Blockchain Simplified in 2022?

Blockchain Demystified 

The Blockchain’s meaning is often shrouded in confusion. The original Blockchain is an open-source technology, meaning that is available for all to use. The system acts as a substitute for the traditional bank/ intermediary. The ecosystem’s collaborative verification replaces the middleman/third-parties, providing unmatched peer-to-peer traceability, security, and speed.

The purpose of Blockchain is to enable the recording and distribution of digital data without the ability to alter it. In simple terms, the system allows you move cryptocurrency and record transactions, with no ability to change or edit the data. All transactions are recorded on a digital ledger that is duplicated across the network of computer systems that make up the Blockchain. Each block on the chain contains a number of transactions, and whenever a new transaction occurs on the Blockchain, a record of that transaction is recorded on the digital ledger.  

A Blockchain serves as the foundation for ledgers, or transaction records that cannot be changed, deleted, or destroyed. This makes it very secure!

What Is the Blockchain? / Blockchain Explained

A Blockchain can be compared to a database, particularly a distributed database. It stores and records data. However, the sorts of data it saves, how it stores it, who has access to it, and the fact that data on a Blockchain cannot be changed or deleted are the main differences between Blockchain and a regular database. Unlike a regular database, Bitcoin transactions are recorded in “blocks” rather than in random files. Before being chained onto the previous block and added to the long chain of transactions, these blocks can only hold a certain number of transactions (hence the term “Blockchain”). This gives a chronological history of transactions, similar to a ledger, from the first transaction in the first block to the last transaction in the most recent block. These blocks are stored in the Blockchain in such a way that we can see a comprehensive record of Bitcoin transactions.

Can you trust it?

On any given Blockchain exchange, advanced Blockchain technology is used. Most people can understand the Blockchain definition, but the code is a different story. You may wonder if you can trust this technology. Blockchain technology provides decentralized security and trust in a variety of ways. To begin with, changing the contents of a block after it has been added to the end of the Blockchain is extremely difficult unless a majority of the network agrees to do so think of it as literal chains between blocks and how hard it would be to break the chain and change where the chain is connected to after breaking. This is because each block has its own hash, as well as the hash of the preceding block and the time stamp defined before which means it cannot be broken or changed. Hash codes are created by converting digital data into a string of numbers and characters using a mathematical algorithm. The hash code will change if the data is altered in any manner.

Can The Blockchain Get Hacked?

Banks have been hacked in the past, so it is not an unreasonable thought. Assume, for example, that a hacker who also maintains a Blockchain node intends to change the Blockchain and steal Bitcoin from everyone else. Their single copy would no longer match the copy of everyone else if they changed it. When everyone compares their copies, they’ll see that this one stick out, and the hacker’s version of the chain will be thrown out as you would be if you tried to buy something with an expired credit card.

To reach such an agreement, the hacker would have to control and change 51 percent or more of the Blockchain copies at the same time, ensuring that their new copy becomes the majority copy and thus the agreed-upon chain. Because the time stamps and hash codes would be different today, an attack like this would cost a lot of money and resources because they’d have to rewrite all of the blocks. 

All of this together makes it hard, costly, and not worth the effort for hackers. The main source of hacking is when hackers get access to your cryptocurrency wallet.