The blockchain is a new and fast developing infrastructure technology. If you heard about bitcoin, you must be wondering and asking about this term blockchain too, right. It’s well designed for every field, domain, and area. Mainly used in a cryptocurrency named bitcoin. Kindly note, both a blockchain and a bitcoin are different.
The simple meaning of blockchain is the “chain of blocks“. It’s as simple as the Internet that is “the net of networks”, right.
Let me describe it first in a right technical way. A blockchain is basically a list of blocks (or records). As I just said, “It’s a chain of blocks”. So, its simple meaning is that it’s a list or group of linked blocks which is secured by a technique called cryptography for fairly secure communication.
What is a block?
A block is a small unit in this blockchain and saves all transaction information. A block has a hash pointer, timestamp and transaction data.
- The hash(#) pointer links the prior block in the chain of blocks. It’s a one-way function.
- The timestamp securely holds the creation time and modification time of a document. Once created, no one can change it.
- The transaction data is simply a record.
So, what is the blockchain in real? 
The blockchain (a chain of blocks) is a decentralized, shared/distributed and non-editable digital ledger to record all the history of transactions or movements across no. of computers (or peer-to-peer network) to make your information more secure.
With this blockchain technology, anyone around the globe can transfer the value to another one without the need of any third party. For example, a customer can buy the items from a shopkeeper and pay him/her directly without any mediatory such as a bank.
The blockchain database stores the information online and as it’s distributed, you can simply view it, add to it but can’t change the information already saved into the blocks. The blockchain controls the fraud and errors because the ledger is saved on no. of systems. If somehow, someone wants to hack the blockchain, s/he would have to hack all the systems at a time, not just one. Somewhat IMPOSSIBLE!
Blockchain Features:
The blockchain is simply a database for all online transactions. The blockchain is an open source technology, so it’s completely free with its 5 core features as,
- Efficient – The blockchain is public to all and the transactions in the network are synchronized to all the ledgers around the globe.
- Distributed – It’s not controlled by any private/government body.
- Immutable – Once an entry made in the list/record and saved into the database, can’t be changed.
- Confidential – No intermediary is involved in between the sender and receiver.
- Secure – The key point of the success of this blockchain technology is the use of cryptography.
How does this blockchain work? 
Let’s understand it with reference to the first blockchain based application bitcoin.
Customer & Shopkeeper in the Crypto World
A customer buys some items from a shopkeeper and wants to pay the bill with bitcoins. The shopkeeper provides him a long series number (a bitcoin address) as an A/C number. The customer transfers the funds to his bitcoin address and it’s done. Isn’t it simple?
You have already used the same process if you have paid or paying your bills or purchasing some with your any debit card, credit card, paypal transfer or paytm transfer (in India). The main difference in all these types of transactions and cryptocurrency transaction is that the bitcoin is not centralized. No any financial institution or governing body controls it. All transactions happen only between Party A and Party b.
Once the customer pays the amount to a bitcoin address, a node is created with all transfer details and timestamp. This node is added to the blockchain and miners help it to get transferred to shopkeeper account. Once the transaction is done, the same information is updated to their ledgers and synchronized with all the ledgers in the blockchain. So, every node in the blockchain is aware of this transaction between a customer and a shopkeeper. If later, somehow, the shopkeeper complaints that he didn’t receive the payment, so everyone is aware, who is telling lie? Right! It creates trust among the parties.
A blockchain has two keys, a private and a public. The private key is used to create a digital signature and the public key is used to identify the signature and verify the user authentication.
Remember:
- Blockchain uses cryptography.
- Blockchain transacts across a peer-to-peer network.
- Blockchain distributes and maintains the distributed ledgers.
- Blockchain build TRUST.
The Future of Blockchain
The blockchain technology is gradually rising up and going to change the banking, corporates, industries, businesses and believe me everything.
It’s simply up to you, how soon you understand and adopt the concept of blockchain ‘coz the world is going to change with light-speed. We started to use computers, internet, then mobile and now the next big thing is BLOCKCHAIN, a technology for all.
At last, the blockchain is the solution for everyone. It provides security, speeds up the process and minimum transaction costs. The blockchain is built on TRUST. No middle entity is there. It has the potential. It’s the future technology to change everything.
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