Are you wondering what is blockchain technology? Blockchain technology is undeniably an incredible invention. Since its invention in 2008, blockchain technology has gradually evolved into something greater. However, the primary question that almost every individual is asking out there is: What is Blockchain Technology? This technology has created the foundation of a whole new type of internet since it allows digital information to be distributed but not copied.
For some people, blockchain technology and Bitcoin mean the same thing. However, you need to understand that Bitcoin is a digital currency that is part of the larger bitcoin technology.
The good thing about this technology is that you don’t need to understand how it works to use it. But, having a basic understanding of blockchain technology will help you understand why it is widely considered as revolutionary.
This comprehensive blockchain technology guide explains what blockchain technology is and how it came to be. Read on to learn more about blockchain technology.
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What Is Blockchain Technology?
In simple terms, blockchain technology is an incorruptible digital ledger of verifiable economic transactions that can easily be programmed to record financial transactions plus almost anything of value.
Blockchain technology offers a secure and reliable way for untrusted parties to reach a consensus on common digital history. This common digital history is critical since digital assets and transactions can easily be duplicated or faked. Blockchain technology solves this problem without the need of using an intermediary.
The “blocks” in blockchain technology store information about transactions. They also store information about who is participating in the transactions and unique information that differentiates them from the other blocks.
A Brief History of Blockchain Technology
Blockchain technology existed as a computer science concept long before it found its way into the world of cryptocurrency. The concepts of data structures and cryptography form the basis for this technology. The earliest form of blockchain was the hash tree which is also known as the Merkle Tree.
The data structure run by verifying and handling data between various computer systems. In a typical peer-to-peer computer network, validating data was critical to make sure that nothing was changed during the transfer. Data verification and validation also ensured that false data wasn’t sent over the network.
In the early ’90s, the Merkle tree became the basis for “secured chain of blocks” which led to the creation of the first blockchain. In 2008, Satoshi Nakamoto conceptualized the idea of a distributed blockchain. The new blockchain would be managed autonomously without any central authority.
The blockchain would also contain a secure history of all exchanges, verify each transaction, and also use a peer-to-peer network to time stamp each exchange.
Why is Data Decentralization So Essential in Blockchain Technology?
If you are a blockchain enthusiast, you will hear a lot about the decentralization aspect of this technology. In fact, this is what makes it so appealing to many people out there. Decentralization of blockchain means that the technology is immune to tampering, censorship, and corruption.
Since it utilizes the peer-to-peer computer network, copies of the ledger are usually stored in various locations. Unless you manage to track down every one of them, it is almost impossible to destroy it. This guide briefly answers the question; “what is blockchain technology” and also outlines the basis of it.
It is also good to note that there are a lot of users, developers, and enthusiasts out there who truly believe that blockchain technology is the future. Most of them are working hard to see this technology succeed. We hope this answers your question on what is blockchain technology. You are welcome to read the latest news about it and cryptocurrencies here.