What is blockchain technology in simple terms and what are its features?

What is blockchain technology in simple terms and what are its features?

What are the blocks? These are blocks of information which follow each other in a strictly defined order. Each block contains data about the previous block, about the next block and other information which we can write there (for example: who owns real estate, who voted for which candidate at the elections, who has how much money in the account, who transferred what, etc., generally any information).

That is, in fact, blockchain is a technology for storing information.

The peculiarity of the technology is that copies of this blockchain are stored on thousands of blockchain servers (or computers) simultaneously. This blockchain cannot be changed, that is, the information stored in the blocks of the blockchain cannot be changed.

If someone, for example, hacks and changes some block on 1 server. Other servers will not accept these changes, and the information in the blockchain will not change. And thousands of servers cannot be hacked at the same time.

When a new block of information is created and written, this block is transmitted simultaneously to all servers in the network. The servers check it according to certain criteria (they are laid down in the blockchain) and approve it. When the block is approved by 51% of the servers, the block is permanently added to the network.

So what we have:

  1. In this technology, there is no single center that can manage the data in this data warehouse. This is called “decentralization”.
  2. This storage technology is resistant to hacking and unauthorized modification of information.

It is these two properties that allowed blockchain technology to become widespread and become the basis for the emergence of an independent digital currency, now called “cryptocurrency.

Creating a cryptocurrency is just one way to use blockchain. This technology can be used to store absolutely any information. But it is the blockchain technology that ensures the reliability and security of cryptocurrencies.

Source: vc.ru

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Written by Prof. Ramus
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