The word ‘blockchain’ has become the buzz of the era with the increasing popularity of Bitcoin. Although the concept of the technology has been around since the late 90’s, its potential went rather unrecognized until Bitcoin made use of it. The blockchain we see today was deviced in 2008 by Satoshi Nakamoto. It is also believed that Satoshi Nakamoto can be a group of people. His origins or any information about Satoshi Nakamoto stays unknown to this date.
As interesting as it may sound, most individuals struggle to understand the concept of the blockchain technology. This article is aimed at explaining the basic concept of what a block chain is and how it works, so let’s get down to business.
What is a blockchain?
At a very basic level, think of the blockckain as a chain of blocks linked in a chronological order, where each block has the ability to store information. This chain is not owned by any ‘one’ person or company (decentralized ), because an exact copy of this chain is present in every personal computer that is in the blockchain network (distributed). The blockchain network is a peer to peer network where any computer in the network can connect to another computer in the network directly without having a middleman. If an individual joins the network right at this moment, he too will get an exact copy of the chain as of now. This feature makes the blockchain decentralizedas well as distributed.
The blockchain system enables anyone in the network to add valid blocks of data into the chain but changing any of the data inside a block is almost impossible thanks to the use of cryptography and other protection mechanisms. That is why the blockchain is known as an append only chain.