Blockchain Tutorial for Beginners

A Blockchain, originally blockchain, is a record-keeping technology actually about the digital information (the “block”) stored in a public database (the “chain”).

It is a chain of blocks made up of digital pieces of information or can be defined as the growing list of records linked via cryptography. Each block on the chain contains a cryptographic hash of the previous block, a timestamp, and transaction data.

What is Blockchain?

The blockchain is the fastest growing and the most trusted crypto company helping millions across the globe have a comfortable and safe way to access cryptocurrencies.

It is an open, distributed, decentralized, public ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.

The blockchain is the backbone of the world famous cryptocurrency Bitcoin, a peer to peer electronic cash system and a decentralized network that allows users to make transactions directly without a middleman to manage the exchange of funds.

What is the block?

A block is a file that records some or all of the most recent Bitcoin transactions that have not entered any prior block at yet. It is a container data structure that contains more than 500 transactions on average in the Bitcoin world.

Features of Bitcoin

  • It is a digital asset to exchange goods and services.
  • It is easily portable, divisible, and irreversible.
  • It increases system efficiency.
  • It enables the provision of financial services at a drastically lower cost thus the user gets more power and freedom.

Uses of Bitcoin

  • You can send Bitcoin to anyone, anywhere in the world without worrying about cross border remittance fees as this is the Global Currency.
  • This is globally inclusive and so enables you to transact, save, and your way to a better financial future.
  • You can keep it safe in a non-custodial wallet (like Blockchain’s) means there is no entity that can lock you out of your funds.

A Brief History of Blockchain Technology

In 2008, an unknown person named Satoshi Nakamoto published a whitepaper. Bitcoin: A Peer to Peer Electronic Cash System that described a “purely peer-to-peer version of electronic cash ”.  This paper outlined how to build a digital currency being secure and transparent without any bank or central body.

After one year, he launched Bitcoin as an alternative to the current financial system and centers of power.

In 2010, the world’s first cryptocurrency exchange was set up: the Bitcoin market. And right now, Blockchain has developed over the last decade into one of today’s biggest groundbreaking technologies with the potential to impact every industry from financial to manufacturing and educational institutions.

Importance of Blockchain technology

  1. Smart Contracts
  • Digital Rights
  • Escrow
  • Wagers

2. Digital Currency

  • E-commerce
  • Global Payments
  • Remittance
  • P2P Lending
  • Microfinance

3. Record Keeping

  • Healthcare
  • Title Records
  • Ownership
  • Voting
  • Intellectual Property

4. Securities

  • Equity
  • Private Markets
  • Debt
  • Crowdfunding
  • Derivatives

Top 5 Features of Blockchain

  1. Increased Capacity: Blockchain increases the capacity of the whole network because there are a lot of computers working together and in total offers a high power than a few of the devices where the things are centralized.
  2. Better Security: Blockchain provides secure network by the connection of a number of computers called nodes and these nodes confirm the transaction on the network. There is not even a single chance of shutting down of the system and thus Blockchain has better security.
  3. Trustless exchange:  Using blockchain, two parties are able to make an exchange without the oversight or intermediation of a third party, strongly reducing or even eliminating counterparty risk.
  4. Durability, reliability, and longevity:  Blockchain does not have a central point of failure due to the decentralized network thus better able to withstand malicious attacks.
  5. Transparency and immutability: The changes to public blockchains are viewable publicly thus create transparency. All the transactions are immutable; can’t be altered or deleted.

NOTE: By design, a blockchain is resistant to modification of data, if the data in any block gets recorded at once then it can’t be altered without the alteration of all subsequent blocks which requires a consensus of the network majority.

Also Read:  Top 20 Blockchain Interview Questions and Answers