Block chain is a widely known term in the IT community, but not everyone fully understands its complexity. People often associate blockchain with: Bitcoin, assume they are identical. However, blockchain is more than just a cryptocurrency platform.
Here’s what you need to know:
- Imagine a digital ledger that records transactions in a decentralized manner.This ledger is called blockchain.
- Once a transaction is added to the blockchain, unchanging — means it cannot be modified or deleted.
- Unlike traditional databases, where a central authority manages data, blockchain relies on a network of computers (nodes) to maintain and verify records.
- ledger: Think of it as a digital bookkeeping system that tracks your transactions.
- distributed ledger: This extends the ledger concept by distributing copies of the ledger across multiple nodes, increasing security and transparency.
- blockchain technology: Powering this distributed system is the underlying framework.
At the end of this article, you will be able to:
- Recall the example of blockchain technology in use.
- Understand the importance of terms such as ledger, distributed ledgerand blockchain. 🌐🔗
Bitcoin and blockchain:
- Bitcoina well-known cryptocurrency, is often people’s first encounter with virtual currency. blockchain technology.
- You may not realize it, but Bitcoin runs on a blockchain foundation.
- The main purpose of Bitcoin is to prevent fraud and duplication of funds.
- Blockchain plays a key role in this by ensuring that currencies cannot be copied or manipulated.
Real-world examples beyond Bitcoin:
- Major global shipping companies are currently implementing blockchain to enhance their operations.
How does it work?
- shipment tracking: Blockchain allows shippers to closely monitor shipments.
- immutable record: All interactions with your shipment are recorded and cannot be changed.
- whole history: Blockchain maintains a complete history of shipped goods from the time they enter the system until they are delivered.
a ledger This is like a financial diary where banks, businesses, etc. record money paid and received. 5000 yearsthe ancient Mesopotamians used clay tablets to track transactions.
- While the fundamental purpose remains the same, modern ledgers have evolved. Often instead of a physical book, digital application Backed by database.
- a client application Connect to the main database. Read current data and send updates. However, be aware that accessing source files directly can result in tampering and data loss without your knowledge.
Imagine a traditional ledger, like an old-fashioned book where transactions are recorded. next, distributed ledger.
Here’s how it works:
- A distributed ledger shares the entire dataset among multiple network participants (members) instead of a single master copy of the data.
- Each member has a complete copy of this data.
- Not a single weak point: There is no central master file, so no single point can corrupt the file.
- redundancy: If one participant goes offline, other participants keep all their data.
- Update with consensus: If someone wants to change the data, all participants must agree, which makes hacking very difficult.
- Please try to imagine distributed ledger This adds important functionality. Immutability.
- Immutability This means that once written, the content cannot be edited or deleted.
- and blockchainthe data becomes immutable, like being carved in stone.
- The entire history of data is stored from the beginning of the blockchain.
How to use:
- Imagine a set of transactions, each of which includes: block.
- When information changes, the blockchain adds new blocks rather than overwriting the information.
- This way, your old data will remain intact and you will always know what your previous data was.
In summary, blockchain ensures security, transparency, and a robust record of data.
Milan Dore MS (data analysis)
Cloud Strategy Leader | Corporate Transformation Leader | AI |ML
Certifications include TOGAF, AWS, ML, AI, Architecture, Snowflake, Six Sigma, NCFM, Advanced Data Analytics, and Excellence in Financial Markets awards. Learn more- www.milanoutlook.com