance to win Bitcoins.
As the internet was once just a way to share “emails” and information; and grew into massive commerce, jobs, and revolutionized industry. Hence, as a result of blockchain it is already happening again; evolving to the next level of technology based on decentralized solutions and “truth”.
There are an every growing Bitcoin-like cryptocurrencies (exchangeable value tokens) already available. In addition, there is a full range of other potential adaptations of the original blockchain concept that are currently active, or in development. Because there are literally no barriers the uses and solutions will be a part of our everyday lives. Both in the immediate and ever advancing future.
Blockchain details: The idea of decentralization
The blockchain is a decentralizing technology, cutting out middlemen as it is originally create.
Anything that happens within the blockchain is a function of the network as a whole. Hence, some important implications are now realizing this:
By creating a new way to verify transactions aspects of traditional commerce could become unnecessary.
Cryptocurrency and ICO/Token trades become almost simultaneous on the blockchain. Realizing a Global economy of trade operating 24/7/365 with no market opening or closing. Global.
Vital record keeping, like a land registry, is now fully public.
A global network of computers uses blockchain technology to jointly manage the database that records the recorded and structured transactions. Making information up-to-date and available at all times.
No Company or Person manages the blockchain. Therefore, this encourages honesty. We are just beginning to look into all the amazing possibilities this collaboration will make possible.
Blockchain details: Who will use the blockchain?
Keep in mind you do not need to understand about the blockchain for it to be useful in your life. Like computers they are enhancing everything around us with or without our knowledge of them and how they function.
Many companies are currently battening down the hatches to prevent outside forces from entering their networks. One way they are doing this is through multi-factor security. At our company we all have a login with password. But we also now have a secondary step to prove we are humans and not computers. We are now using tokens that we must touch to activate our network on our specific computer. We are also no longer able to log into more than 1 computer at a time. Securing our computers even further.
Currently, finance offers the strongest use cases for the technology. International remittances, for instance. In 2015 the World Bank estimates that there over $430 billion US in money transfers.
Jobs and Careers are abundant in the blockchain. At the moment there is a high demand for blockchain developers. Please understand, this is not going to slow down. Therefore, implications for evolving into the blockchain is relevant for virtually everything.
Consequently, the blockchain potentially cuts out the middleman for all types of transactions. Hence the reason new methods for generating and being part of creating new monetary gains are higher than ever.
Getting Yourself a Trustworthy Wallet
Access to the financial sector and use of blockchain cryptocurrencies creates accessibility. And for the general public with the invention of “wallet” applications. People use wallets to buy things with Bitcoin. They are also able to store and access it along with other cryptocurrencies. While we each have our preferences, we do not make specific recommendations for anyone, but rather encourage you to do your research.
With the creation of blockchain, it creates a huge need for compliance, identification, and verification. Be sure to look into the reputation of whichever wallet you decide to choose.
Blockchain details: Enhanced security
The security, validation and “Truth” offered by blockchain is revolutionary and necessary for total global solutions in all sectors by storing data across its network.
Especially relevant to today’s needs; the blockchain lacks centralized points of vulnerability that computer hackers can exploit.
And today’s internet has security problems that plagues all of us. We all rely on the “username/password” system to protect our identity and assets online. Blockchain security methods use encryption technology, a way to lock the information. To unlock the information, you need a key. Therefore Internet Security, along with almost all aspects of the Internet, have evolved with blockchain.
Public Keys – Just Additional Security
A “public key” is a user’s address on the blockchain. Your computer gives the key to another computer. This allows the two computers to work in a secure manner together. Going through a network the digital asset is then finally, on record as belonging to that address.
The “private key” is like a password that gives its owner access to everything. When you store your data on the blockchain, no one else will be able to get to it. Unless they have the key.
Methods for safeguarding include:
Paper wallet – easiest for beginners. It is a printout of your cryptocurrency.
Cold Storage Solutions. Such as a Trezor allow you to keep your “Public Key” and contents as you access them from the blockchain. It is here they will be in a safe location with built in and secure recovery points.
Blockchain details: A second-level network
With blockchain technology, the internet (web) benefits with a new layer of functionality.
Hence, users can transact directly with one another — Bitcoin transactions in 2016 averaged over $200,000 US per day. With the added security blockchain brings, new internet businesses are on track to completely disrupt the traditional institutions of finance. Furthermore, if you want to really see how much it has grown (making the 2016 numbers look pathetic) go here for the latest in Market Cap (showing you the hundreds of Billions in trading in Bitcoin)
As published in 2017, Goldman Sachs believes that blockchain technology holds great potential. Especially to optimize clearing and settlements of financial transactions. They claim it could represent global savings of up to $6 Billion per year. Seems like, even Goldman Sachs has underestimated this incredible new world of blockchain.
Now you understand blockchain more…
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