Blockchain is the digital ledger technology upon which bitcoin and many other cryptocurrencies are based. It’s a growing network of interconnected databases- the most famous of which is bitcoin’s blockchain. Essentially, a blockchain is an ever-growing list of data blocks that are linked and secured by strong cryptography. Each block contains a list of records called transactions. This combination makes for an efficient and reliable way to maintain a continuously growing list of data.
The first known block was created in pre-historic Greece, where the word ‘block’ originally derived from. It was used to store valuables like gold and jewelry. Many ancient civilizations used blocks as well to store important information. In fact, the earliest recorded use of blocks dates back 2,700 years to the ancient Babylonian civilization. Apparently, storing information in blocks was so prevalent that it became part of society’s infrastructure- which is pretty impressive when you consider how old many of these blocks are!
Maintaining a blockchain requires a group of trusted computers that constantly update their data. The most famous blockchain in today’s society is bitcoin’s, which runs on the bitcoin blockchain. This is why everyone talks about blockchains when they talk about cryptocurrencies. Essentially, blockchains allow for digital currencies like bitcoin to exist safely and reliably without any harmful tampering from malicious actors.
Every new block on a blockchain consists of data sets like transactions or text messages. However, each block also includes encrypted information about previous blocks in the chain. This is known as a chain of blocks, and it ensures no one can manipulate the original information or change past events without knowing the key. It also allows members of the chain to see where every single one of the original blocks started from so they can find any missing pieces or corrupted data sets. This system protects all current and future data sets on the blockchain from corruption or loss.
Like many other cutting-edge technologies, blockchain has vast potential for both good and evil uses. With its secure method of storing information, it could revolutionize many industries where trust is imperative- such as banking or supply chain management. On the other hand, users may become disconnected from reality if they don’t understand how blockchain works behind popular cryptocurrencies like bitcoin. No matter what you intend to use it for, blockchain technology has made its way into our daily lives!
