What is Blockchain Technology | Explain in details

Over the past, many people must have heard about Bitcoin. Some people don’t know that Bitcoin is based on Blockchain technology. Here we discuss in detail the blockchain which clears all your doubt regards Bitcoin.

The first work on a blockchain was described in the year 1991 by Stuart Haber and W. Scott Stornetta.

What Is Blockchain:

Blockchain is like a special digital record-keeping system that keeps track of information in a very secure and organized way. Imagine having a notebook where you write down all the things you buy and sell, and your friends also have their own notebooks.

Now, instead of just one person keeping track, imagine that everyone in the whole world has a copy of the same notebook. Whenever someone buys or sells something, they write it down in their notebook, and everyone else can see it too.

But here’s the clever part: all the notebooks are connected and updated at the same time, so everyone has the same information. This makes it very hard for anyone to cheat or change things because everyone would notice.

Each page of the notebook is called a “block,” and when a page is full, it gets added to the other pages in a chain, forming a “blockchain.” Each block contains a bunch of transactions or information, like who bought what and when.

This special system is very secure because the information in the blocks is protected by something called cryptography, which is like a secret code that only the right people can understand. This makes it very hard for anyone to tamper with or hack the information.

Blockchain is not just used for money or transactions. It can be used for all kinds of things, like keeping track of property ownership, voting in elections, or even recording information in important documents.

In simple words, blockchain is a super safe and shared way of keeping track of information, where everyone has the same copy and it’s really hard to change anything without everyone knowing.

In the world, the blockchain is using about a 10-20% acceptance rate of financial services. 

Blockchain-based project:

1. Cryptocurrencies: Bitcoin and other cryptocurrencies are blockchain-based projects. They use blockchain technology to create a decentralized and secure digital currency system.
2. Smart Contracts: Blockchain platforms like Ethereum enable the creation and execution of smart contracts. Smart contracts are self-executing contracts with predefined rules and conditions, and they automatically execute once those conditions are met.
3. Supply Chain Management: Blockchain can be used to track and authenticate products throughout the supply chain. Each step of the process, from manufacturing to distribution, can be recorded on the blockchain, ensuring transparency and reducing fraud.
4. Decentralized Applications (DApps): DApps are applications that run on blockchain platforms. They leverage the decentralized and secure nature of blockchain to offer various services, such as decentralized finance (DeFi), gaming, or social media.
5. Identity Management: Blockchain can provide a secure and tamper-proof way to manage digital identities. It allows individuals to have control over their personal information and selectively share it with authorized parties.
6. Voting Systems: Blockchain can be used to create transparent and verifiable voting systems. Each vote is recorded on the blockchain, ensuring the integrity and accuracy of the voting process.

Mining In Bitcoin

The process in which the transaction is verified by someone called miners and they get a reward for solving mathematical puzzles.

Why Blockchain become popular

Secure

Cryptocurrency is stored in a public key cryptography system. This means that there is a special code, like a secret lock, that keeps the cryptocurrency safe. Only the owner of the wallet has the code to unlock and send the cryptocurrency.

The code used in cryptocurrency is very strong, making it nearly impossible to break. This makes cryptocurrency more secure compared to the security of banks or traditional money systems.

Decentralized

After the crisis in 2009, Satoshi Nakamoto’s main goal in creating Bitcoin was to make it independent from any government or authority. Unlike other currencies, Bitcoin is not governed by any authority. In traditional transactions, money goes through banks, which charge high fees and take a long time to reach the recipient. However, with Bitcoin, there is no central control. It is a decentralized network where all the people who use it are involved.

Anonymous

Banks know a lot of personal information about their clients, like their name, address, phone number, and credit history. But with Bitcoin, things work differently. Transactions and accounts are not linked to a person’s real identity. Instead, you receive Bitcoins on Bitcoin addresses, which are long chains of random-looking characters.
Some people prefer this privacy because they don’t want their financial activities to be controlled or tracked by any authority. While there are concerns about activities like terrorism, hacking, drug supply, and other illegal things, it’s important to remember that Bitcoin itself is just a technology, and how people use it determines whether it’s for legal or illegal purposes.

Transparent

Every Bitcoin transaction is recorded in the Blockchain. This means that if you have a Bitcoin wallet and you make a transaction, anyone can see how much Bitcoin is in your wallet by looking at the Blockchain ledger. However, it’s also possible to check all the transaction details of a specific Bitcoin address publicly.

For people who want to keep their transactions private, this can be a benefit. They have the advantage of staying anonymous with their transactions.

Fast and Globally

Bitcoin payments are very fast in the network and get confirmed within a few minutes. This means you can send Bitcoin to your neighbor or someone on the other side of the world quickly. In contrast, regular bank transfers can take several days to complete.

Charges

Bitcoin transfer fees are very low compared to transactions that go through a bank. When you use a bank, they often charge high fees, and it can take a long time for the money to reach the recipient. However, with Bitcoin, the fees for transferring are minimal.

 cryptocurrencies can’t be recalled

Top Blockchain-based startup:

• Settlemint 
• Coinfirm
• Odem
• Limechain
• Colendi
• Solve.Care
• Bankera
• Neufund
• Hara 
• DACSEE 
• Bananacoin
•  Bluzelle
• Electrify
•  Tripio
• Yojee 

How to learn Blockchain: 

1. Start with the basics: Think of blockchain as a special kind of digital book that keeps track of transactions, like buying and selling things. Each transaction is like a special note in the book.
2. Read and watch resources: Look for books or videos that explain blockchain. They can help you understand how it works and why it’s important.
3. Ask questions: If you don’t understand something, don’t be afraid to ask! Talk to grown-ups or teachers who know about blockchain. They can explain things and help you learn.
4. Join blockchain clubs: Look for clubs or groups at school or in your community that focus on blockchain. You can meet other people who are learning too and share your knowledge.
5. Create your own blockchain: Get creative and make your own blockchain project!
6. Stay curious: Keep exploring and learning about blockchain. Look for new information and follow the latest news to see how blockchain is being used in the real world.

how much does a blockchain developer earn?

Blockchain developers are highly skilled and in-demand professionals who earn a good amount of money for their work. The exact amount they earn can vary based on factors like their experience, the company they work for, and the projects they are involved in. On average, though, a lot of money can be earned by blockchain developers each year.

CryptoCurrencyJobs.co: $135,000 per year.

PayScale: $110,000 per year.

Scope of Blockchain Technology in the Future

In the future, blockchain technology will be used in many cool ways. It will help make things safer and better. For example, it will make it hard for bad people to steal money or cheat in online transactions. It will also track products from where they are made to where they are sold, so we know they are real and safe. And even voting will become more fair and secure with blockchain. It’s like a special tool that will make our world more trustworthy and awesome!