What is Blockchain? This is one of the most talked about terms in the cryptocurrency market. Almost everyone involved in investing knows the term, but not many really understand what blockchain is. In today’s article we will learn together some information about this technology at a basic level!
1 – What is Blockchain?
It is likened to a company’s main accounting book, also known as a ledger. In this book will record all information related to money spent by the company.
Technologically explained, It is a series of blocks containing information. Or you can understand blockchain as a ledger containing information and data related to the field of digital technology.
History of the birth of blockchain
Since 1991 the concept of blockchain has been mentioned by 2 figures W.Scott Stornetta and Stuart Haber. For the original purpose of being used to timestamp documents so that the time cannot be modified in any way.
Until 2008 when inflation hit the US, the world economy was hit hard. In this context, bitcoin was created by an anonymous programmer named Satoshi Nakamoto with the aim of proving a more inflation-reducing cryptocurrency than paper money at the time.
Bitcoin is developed on the basis of blockchain technology. At this time, the concept of blockchain began to become more known to the world.
2 – Blockchain used for what?
It is used to store information that is linked together in blocks and managed by all participants in the system. This is called decentralized distributed data management.
Usually in companies, organizations use a server server to store all data on that server. This is called centralized data management.
Going back to blockchain, this technology allows for decentralized data storage, i.e. data will be stored distributed in many places. In addition, the data is securely encrypted.
Once this system is activated, the data on the system cannot be changed. In the blockchain network system, there are many independent nodes that are capable of validating information in the system.
Information is only added when all members participating in the system agree. As such, you can see that it is a highly secure system for data.
3 – Applications in practice
The first application of blockchain to mention is bitcoin in particular and the cryptocurrency market in general.
In addition, it is also applied by big companies like google, facebook, apple, alibaba, toyota, ford, metlife, etc.
Not to mention it also has specific applications in specific industries and agriculture such as fisheries, real estate, commerce, banking and insurance, etc.