Blockchain is a decentralised, peer-to-peer distributed, immutable ledger.
Blockchain is a database of transaction records that are distributed, verified, and kept up to date globally by a network of computers. Blockchain records are governed by a vast community rather than a single central organisation, like a bank, and no one person has exclusive control over these records.
Blockchain can be used in various day-to-day operations such as-
- Records of raw material sales and purchases
- Statements of bank accounts
- Tracking medical equipment with Excel sheets
- A straightforward logbook
Understand What is Blockchain – in simple terms
Imagine the blockchain as a simple textbook, thereby-
- Each page refers to a block that is linked to the one before it by a page number.
- If a page or block has been deleted or removed, it is simple to tell.
- The page number makes it simple to arrange the pages/blocks and spot suspicious activities.
Origin of Blockchain
- Way back in 1991, two people W. Scott Stornetta and Stuart Habe introduced the concept of blockchain while introducing digital signatures in documents.
- Later in 2008, an anonymous person or group named “Satoshi Nakamoto” conceived and unveiled the blockchain technology.
- They incorporated the concept of hashing in the blockchain framework to make it secure enough that once saved, no one can alter or remove the data. The Bitcoin cryptocurrency system uses this blockchain design as its fundamental or underlying infrastructure.
How does Blockchain work?
What is a ‘Block’ in Blockchain?
A Block is the smallest unit of blockchain that is divided into two parts
- Block Header
- Block Body
Block header contains –
- Block no.
- Current Block Root Hash
- Previous Block Hash
- nBits or Target Value
Whereas the Block body contains all the transaction records.