Blockchain

Blockchain

Blockchain is a system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer-to-peer network. Blockchain was implemented in 2008 behind an anonymous person under the name Satoshi Nakamoto.

In 1982 David Chaum doctoral candidate at the University of California at Berkeley (California) outlined a blockchain database in his dissertation, “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups." Decades later in 2008 on an online discussion forum, a related research paper appeared. The paper written by Satoshi Nakamoto was titled “Bitcoin: A Peer-to-Peer Electronic Cash System” and a year later the first blockchain was implemented.

The primary benefit of using blockchain is to record transactions, but benefits also include transparency, time savings, cost savings, and tighter security. Security is an essential part of the blockchain system as it reduces the risks of tampering by malicious entities.

How Blockchain Works:

Blockchain stores data in linked blocks, and once added, it cannot be altered without network consensus. As more blocks of data are added, the chain grows. Each block has a unique hash, a timestamped list of valid transactions, and the previous block’s hash. This linking prevents alterations or insertions, making the blockchain theoretically tamperproof .

Features of Blockchain:

Decentralization: Control is distributed among multiple multiple participants, allowing for a distributed network rather then a central entity in control.

Immutability: This feature allows for there to be no changes or alterations, preventing unauthorized changes and ensuring security.

Consensus: Rules are established where participants cannot make changes unless authorized and validated by multiple participants. This feature ensures transparency within blockchain.