We connect An ever-increasing list of blocks named records using cryptography and we call it a blockchain. Cryptography is the practice and study of techniques for secure communication in the presence of third parties called adversaries. Simply, a blockchain is a specific kind of database.
A Merkle tree (a tree that contains leaf nodes as a cryptographic hash of a data block) demonstrates a block-chain where each block contains a cryptographic hash of the previous block. This marks it different from a typical database.
But what is a database?
A database is a collection of information that is stored virtually on a computer system. In databases, we design and structure information or huge data in a way that is simple to read, and basically, we do it by using tables and queries, and forms. Many COTCs is up there in the market which help us create a meaningful database, some of the COTCs are Microsoft Access, Apache database, etc. the way database structures data it becomes easy to make meaningful consequences from the data. For example, we have a school, then there are students in a school, whose information we store somewhere, the set of information is so huge if we look at it collectively, so we convert the raw data into a database using some software and manipulate information in a better way.
Now there are different ways to create databases.
Typical ways are of using tables and queries as representation for information, but there is another way also which uses Merkle Tree to contain data and that's something called Block-Chain.
A blockchain is specific in data. use and manipulation of data decide the structure of the database. A blockchain has many blocks which contain information.
These blocks are a hierarchy to some previous blocks and become parents to some other blocks.
And this way a Merkle tree forms, containing information in the form of a flowchart.
We create the main block with its time-stamp, and then corresponding data we fill into the block. And then the other data continues the block-chain to be in relation to the first block. And this way, every block has its own data and acts as a database independently and furthers the database. We mark every block with a timestamp and determine the time stamp.
But since the chart can be long, decentralization comes into act.
Bitcoin is one of the biggest databases using blockchains. Let's see the blockchain of Bitcoin and understand.
Bitcoin is a cryptocurrency. some unknown group of persons invented bitcoin in 2008 under the name Satoshi Nakamoto.
Assume a school has thousands of students and each student has got 20 information which further has 5 information, and we classify these students into different sections and 4 sections comprise one class and there are 20 classes. Such a big database to handle, so if we designate a computer for a student, then, this way we create a complete hierarchy of a student. But these students belong to different sections of different classes. So, looking at the huge compilation of data it's better to use a flowchart in the sense of the Merkle tree instead of the tables database. And it will be good to use an individually controlled system for a single student which is kept under one roof designated for a class divided into rows of sections.
Now, the huge database has been decentralized according to the classes and sections. And this is the decentralization of data.
The same goes for bitcoins. In bitcoin, they designate a person's coin with a single computer system, called a node. In a blockchain, each node has a full record of the data that we store on the blockchain. For Bitcoin, every node is the entire history of all transactions. If a node gets an error then all transactions are at risk but it can use other nodes in the link as references to correct itself easily. This way, no one node can change the information stored in it. The history of transactions in each node that make up Bitcoin's blockchain is not changeable.
Thus, bitcoin uses blockchain this way.
Is blockchain useful?
Blockchain is exclusively useful not just for making cryptocurrencies but also for a variety of purposes. We can use Blockchains for many applications also, like tracking ownership or voting rights, etc.
Just like we gave an example of a school. We can also track Students' block-chain easily to see their previous year's records at the school and see their family information.
Just the same, we use block-chains in big organizations and companies apart from bitcoin and not only for online finance but also for normal tracking of information.
Block-chain has proved to be so useful that we use block-chain in the following places a lot: -
Payment processing and money transfers: - every day we transact a large number of money, so we make a blockchain. Blockchain is easy to interpret and we can use blockchain better than normal databases.
Securing ownership: - we can use blockchains for securing ownership of assets and liabilities. Since every asset has got some owner, we can use the blockchain for preserving the information of the owner and use it in case of any emergency or robbery. Thus, blockchains can track down things and reduce thefts, and can even help in managing national resources with full authentication.
Data Sharing: - Just like we see many new updates and launches in website application development, Cryptocurrency IOTA launched a beta version of a data marketplace where he showed the use of blockchains in sharing data or selling data over the internet.
Digital Voting: - In further days, we can use blockchains to contain information of citizens and then we can do online voting or we can turn offline databases into online blockchains database safe and secure.
Tax regulation: - since each blockchain has got its time stamp and it's easy to store data as a blockchain, we can regulate taxation well and no citizen would be left paying taxes.
Seeing the usefulness & functions it offers, blockchain can be great in use. It is very useful.
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But why do we call it Blockchain?
Since we store data using blocks, we simply call it Blockchain. The way we store data and structure it in the Merkle Tree. And so we christened it Blockchain. A blockchain is a decentralized, distributed, and oftentimes public, digital ledger consisting of records called blocks that are used to record transactions across many computers. The blocks of flow have got a database on their own and act independently, and so-called block and since all blocks means the piece of information connected to each other it is in the chain and hence the name Blockchain.
Is blockchain the future or will it fail?
Yes, Blockchain technology certainly has a future. When it comes to cyber security, it provides a wide range of secured systems, it is a decentralized system in which we can encrypt information sent or received by cryptographic algorithms same as we do in android app development services.
When it comes to the money transferring system, it involves no hidden charges like currency conversion or service charges, so whatever amount you send is the actual amount of money sent. Blockchain technology provides the owner to retrace the system and easily check the fault and mistakes to improve customer service. It also provides a better cloud storage system, where we do not involve servers.
This cloud system has very high speed and low cost, even users of blockchain technology can earn money by sharing their own storage. Thus, storage becomes faster and easier, supporting blockchain to have a future in hospitals to store heath reports. Retractability supports business systems like transportation, food delivery, and online stores to maximize their effectiveness by easily tracking the faults.
As we can see the number of embedded technology features that blockchain provides us, which will enable us to have a great secure and faster system, it certainly has a great future. Blockchain with all the assets will solve many cyber issues in present technology and if it does that task, the probability of having a future of Blockchain increases.
Thus, seeing the essentiality of blockchains and the usefulness it offers, blockchains are going to be great in use and will rule the future.