Blockchain is a concept that has been talked about a lot on social media lately and it has been likened to the next generation of “The next big things”. So what is blockchain and how does it apply to our lives?
Blockchain is a hot topic on global forums today. This is the technology behind cryptocurrencies like Bitcoin. Some are worried that the Bitcoin bubble could collapse at any moment and affect trading markets around the world. However, there are also many people who think that the technology behind it is a breakthrough and will quickly become a strong foundation in the future.
So what exactly is Blockchain? What areas of life can it be applied to and why is it of such interest?
All blocks contain information about the initialization time and are associated with the previous block.
According to the definition from Wikipedia and many currency forums , “Blockchain technology (blockchain) – is a ledger (originally called block chain ) that records the balance and history of all accounts participating in your chain of transactions”.
Each block containing information in the blockchain system is often referred to as a “block” . All blocks contain information about the creation time and are linked to the previous block, along with a timecode and transaction data. Once the data is accepted by the network, there is no way to change it. Therefore, it can be said that Blockchain was born to prevent fraud and change data in transactions.
You may have figured out what Blockchain is by now, but to better understand, you need to pay attention to some of the following issues:
The Bitcoin network sorts transactions by grouping them into groups called blocks , each containing a certain number of transactions and a link to the previous block. Over time, the transactions increase, the blocks also increase, they are linked together and organized into chains, from which the system is formed called Blockchain.
Over time, as transactions increase, so do blocks.
According to experts, Blockchain is a combination of 3 types of technology:
( Note: A peer-to-peer network, also known as a peer-to-peer network, is a computer network in which the network’s operation is mainly based on the computing power and bandwidth of the computers. participating machines rather than focusing on a small number of central servers like conventional networks – According to Wikipedia).
From a business perspective, blockchain can be seen as an accounting ledger or a data structure containing assets, recording the asset history of everyone in the peer-to-peer network.
From a technical perspective, blockchain is a way to store the history of asset transactions.
From a social perspective, blockchain helps to establish trust by consensus rules among members in a decentralized system.
Blockchain technology allows for transactions of value without the need for trust or proof of trust. Imagine you and I will make a bet, I bet 100 USD that Liverpool will win the upcoming Champions League final and you think Liverpool will lose. Previously, this bet could be made in two ways: trust each other (meaning that as long as there is a match result, I or you will voluntarily share the money for the winner) or form a contract between the two parties (this contract has additional legal binding, but if one party does not comply, the other party has to pay additional legal costs to carry out the court proceedings).
Blockchain operations.
Neither trust nor contract are optimal solutions. Therefore, blockchain technology was born to provide us with a 3rd transaction option, both safe and cheap.
Blockchain allows to write a few lines of code to create a program that can run on this platform. Then you and I will deposit our 100 USD into this program. The program will keep 200 USD and check the final result of the C1 cup after it ends. When determining the winning team, the losing team, it will automatically transfer to the winner the full amount of the bet. Each party can check the logical contract, and since it is running on the blockchain, it cannot be changed or stopped. Of course, few people take the trouble to write an application just to bet 100 USD, but imagine with larger transactions such as selling a house, buying a car, etc., the payment method via blockchain becomes convenient and how safe.
The most known and discussed application of blockchain technology is Bitcoin. A digital currency that can be used to exchange products and services, like the US dollar (USD), Euro (EUR) and many other countries’ currencies.
In addition to Bitcoin, blockchain can also be applied to smart contracts, sharing economy, expanding capital markets, governance, supply chain audits, etc.