What is Blockchain?

Blockchain is the buzzword that you keep hearing nowadays. In the technology era bitcoin and blockchain get heights.Lots of the industries and the government are also adopting blockchain in some countries.

Blockchain is simply a chain of blocks. In simple terms, we can say that a block is digital information which is stored in the chain means in the public database.Database is an arranged collection of data.We can store the data or digital information in Blockchain but we can not edit it.

Blocks store data about transactions like the time, date, amount of your purchase, and any other information that you want to store.But as Blockchain is safe, Blocks does not store your actual data mean blocks does not store any identifying information meanwhile blocks store unique digital signature just like a username.

There is no chance of duplication of data because Blocks store data that separate them from other blocks. Hash is a unique code that every block stores and makes them unique.Hashes are encrypted codes generated by extraordinary algorithms(set of instructions).

So basically Blockchain is an architecture that allows users to make transactions and blockchain creates a secure, efficient, unchangeable and  private record of those transactions.

Blockchain vs Bitcoin

Generally people might be confused with blockchain and bitcoin. Bitcoin was firstly introduced by Satoshi Nakamoto in 2008. A Paper was published by Nakamoto  called “Bitcoin: A Peer-To-Peer Electronic Cash System”. The first bitcoin transaction occurred between Satoshi and Hal Finney on  January 12th, 2009.

Bitcoin is an electronic cryptocurrency which is used for online payment without need of third-party interaction or we can say that Bitcoin is digital currency.

Blockchain is the platform to make every transaction transparent and permanent. Blockchain is a distributed ledger that is open for everyone who connected with this Network. We can say that the initial step of blockchain technology is bitcoin.

Blockchain is not just about coins and tokens. Blockchain technology is more than cryptocurrency.  Blockchain is a platform that use Digital currency.

Blockchain versioning

Evolution of blockchain technology and versioning from v1 to v4.

Blockchain 1.0: Currency

Cryptocurrencies are the implementation of blockchain 1.0. Cryptocurrency is a medium of exchange, created and stored electronically in the blockchain, using encryption technique to control the creation of money and to verify the transfer of funds. Example of Cryptocurrencies are

1. Bitcoin
2. Ethereum 
3. Ripple

Bitcoin

Ethereum 

Ripple

Blockchain 2.0: Smart Contracts

Smart Contracts are the latest and effective concept of blockchain technology. Smart contracts are pre written logic or small computer programs. They are self-ruling computer programs that execute automatically. When some conditions are fulfilled smart contracts are triggered automatically.No one can tamper with smart contracts using this technology is one of the biggest advantages of Blockchain.

Traditional Contract

Smart Contract

Blockchain 3.0: DApps

DApp stands for decentralized application, it means no centralization. Blockchain doesn't save any data in a central location.Same as a traditional app,  DApp's frontend developed using any programming language and it use API to make calls to its Backend.

Blockchain 4.0: Industrial usage

Blockchain plays an important role in the industry as the industrial revolution needs the highest degree of trust and privacy. Blockchain is useful in  Supply chain management, financial transactions,  IoT data collection, condition-based payments, health and asset management, etc. Blockchain version 4 is nothing but creating Blockchain version 3 applicable, usable in real-life business.

Hope you understand What is Blockchain? It is very vast technology, but aim of this article is to provide you some basic fundamental of Blockchain technology with easy language.There is many more in the sea of Blockchain.Get in touch with codebes for more articles with easy learning.Thank you and don't forget to share with your friends.