Blockchain is a system of recording information. It is a list of records, called blocks that are linked using a method called cryptography, a type of encryption. Blockchain uses decentralization and cryptographic hashing to protect the history of any digital asset from alterations and enable transparency.
Blockchain is a peer-to-peer managed system that was invented by a person (or group of people) using the name Satoshi Nakamoto in 2008 to serve as the public transaction ledger to the now popular cryptocurrency Bitcoin. The identity of Satoshi Nakamoto remains unknown to date.
How does Blockchain technology works?
Every chain consists of multiple blocks. Each block has three elements:
- Data in the block.
- A 32-bit whole number called a nonce. It is automatically generated whenever a block is created.
- Block header hash which is a 256-bit number united to the nonce.
Each block in the chain contains a timestamp, transaction data, and a cryptography hash of the previous block. Blocks contain the hash of the previous block, which forms a chain and with each additional block reinforcing the ones before it. Blockchain, therefore is resistant to changes in their data once recorded.
Blockchain is a revolutionary and promising technology that helps to reduce risk and fraud and brings transparency in a scalable way.