A lot goes on in the world of cryptocurrency that nobody tells you about. If you have wondered what blockchain technology is, who created blockchain and how much blockchain technology can affect your everyday life, then this piece is your match made from heaven.
Who Created Blockchain?
The story begins with blockchain technology, a life-altering discovery by Satoshi Nakamoto, a person or an anonymous group of hackers who used it to create a new form of the digital currency known as bitcoin.
Now I’m getting curious, are you? I’m getting really interested in finding out how this blockchain technology works. A close friend of mine has in recent times, continually yapped on about how amazing bitcoin is and how the blockchain foundation that the new currency is based on is mind-boggling. It sparked my curiosity, probably just as much as it tickles yours right now.
Can Blockchain be the Future of the Internet?
What is Blockchain?
Blockchain is the world’s most trusted crypto company. Wikipedia defines blockchain as a growing list of records that are linked together with cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transactional data.
The idea of blockchain is based on the principle of decentralization, in direct contrast to the centralized system in place today.
Blockchain is a popular topic of discussion on the internet today, with a lot of focus on what blockchain is and what blockchain technology has to offer in this fast-paced internet-driven economy.
One of the most interesting things about blockchain technology is the numerous ways in which you can apply blockchain to effect a change in the society.
If you have a limited understanding of how blockchains work or looking to start a career as a blockchain developer than this is a pretty good place to start, here is blockchain explained.
How do Blockchains Work?
Numerous companies on the internet today advertise their blockchain services to the sea of users looking to learn more about cryptocurrency, but this does not necessarily imply the passing down of any substantial knowledge about certain blockchain projects.
The concept of blockchain is based on three simple principles and they are:
These three features are what make blockchain technology a force to reckon with in the internet world of today.
The blockchain network is described as a decentralized system of transaction that ousts all forms of third-party engagement. This was first noticed when bitcoins entered the market and every information about it was distributed across numerous computer servers on the network instead of a central server.
The first commercial success of this decentralized form of transaction was recorded in file sharing. Software like BitTorrent was able to receive and share files faster than others because it wasn’t extracting all the information it needed from a central server, but every computer on the network contributed to the information pool until everything that was needed was acquired.
A decentralized system such as the one that blockchain provides defies all forms of centralized authority like the model the society currently supports. It gives everyone on the blockchain network equal access to power and information concerning the blocks.
Another huge contributor to blockchain development is Transparency. Every single transaction on the blockchain network is open for everyone on the network to access at any time.
Understanding the blockchain algorithm is a sure way to crack bitcoin and earn a fortune from cryptocurrency. (You can buy/sell Bitcoin here).
It may be quite hard for a blockchain beginner to understand how every transaction on the blockchain can be open for everyone to see and access at any time when in fact, they’re also technically private transactions.
Well, what can I say? In the world of blockchain technology, that is a definite possibility. To understand how blockchain technology works, let’s use Bitcoin as an example.
Everyone who owns a certain amount of bitcoin would need a bitcoin wallet to hold it. When this happens, they have to use the wallet that blockchain or some other crypto networks provide. When you take ownership of a bitcoin network by storing your bitcoin in it, you will be issued a public address that will act as an identification tag for your bitcoin wallet and transactions on the blockchain network.
Now, whenever you make a transaction on the network, it will be recorded against your public address, and anyone who knows your public address can easily look through your transactions by pasting the address on the web.
The blockchain solutions which this feature heralds for human development are endless. The blockchain tech applications are endless and cut across industries including finance, governance, real estate, elections among others. This sort of transparency makes everyone on the blockchain network accountable for their transactions and every transaction which does not add up will simply be expelled from the decentralized system.
The third basic strength of the blockchain network is its Immutability. Blockchain offers a contextual meaning to the word immutability, and here goes; With respect to blockchain, once something has been entered into the decentralized system, it becomes impossible to initiate or force an alteration, especially since there is no centralized authority to petition for a chance to do over.
This feature changes the game on so many levels. And although the Satoshi Yaku… originally created the blockchain technology company to support the growth of the digital currency, Bitcoin, you can now apply blockchain to so many other endeavors in the search for sterling results.
In governance, the integration of blockchain technology into our public service records makes each block a part of the entire network and hence, impossible to tamper with. In a country like Nigeria, where the civil service is the root of corruption, the integration of the blockchain network into the existing system is inevitable.
A few steps further away from governance, we can apply blockchain into our conduct of elections and watch how things change from worse to good. A blockchain solution to the African electoral situation is a seriously needed intervention to help curb the vices that bedevil our elections.
How Does Blockchain really Work?
Like many others before me, the first contact I had with blockchain technology left my curiosity prickled like never before and there was an urge to have blockchain explained, well, here I what I found out about the blockchain network.
An explanation of blockchain brings us to the concept of peer-to-peer connection. A blockchain network is like a ledger where all transactions in the network are recorded. With blockchain solutions, all the information you need is distributed among numerous computer networks, all replacing the existing central server system and taking equal responsibility for the network.
What is a Peer-to-Peer Network?
To fully understand this system, it is imperative to break it down to the smallest bit. A peer in the real sense of the word refers to a contemporary, therefore, if you refer to a peer-to-peer network as a network of contemporaries you will be right.
It is also vital to understand that a peer-to-peer network in the blockchain network does not necessarily mean human contemporaries, but a network of computers all acting as servers for the information on the network. Peer-to-Peer networking is an offshoot of the shared economy, and start-ups such as Airbnb, Lyft are based on the peer-to-peer network to offer services that provide one solution or another to a nagging societal problem.
What Connects Blockchain Technology and Peer-to-Peer Network?
A peer-to-peer network is a crucial part of the blockchain protocol. A peer is usually referred to as a node and the blockchain network is made up of numerous nodes all performing different individual functions but taking on an equal share of information and control over the information distributed on the network.
Usually abbreviated as P2P, the peer-to-peer system offers a blockchain solution to the traditional system of central servers where all the information is stored in a single computer. In a blockchain network, each node is responsible for the transactions carried out while all the information is distributed equally among the nodes.
If you’re like me, then we’re probably asking the same questions at this point, questions that we both want this blockchain guide to answer.
What Effect does a Peer-to-Peer Network have on Blockchain and Bitcoins?
The ultimate effect that a peer-to-peer network has on blockchain and bitcoin technology that the distributed ledger technology used to create the blockchain and bitcoins works just like a peer-to-peer network. With all records of transaction or information distributed among different computers acting as servers.
It is needless to say that blockchain technology will affect human life tremendously in the years to come, and if you’re not already on the train of blockchain solutions then you should get your own blockchain foundation today.