The Blockchain technology has become a regular news item with the emergence of cryptocurrencies like Bitcoin. Now, this technology is disrupting almost all markets, changing the way we do our day to day business. Yes, the blockchain technology is changing our world.
Let’s decode the latest buzz word – The Blockchain Technology – in this post. Thank you for the excellent feedback on our earlier articles in this series – on Artificial Intelligence, Internet of Things (IoT), and Automation. Feel free to post your feedback on this article in the comment section at the post-bottom.
Comparing Blockchain to an Excel Sheet
Imagine a Microsoft Excel Sheet file in your laptop with details of some transactions you made. You can call it a ledger.
Now, imagine that your Excel Sheet file is copied to hundreds of your friends’ computers, connected to each other forming a network. The ledger in your laptop has become a distributed ledger.
Then imagine that this network of computers is designed with a technology to regularly update this Excel Sheet, whenever you or your friends update the ledger.
You now have a basic understanding of the blockchain!
What is a blockchain?
In simple terms, blockchain is a digital ledger.
Wondering what is a ledger?
Ledger is a book containing accounts to which debits and credits are posted from books of original entry.
A blockchain is a digitized, decentralized, public ledger. So simple, right?
Defenition of Blockchain
The main chain (black) consists of the longest series of blocks from the genesis block (green) to the current block. Orphan blocks (purple) exist outside of the main chain.
The blockchain is an incorruptible digital ledger of transactions that can be programmed to record virtually everything of value.
Each list of record in a blockchain is called block.
So a blockchain is a continuously growing list of records called blocks, which are linked and secured.
Who invented blockchain technology?
Blockchain Technology was invented by Satoshi Nakamoto in 2008 for use in the cryptocurrency bitcoin, as its public transaction ledger. Satoshi Nakamoto’s aim in creating the decentralized Bitcoin ledger—the blockchain—was to allow users to control their own money so that no third party, not even the government, would be able to access or monitor it.
The creator of Bitcoin, Satoshi, disappeared back in 2011, leaving behind open source software that the users of Bitcoin could update and improve.