Blockchain technology (sometimes also called distributed ledger technology) is gaining attention day by day. The story of blockchain started with the first cryptocurrency called Bitcoin. The idea behind blockchain technology described in 1991 by a group of researchers.
What is blockchain?
A blockchain is a chain of blocks that contains data. It’s incredibly popular nowadays. If you’ve been investing or pursuing cryptocurrency for the past ten years, you may be familiar with the record-keeping technology behind blockchain and bitcoin.
“Blocks” on the blockchain are made up of digital pieces of information. Specifically, they have three parts:
- Blocks store data or information about who is participating in transactions.
- Blocks store data or information about transactions like the time, and dollar amount of the most recent purchase from Amazon (NOTE: This Amazon example is just an example; Amazon retail does not work on a blockchain concept).
- Blocks store data that distinguishes them from other blocks using a unique code called “hash”.
Blockchain vs. Bitcoin
The main motto of blockchain is to allow digital information to be recorded and distributed, but not edited. But the Bitcoin protocol is built on the blockchain. In a research paper introducing the digital currency, Bitcoin’s pseudonymous creator Satoshi Nakamoto referred to it as “a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” Blockchain is a distributed database that secures the data, record and verifies any type of transaction. Learn More.