What Is Blockchain? Everything You Should Know About Block Chain – Blockchain is facilitates secure on online transactions. With blockchain user can record transactions across many computers for online transactions. This facilities allow the user to verify and audit transactions.
Definition of Blockchain
Blockchain is technology behind bitcoin which distributed ledger database for record your transactions. With blockchain user can share their transactions. Record of their transaction can distributed by all computers who given by a network. This computer can validate the record transactions.
Blockchain database consist of two kinds. There are transactions and blocks. Blocks save the valid transactions that are hashed and encoded. Block includes the hash of the prior block. Blockchain consist of block and chain. The linked which blocks form a chain. Before block you must process confirms the integrity. Some blockchains make new block every five seconds.
Blockcain is Better Than Bitcoin
Bitcoin is the first cryptocurrency of blockchain. Blockchain has much potential beyond virtual currencies. This technology is a great technology because can gain across financial institutions. In many other area Blockchain include capital markets, record keeping, contracts, settlement, management, payment, trade finance and etc.
How Blockchain Works
Blockchain works when two persons create a transaction. Cryptography keys hold two transactions. After that a new block created from this transaction. Transaction will broadcast for all validate network. Blockchain created permanent record for this transactions. After the record created the transactions of two persons completed.
The Advantages of Blockchain
Lower cost and efficient is first advantage of blockchain. If you use blockchain you will reduce the transaction cost. The efficiency of blockchain make lower risk from the transactions. Blockchain has real time processing. Real time processing has the meaning that blockchain transparent and real time data. Regulation and governance of blockchain make ability to ensure identity of users. To improve the control blockchain make data based concensus. Security, privacy and controls from the blockchain can complete audit trail of all transactions. It’s mean that blockchain has higher data security and encryption. You can use the blockchain to work from home.
Public or Private Blockchain
Do you the different of public and private blockchain? The different is security. In the public blockchain you will receive all the information from the other device. It make the open communication not private communication. The virus from the other device can inside to the block. It is very dangerous. But from the private blockchain you can save your record. Because it is private blockchain you can save your record in the special computer. The dangerous of the virus can reduce with the private blockchain.
Blockchain and Bitcoin
People always discuss about blockchain as bitcoin which make money online. Bitcoin are a digital currency can be used by other currency. This currency like United States Dollar (USD), Chinese Yuan (CNY), Euro (EUR) and the other currency. Blockchain use to keep track the amount of bitcoin as a ledger. The blockchain can keep bitcoin transactions. The file of ledger stored to across world via computers. One of the computers send “node” to the blockchain network and copy this node.
Example of Cases
Ali wants to send bitcoin to Andi. He send a message to network and say the amount of bitcoin in his account by 5 BTC. Andi say the same quantity with Ali in his account. Node in the network will receive this message. The node will apply requested transaction to their copy ledger and update the balance of the account.
The Implication of Blockchain
Blockchain has several different with bank account. If in the bank you will only know your transactions in the blockchain not like this. Everyone can everyone’s else transactions with the blockchain. In Bank you will really trust the bank to help you when you get some problem. But in the bitcoin network no one can help you about something wrong. In the blockchain not need trust for the other. Security in the blockchain use the mathematical function and security code.
If you use blockchain for your transaction you must have wallet. Wallet is the software program to store or check your bitcoin. You can change the currency of your bitcoin with wallet. If you spend bitcoin wallet will protect your transactions. Wallet will bring you private key to spend or receive bitcoin. In each transactions you must store private key. The purpose of the bitcoin will receive the private key too. This private key will pairing and can connect with blockchain. So if someone didn’t have a private key they cannot access the bitcoin.
The system will check the input transactions in the wallet. Verification process has a special record as node. It is not possible to double spend or receive bitcoin. If you do one transaction payment you will spend one transactions with your special amount. You will receive one transaction too when you accept payment for the one transaction.
All the transactions in blockchain is the open transaction. Everyone can access the operation with laptop and internet connection. You must be careful if you send the wrong message for the request transaction. If you do that your bitcoin permanently lost. The network system make you to very careful about your request. Because this system did not create to help someone resolve the problem. Someone cannot help other of they make mistake when send request transaction. One of the mistake again is about private key. If you use the private key over and over you will not pair with the other person. Because this private key is very safe, so to keep this private security secure you must be careful.
Transactions across from node to node with network. If you do 2 transaction use the different node. You send first transaction and the second transaction. The second transaction will not send when the first transaction invalid. So if you want send two transaction you must wait until first transaction already finish. If you not do that your second transaction will lost. This security transaction make the transaction safe.
The bitcoin network order transaction by put many orders into the groups. This group called blocks. Each block contain of one transaction. This is consist of amount and link for transactions. One block is one transaction. Block related into chain. So the whole system called blockchain.