Blockchain Basis
Table of Content
What is a blockchain? Its origin
How secure is blockchain?
Blockchain VS Bitcoin
Advantages and disadvantages of blockchain
How Blockchain works
What is a blockchain?
A blockchain is a distributed ledger or database that is shared among the nodes of a computer. Blockchains are best known for their crucial role in cryptocurrency system such as Bitcoin for maintaining a secure and decentralized record of transaction. A blockchain grantees the fidelity and security of a record of data and generates trust without a trusted third party.
Blockchain is made up of consecutive “blocks” which stores an accounting of relevant transaction time, amount and addresses involved in transactions. Each data set is linked to the one before it using cryptographic algorithm too verify and create a time-stamped hash(signature) of the data. Blockchain are also know as distributed ledger technology(DLT)
Origin of blockchain
Blockchain technology was first outlined in 1991 by Stuart Haber and Scott Stornetta who wanted to implement a system where document timestamps could not be tampered with. From the invention of bitcoin, blockchain has exploded via creation of various cryptocurrencies, decentralized fianance(DeFi) applicatons, non-fungible tokens(NFTs) and Smart contracts.
Questions are popping up in your mind is How secure Is blockchain? is blockchain bitcoin? Keep reading to find out.
How secure is blockchain?
Firstly, blockchain is decentralized. Oh! Yes! It is. In the sense that, it allows the data held in a database to be spread out among several network nodes at various locations. This does not only create redundancy but also maintain the fidelity of the data stored in it. For an alteration to occur a blockchain 51% or more nodes are required which makes it almost impossible for fraud to occur.
Blockchain begins with new blocks which are stored linearly and chronologically. This means that, they are always added to the end of the blockchain. After a block has been added to the end of a blockchain it is difficult to alter the contents of the block unless majority has reached a consensus. That is why each block has its own hash.
A blockchain is secure also because a person has their security keys which they secure themselves. There is private and public key. All these security measures make blockchain secure.
blockchain are immutable. That is, when a data is entered on a blockchain it irreversible.
Blockchain use consensus such as “prove of work” (POW) and “prove of stake” (POS) to prevent double spending and bad actors.
Is blockchain bitcoin?
As earlier stated in this article, blockchain technology was first outlined in 1991 by stuart Haber and W Scott Stornetta, two researchers who wanted to implement a system where document timestamps could not be tampered with this was not possible. Almost two decades later, bitcoin was lunch in January2009, which is blockchain first real-world application.
Bitcoin protocol is built on a blockchain. In a research paper introducing digital currency, bitcoin pseudonymous creator, Samatoshi Nakamoto referred to it as “a new electronic cash system that’s full peer-peer, with no trusted third party.
Blockchain is the shoulder on which bitcoin is built. Bitcoin use blockchain as a means of transparency.
Therefore, From the explained information above, blockchain is secure. There is a symbiotic relationship between blockchain and bitcoin.
Advantages and Disadvantages of Blockchain.
There are several advantages and disadvantages of blockchain but few will be highlighted below.
Advantages of blockchain
1. Data Integrity: Blockchain technologies are designed in such a way that any block or even a transaction that adds to the chain cannot be edited, which ultimately provides a very high range of security.
2. Verifiable: Blockchain technology is used to store information in a decentralized manner so everyone can verify the correctness of the information by using zero-knowledge proof through which one party proves the correctness of data to another party without revealing anything about data.
3. It is immutable: data cannot be tampered with in blockchain technology due to its decentralized structure. Any changes will reflect in all nodes so one cannot do fraud.
Disadvantages of blockchain
1. Cost: Each crypto transaction demands high energy. The possibility of this issue to be resolved is minimal even with the advancement in technology.
2. Time consuming: To add the next block in the chain miners need to compute nonce values many times. Hence the need to speed up for industrial purposes.
3. Scalabilty: This is one of the biggest drawbacks of block chain as it cannot be scaled due to the fixed size of the block for storage.
How Blockchain works
Blocks form a chain of data as an asset moves from place to place or ownership changes hands. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks.fter it
These blocks form a chain of data as an asset moves from place to place or ownership changes hands. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks.
Those transactions show the movement of an asset that can be tangible (a product) or intangible (intellectual). The data block can record the information of your choice: who, what, when, where, how much and even the condition — such as the temperature of a food shipment.Each block is connected to the ones before and after it
These blocks form a chain of data as an asset moves from place to place or ownership changes hands. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks.
Conclusion
Blockchain is the way forward though it’s presence have not been acknowledge as it should which is the drive for this article
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