Blockchain Technology

Basic Blockchain Knowledge for beginners

What is blockchain?

Blockchain is chain of block that store information to make it impossible to modify or cheat the system.

It also can be called a digital transaction book that is distributed across a network of blockchain computer systems.

A decentralized database that is managed by multiple participants is called Distributed Ledger Technology (DLT).

Blockchain is a distributed ledger technology in which transactions are recorded with a fixed cryptographic signature, called a hash.

This means that when a block in a circuit is replaced, it is damaged immediately. If hackers want to disrupt the blockchain system, they must modify every block in the chain of all distributed versions of the chain.

By adding blocks to the chain, blockchains like Bitcoin and Ethereum are constantly evolving, which greatly increases the security of the ledger.

Blockchain looks complicated, it sure can be, but the basic concept is actually very simple. Blockchain is a type of database. To understand blockchain, we first need to understand what a database actually is.

Information in the database is usually arranged in the form of tables to facilitate the search and filtering of certain information. What is the difference between people using spreadsheets instead of databases to store information?

Spreadsheets are designed for one person or a small group of people and are used to store and access a limited amount of information. In contrast, databases are designed to store large amounts of information, and any number of users can quickly and easily access, filter, and manipulate this information.

Large databases do this by storing data on servers consisting of powerful computers. These servers can be built with thousands of computers to have the processing power and storage capacity. While a spreadsheet or database can be accessed by any number of people, it is usually owned by a company and maintained by a dedicated person who has complete control over how it works.

So, what is the difference between blockchain and database?

Storage structure

The main difference between a regular database and a blockchain is the way the data is structured. Blockchain collects information in the form of groups (also called blocks) and these groups contain a collection of information. Blocks have a specific storage capacity and are connected to pre-filled blocks when filled, creating a data chain, called a “block chain”.

A database builds its data in tables, and a blockchain builds its data in blocks that are linked together. This is what makes all blockchain databases, but not all databases blockchain. Even with decentralized use, the system inherently creates an immutable chronology of data. When a block is filled, it attaches to the rock and becomes part of that timeline. Each block in the circuit is given an accurate timestamp when added to the circuit.

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