You are sure to have heard about many different types of data and technology based on BlockChain Technology. This technology is becoming more and more popular and is being used for various applications. This trend is growing daily. The question is, what is blockchain technology?
The BLOCKCHAIN is a database technology that can maintain a growing list of data seemingly without limits that is decentralised and founded on the principle that it impossible to tamper with. The data records are combined in small blocks. In order to add these blocks of data to the distributed ledger, which holds all the data and history of the blockchain, the data needs to be verified by atleast 51% of the computers that have access to the netwrok.
For data to be verified and added to the open ledger a method of cryptography is used. This means that a mathematical equation must be solved. Simply put, once that mathematical equation is solved it will receive a stamp and a hash*. To solve the mathematical equation requires computing power. A verified trasnsaction can involve cryptocurrency, smart contracts, records or any type of information.
As mentioned above, this technology can be used to create cryptocurrencies. This technology allows peer to peer transactions without the need of a centralised authority such as a bank. This will allow for transactions, nearly instantly to be achieved with no middle man that takes commission on the transaction. To date there are already hundreds of cryptocurrencies running on this technology with Bitcoin being the most known and accepted.
Blockchain Technology allows for applications to be built ont op of the blockchain and run as decentralised programs. The blockcahin technology is not limited to the original Bitcoin Blockchain. The most popular blockchain used for applications is now the Ethereum Blockchain.
- A hash is the result of a hash function that is used to map data. The hash that is produced within the blockchain identifies the tada contained within.