5 Steps Guide to understand Blockchain Technology

The blockchain is slowly by slowly hitting the mainstream and hence you shouldn’t be left behind. There are several projects that have been launched since the bitcoin hype in 2013. Money was invested, some lost, scams hit the board and speculation and hack come by and there were several problems in the entire Cryptocurrency world. If you have just heard about Blockchain, then I am here to make you better understand the technology behind it.

What is Blockchain Technology?

rnThe whole idea of Blockchain technology was the work of Satoshi Nakamoto. Since the launch of the first cryptocurrency in 2013, it has evolved into something greater than what people would think. In simple terms, Blockchain is a straight digital ledger of economic transactions. The transactions can be programmed to record financial transactions and also everything else of value. There are three technologies that are combined to create a Blockchain. They include Private Key cryptography, a distributed network with a shared ledger and lastly an incentive to service the network’s transactions, security and record-keeping.

How does it work?

rnStarting from where we left above, assume that there are two people who wish to transact online and each of them has something we call private key whose main purpose is to secure digital identity reference. Although this is there to guarantee the security of the transactions, there’s one thing you are supposed to bear in mind.

Systems of records

After the above keys are combined a super useful form of digital interactions emerge. This process begins when one of the people takes their keys and make an announcement of its kind which will be attached to the other person’s public key. After this, a digital signature timestamp and relevant information are broadcasted to all nodes in the network.

Network servicing protocols

If you take the case of a tree falling and several cameras are installed to record it fall, everyone will be convinced that the tree actually fell. However, a realist may challenge the evidence arguing why there were millions of cameras waiting to record the tree fall. This can be done through ‘’crypto mining’’.

Mining

The challenge involves mining for open and public Blockchain such as Bitcoin. This process is built off a unique approach to an ancient question of economics. In this case, by offering your own interest to help serve the public interest, you will be rewarded. The goal of this process is to eliminate the chance of one bitcoin being used in more than one transaction. To learn more about it visit, Ernesto.Net