Are you someone curious to know about Blockchain? If yes, this is a must-read for you.
Blockchain is a technology that allows digital data to be distributed among the masses rather than being copied. It means that every information shared will only have one owner but multiple users. This technology is behind digital currencies like Bitcoin, Ethereum and other cryptocurrencies.
Blockchain is called so because it is a chain of blocks. These blocks contain records of new transactions. Whenever a block is completed with information, it is added to the chain. Blockchain technology is an excellent way to keep your data safe and indestructible. It can be used for any kind of product that falls under database management or storing records.
Blockchain technology was started in 2008 but came into use only after Bitcoin was launched in 2009. Here are a few basic terms every newbie who wants to learn Blockchain technology must know:
- Distributed Ledger technology
Distributed Ledger Technology (DLT) is a digital system used for recording the transaction details of different assets in multiple places at one time. Blockchain is a type of distributed ledger. DLT uses multiple and independent nodes/computers to record and share digital transactions.
It is a type of communication method used for protecting the information alongside communicating it from one channel to another. Encrypting of transactions is done by using cyphers also known as codes.
A token is a digital asset used for digital transactions in Blockchain technology. There are different types of tokens like usage tokens, native tokens, or built-in tokens. A token can also be a digital representation popularly known as a tokenised asset.
- Network Nodes
A node is a basic essence of Blockchain technology. It is a device in the blockchain network used for a variety of tasks like recording, storing and transmission of digital information. Bitcoin and every other cryptocurrency have their own nodes.
- Consensus Protocol
This is a set of protocols that decide how the cyphers/nodes achieve agreement and decide upon whether to validate or cancel a transaction in a blockchain network.