What is Blockchain

At the present stage, human life is associated with new technologies, information, money and numerous papers. To achieve certain tasks, it is necessary to involve numerous intermediaries, cooperation with which implies the conduct of dozens of different operations. They come to believe because there is no alternative. But lately there are more and more companies and individuals who abuse their position. The task of the Blockchain is to fix a problem that is associated with significant material (paid intermediary services) and time costs (paper and other red tape in the paperwork).
 

What is the essence of Blockchain?

Many people wonder what Blockchain is and what is the essence of innovation. The essence of the technology is in the distributed storage of information concerning any life issues. For example, the Blockchain chain can store data about transactions and who transferred money to whom and in what volume. Innovative technology is a great example of how modern technology can change not only financial standards, but the whole world for the better.

When applied to cryptocurrencies, Blockchain is the mainstay of Bitcoins financial power. It guarantees the fixation of information about money transfers carried out between the participants of the system, carried out over the entire period of existence of the alternative currency and the Bitcoin payment system.

In addition, the Blockchain technology allows you to store information about real estate rights, previously granted loans, traffic violations, marriages, and so on. It turns out that everything that can be stored on paper is recorded in the Blockchain. The only difference is that it will no longer be possible to change or falsify the information. Humanity has appreciated the unlimited possibilities of innovative technology and is making attempts to use it to keep records in almost all types of its life.
 

Blockchain chain design

According to the structure, Blockchain is a chain of blocks that contains certain information. In this case, all blocks of the chain are connected to each other. The block is filled with a group of records, and newly emerging blocks are always added to the end of the chain and duplicate the information contained in the previously created structural units of the system, adding a new one to it.

The blockchain is built on the basis of three main principles - distribution, openness and protection. System users form a computer network. In this case, a copy of each of the blocks is stored in each of the PCs. This principle makes the system almost invulnerable - it is unrealistic to disable it. The only option is to break down all computers at the same time, which, given the total number of computing nodes scattered unevenly over the entire surface of the planet, is not possible. In reality, each subsequent user of the network only strengthens the Blockchain, makes it resistant to damage. It is also important that users exist in a world of equality. There are no controlling structures, moderators or administrators in the system. Here everyone is responsible for their actions.

Blockchain information (blocks and information in them) is available to everyone. If necessary, then any block is opened for study. This means that the chain, if necessary, allows you to track and also evaluate the path of information change, check the correctness of the data. So what is Blockchain? In essence, this is a system that allows you to check other participants and not trust anyone. If there is any doubt, a check is carried out and a decision is made.

All data in the system is protected. The blockchain chain is securely encrypted, which paves the way for reliable and open information. In simple terms, you can see all the millionaires through the information in the block. But to find out to whom it belongs is unrealistic. A special key is used for confirmation. It depends on him whether the user will be identified by the system or not. This is the Blockchain technology, and this is its main feature.
 

Keys

The protection and reliability of the Blockchain is based on the keys mentioned above, with the help of which the process of checking the correctness and veracity of information is simplified. The cryptographic key itself is a group of letters and numbers, which are calculated using a specially created algorithm called the hash function. At the same time, the user has only one key, which has two different qualities:

- firstly, having the key in hand, you will not be able to find out the primary (initial) information.

- secondly, it is impossible to pick up another data package that would allow creating the same key.

Having a key on hand does not mean anything yet. The person who has the key will not be able to harm the system or another user. On the other hand, examining the available information allows you to check that the data matches a certain key. There is one more thing. Even with small data adjustments, the key will also change.

Features of the Blockchain Network Blockchain information is located on millions of PCs located in different parts of the world. Moreover, all users on the network have identical rights and obligations to each other. Any bans on the Blockchain network do not work. Consequently, the user of the system can safely dispense with intermediary structures such as registrars, insurers and others. There are no authorities here, and each user works for himself.

What is Blockchain from a network perspective? When a person connects to a PC group to exchange information (records or blocks), he becomes part of the system. It does not matter geographically where the user and his computer are. It can be Washington, Krasnoyarsk, Paris or Las Vegas, a modern metropolis or a small village in the outback. After receiving the information, the recipient identifies it and checks the validity of the received data, saves it and sends it further. This means that there can be two types of data on the network - real (true) or fake. False data is often disseminated to achieve any selfish goals.

The Blockchain is built so that there are two types of participants in the network:

- "Builders". Their feature is the creation of new blocks. Such people are called "miners" or miners.

- Ordinary participants, as a rule, form ordinary records of transactions from one point to another. In this case, all records are available for study, but they are encrypted. The task of the miners (they receive premium virtual coins of a certain amount for this) is to collect the records of ordinary users, form them into blocks and send them over the network. After that, ordinary participants receive ready-made blocks and store them on their PCs for subsequent verification of their own and other peoples data.

Blockchain technology is built in such a way that until a record is made in a block, the latter is considered invalid. The network user can use it, but there is no guarantee of the accuracy of the information. There are situations where a wandering record is eventually canceled. Once the record has been saved in the block and verified, it is no longer possible to undo it.
 

The subtleties of building a Blockchain network

The most interesting is the structure of the block, which is formed from two elements - the body and the name. The body (base) of a block is a group of records. As for the title, it is in it that the main information of the Blockchain is contained. As already mentioned, blocks are linked using keys, because the key of the previous block is stored in the names of the blocks. Thanks to this feature, it is almost impossible to hack the network.

In the key of blocks, records of not only the current, but also past blocks are encoded. Therefore, when correcting information (even insignificant), it is possible to change its key and, as a consequence, subsequent data. Knowing the keys and seeing the blocks in front of you, it is not difficult to check the correctness of the information. If at least one block is skipped or the sequence is changed, it will be immediately noticeable. In addition, the block key guarantees network protection, the level of which increases with the growth of the network.

Thus, the Blockchain system is distinguished by its openness and at the same time reliability. Its implementation will radically change life for the better and eliminate many fraudulent schemes - scams, "gaps" in the balance sheets of banks, and so on. Thanks to the work of the new system, many people will be able to avoid financial losses and learn how to check all operations. Blockchain is a universal platform on which new modern standards will be based. It will undoubtedly change the current economic and financial standards for the better.