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This article shows you the technical definition of blockchain and the analysis of use cases, which is concise and easy to understand, which will definitely brighten your eyes. I hope you can get something through the detailed introduction of this article.

Excited about the rise of cryptocurrencies? Want to know how Blockchain Technology works? You landed in the right place. This blog will clear your confused mind and you will better understand the blockchain.

Have you ever imagined such a secure and powerful system that could change our economy, our governance system, the way our businesses operate, and possibly change our conceptual awareness of trade, ownership and trust? Well, this technology already exists and is called blockchain.

Technical definition of blockchain

Blockchains are backlinks to encrypted records, decentralized and distributed databases.

Well, if these words seem confusing, let me break it down for you:

-it is a data structure in which each block is linked to another block in time-stamped order. -it is an additional transactional database, not a substitute for a traditional database. -each node keeps copies of all transactions that have occurred in the past, which are protected in an encrypted manner. -all information stored in the ledger is verifiable and auditable, but not editable. -because there is no single point of failure, it has a high degree of fault tolerance.

Doesn't it look charming? Let's solve this mystery together.

Since the blockchain itself is not conceptualized as a separate entity, it is the backbone technology of Bitcoin, so we will try to use the use case of Bitcoin to understand it and how it can help securely transmit this "digital gold".

A simple bitcoin transaction

Considering the bitcoin transaction, James transferred his friend Kevin 5 BTC online.

The transaction is now broadcast to the bitcoin blockchain network, and a special node called Miners receives the transaction from the unverified transaction pool, validates it, and adds it to their blocks.

Here, assume that Lisa and Robert are miners who validate transactions in the network, group validated transactions and begin to compete to solve a complex mathematical problem called workload proof.

If Lisa solves this problem first, she will broadcast the block to the entire network. Other miners validate the block, and each node agrees on the current status of the ledger, and each updates the record independently. Therefore, James and Kevin receive a verification message that the transaction is completed.

As a result, transactions become part of a generic distributed ledger (or blockchain). And, for her computing work, Lisa got the newly created bitcoin (so it's called mining). The current reward for each block is 12.5 bitcoin.

"as a result, digital money is transferred from one person to another without using the third parties we use in traditional systems. isn't that great?!"

However, the advantage of blockchain technology is not a new technology.

It can be said that it is a way to integrate powerful technology in new ways.

Blockchain: a set of technologies

Encryption algorithm:

The blockchain is protected by a powerful state-of-the-art encryption mechanism. Everything stored on the block chain is encrypted. To give you a better understanding of how it is used in Blockchain, let's go back to the example discussed earlier, where Kevin transfers 5 BTC to James. This transaction enters the network in the form of encrypted messages. This message is unique for each deal.

Now, you will ask what is unique about this message? This is because the transaction is signed by the sender's unique key, called the private key, and is therefore a digital signature. The mechanism looks like this:

The miner validates this digital signature to verify transactions in the network.

Cool. Isn't it? Let me tell you something more interesting. I've seen these numbers before: 09bed8e02e49277378f256c9d93ba4e408771088483f3955c6b1186ac8c7630a. Does it look messy? Well, it's called secure hashing algorithm (SHA-256).

This function is so powerful that if anything is delivered through this algorithm, it will provide you with the digital fingerprint of the input. Even if a single space is changed, the fingerprint will change completely.

Want to know how it is used in the blockchain? Remember I told you that the blocks in the blockchain are linked to each other. All right, you go ahead. If you hash a bunch of transactions, you give the whole "block" a unique fingerprint! okay.

Now, your next trading block has a new transaction-the hash value of the previous block will be added.

This is the security of block chain system in terms of encryption.

Distributed network:

Blockchain uses a distributed network in which two or more nodes cooperate with each other in a coordinated manner to achieve common results.

All users on the blockchain are nodes (or peers) that maintain their own ledgers.

In a distributed architecture, transactions are peer-to-peer and it takes about 1-2 seconds to transmit transactions over the network.

Faster transaction processing makes the peer verification process faster. This will eventually lead to faster transmission of digital assets.

Plan (blockchain Agreement):

Blockchain uses network service protocols to run the system smoothly and securely. Nodes serve the network by maintaining transaction records. The validation process can be customized for each blockchain. Basically, it is a consensus mechanism for managing blockchain networks. An example of workload proof in a bitcoin blockchain.

The consensus mechanism does two things:

It ensures that the next block in the blockchain is the only real version.

It keeps powerful opponents from derailing the system.

Faster transaction processing makes the peer verification process faster. This will eventually lead to faster transmission of digital assets.

I think you now know how these traditional concepts are used in blockchain technology. Let's show how the system works and visualize the graphics:

All right, let's move on to the type of blockchain.

Block chain type: block chain technology

Public: the public blockchain displays ledgers to everyone on the Internet, and anyone can verify and add a transaction to the blockchain. Example-Bitcoin, ethernet, Dash,Factom.

Private: all permissions are centralized in the organization. The private block chain only allows specific people in the organization to validate and add transaction blocks, but usually allows everyone on the Internet to view them. Example-Multichain,Blockstack.

Alliance: controlled by a member alliance. Only predefined node sets are authorized to write data or blocks. Examples-Ripple,R3 and Hyperledger1.0.

Blockchain technology use case:

Currency is just the tip of the iceberg of blockchain technology. Blockchain is a breakthrough technology, and currency is only one possible application.

Here are some practical applications of blockchain:

Now let me tell you where blockchain technology will lead us in the near future.

Possible block chain structural transitions:

According to the census of the World Economic Forum, progress in blockchain technology is expected.

The above is the technical definition of blockchain and the analysis of use cases. Have you learned the knowledge or skills? If you want to learn more skills or enrich your knowledge reserve, you are welcome to follow the industry information channel.

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