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What is Blockchain Technology? A Step-by-Step Guide For Beginners
1 month ago
Topics: Blockchain 101
Is blockchain technology the new internet?
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym Satoshi Nakamoto.
By allowing digital information to be distributed but not copied, blockchains create the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the tech community is now finding other potential uses for the technology.
Bitcoin has been called “digital gold”, and for good reason. To date, the total value of currency is close to $9 billion US. And blockchains can make other types of digital value. Like the internet (or your car), you don’t need to know how the blockchain works to use it. However, having a basic knowledge of this new technology shows why it’s considered revolutionary.
What is Blockchain Technology? A step-by-step guide than anyone can understand
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)
A distributed database
Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.
Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
To go in deeper with the google spreadsheet analogy I would like you to read this piece from a blockchain specialist.
What is Blockchain Technology? A step-by-step guide than anyone can understand
Blockchain as Google Docs
“The traditional way of sharing documents with collaboration is to send a Microsoft Word document to another recipient, and ask them to make revisions to it. The problem with that scenario is that you need to wait until receiving a return copy before you can see or make other changes, because you are locked out of editing it until the other person is done with it. That’s how databases work today. Two owners can’t be messing with the same record at once.That’s how banks maintain money balances and transfers; they briefly lock access (or decrease the balance) while they make a transfer, then update the other side, then re-open access (or update again).
With Google Docs (or Google Sheets), both parties have access to the same document at the same time, and the single version of that document is always visible to both of them. It is like a shared ledger, but it is a shared document. The distributed part comes into play when sharing involves a number of people.
Imagine the number of legal documents that should be used that way. Instead of passing them to each other, losing track of versions, and not being in sync with the other version, why can’t *all* business documents become shared instead of transferred back and forth? So many types of legal contracts would be ideal for that kind of workflow.
You don’t need a blockchain to share documents, but the shared documents analogy is a powerful one.”
William Mougayar, Venture advisor, 4x entrepreneur, marketer, strategist and
blockchain specialist
What is Blockchain Technology? A step-by-step guide than anyone can understand
Durability and robustness
Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of information that are identical across its network, the blockchain cannot:
Be controlled by any single entity.
Has no single point of failure.
Bitcoin was invented in 2008. Since that time, the Bitcoin blockchain has operated without significant disruption. (To date, any of problems associated with Bitcoin have been due to hacking or mismanagement. In other words, these problems come from bad intention and human error, not flaws in the underlying concepts.)
The internet itself has proven to be durable for almost 30 years. It’s a track record that bodes well for blockchain technology as it continues to be developed.
Transparent and incorruptible
The blockchain network lives in a state of consensus, one that automatically checks in with itself every ten minutes. A kind of self-auditing ecosystem of digital value, the network reconciles every transaction that happens in ten minute intervals. Each group of these transactions is referred to as a “block”. Two important properties result from this:
Transparency
data is embedded within network as a whole, by definition it is public.
It cannot be corrupted
altering any unit of information on the blockchain would mean using a huge amount of computing power to override the entire network.
In theory, this could be possible. In practice, it’s unlikely to happen. Taking control of the system to capture Bitcoins, for instance, would also have the effect of destroying their value.
blockgeeks.com/guides/what-is-blockchain-technology-a-ste...
Bancor Protocol Operation, What is Blockchain, Summary 2 of 3. Bancor protocol is a cryptocurrency based on the Ethereum Blockchain using tokens as smart contracts for peer to peer commerce.
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For healthy individuals, “it’s just a matter of preference,” says Alcibiades Rodriguez, professor of neurology at NYU School of Medicine.There is no sleep posture that’s ideal for everyone.Sleep advice sites make a lot of unsupported claims: that sleeping on your right side protects your heart but causes facial wrinkles, that sleeping on your back helps clear the brain of waste products. But there is very little research to suggest that any position is better than another.
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What is Blockchain?
The blockchain is like the tracking tool which helps the users to track the records of the transactions on all the digital currency without any kind of central recording. Every lump is connected to the computer thereby a copy is recorded automatically.
What is Blockchain? 6 Important Use Cases of Blockchain Technology.
In October 2008, Blockchain – a P2P network that provides a decentralised public domain where every transaction is recorded between buyer and seller – was introduced as the underlying technology that powered Bitcoin, a virtual currency system that eschewed the need of a central authority for issuing or verifying cryptocurrency and its associated transactions.
blog.appscrip.com/blockchain-integration-why-industries-n...
Blockchain is a way of storing data or a digital register of transactions, transactions, contracts. All that needs a separate independent record and, if necessary, verification. In the blockroom you can store data on loans issued, property rights, traffic violations, marriages.
Blockchain Technology, What is Blockchain Technology
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This in-depth introduction to DLT will provide a crucial understanding of the basic principles, potential and limitations of blockchain, with a focus on: the history and background of blockchain; how it works; its properties, specifically decentralization, immutability, and transparency; the problems it can solve and those it can’t and; the debate around public and private blockchains.
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Gary Nuttall - Founder, Distlytics
This in-depth introduction to DLT will provide a crucial understanding of the basic principles, potential and limitations of blockchain, with a focus on: the history and background of blockchain; how it works; its properties, specifically decentralization, immutability, and transparency; the problems it can solve and those it can’t and; the debate around public and private blockchains.
Find out more about InsurTech Rising 2017 here: finance.knect365.com/insurtech/
Gary Nuttall - Founder, Distlytics
This in-depth introduction to DLT will provide a crucial understanding of the basic principles, potential and limitations of blockchain, with a focus on: the history and background of blockchain; how it works; its properties, specifically decentralization, immutability, and transparency; the problems it can solve and those it can’t and; the debate around public and private blockchains.
Find out more about InsurTech Rising 2017 here: finance.knect365.com/insurtech/
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Blockchain is a ledger technology that digitally records and distributes data across a network of computers. Specifically, a Distributed Ledger Technology, or a DLT. Visit bit.ly/3hR8BUz
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Blockchain system record information in such a way that it is challenging to hack, change or dodge the system.
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A blockchain is the structure of data that represents a financial ledger entry or a record of a transaction. Each transaction is digitally signed to ensure its authenticity and that no one tampers with it.
A step by step beginners guide to what is blockchain technology. Explore now and learn something new.
A blockchain is a database or a storage that is shared across a network of computers. This holds transactional records and while ensuring security, transparency, and decentralization. Once a record has been added to the chain it is very difficult to change. To ensure all the copies of the database are the same, and working fine the network makes constant checks.
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Blockchain wallets contain the digital currencies and other assets of individuals and are paving the way for the future of transactions.
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