The Blockchain technology is gaining the trust with time. It is becoming the topic of discussion like other common topics are gaining the attention. After going through so many arguments and planning, Blockchain is becoming the part of all kind of industries. And it’s worth talking about the hot topic after knowing all the pros and cons of the term.
Have you ever thought about how businesses perform their functions and how they operate their tasks in the market?
The Blockchain is among the most important catchphrases of the technology right now. But what it is all about? Why is everybody talking about it?
What is Blockchain?
Let’s begin with the beginning. The first and significant application of Blockchain Technology was Bitcoin – released in 2009. Bitcoin is the crypto-currency and Blockchain is the technology that comes under it. Cryptocurrency is a kind of digital coin that is used in Blockchain.
By understanding the working of Blockchain with Bitcoin, it will help us in knowing that how this technology can be used in other real-world cases.
Bitcoin is the vision-reality of a mystifying person or group of people known as Satoshi Nakamoto. Nobody is aware of the identity Nakamoto, but his vision was positioned in the 2009 Whitepaper known as “Bitcoin: A Peer-to-Peer Electronic Cash System.”
A bit about Bitcoin Blockchain
The Blockchain after the Bitcoin is a public record book which has every transaction that is taking place. It cannot be interfered or changed backwardly. According to the advocates of the technology, Bitcoin is secured and much safer than any other system.
Here are few facts about Bitcoin:
- Any central authority does not issue it.
- The limit is present of about 21 million.
- For now, only 17million is in use.
- The identity of the Bitcoin creator Satoshi Nakamoto is still a mystery.
- The first transaction with Bitcoin was done by the programmer – Laszlo Hanyecz, who invested 10,000 Bitcoins on two Papa John’s pizzas in the year 2010.
- Sometimes people use Bitcoin for buying illegal products like drug
What’s the working of Blockchain Technology?
The Bitcoin is “decentralized,” that means there is no central authority to control it.
While Central banks issue traditional coins, but there is no central authority in the case of Bitcoin. Instead, miners – a network of people that maintains the Bitcoin Blockchain.
These “miners” or “nodes” work continuously for solving the complex mathematical problems for making the transactions. These groups are present with their purpose-built computers for making the transaction process in action.
Think lots of people are making the Bitcoin transactions at a time. Each transaction that is originating from the wallet has a “private key.” It is a digital signature and gives the mathematical assurance that the wallet’s owner does the operation.
Signature is for text or data file. It consists of an SHA-256 algorithm which has an almost unique 256-bit (32 bytes) for the text. Mainly signature is made up of unique bits which are known as Cryptographic hash0r ‘digest.’
Now imagine, many transactions are going on at the same time across the world. All these transactions are collectively gathered in a block which is organized by the strict cryptographic rules. Then the block is sent to the Bitcoin network, which is the group of people running high-powered computers. All these computers struggle to confirm the transactions by solving mathematical puzzles.