Introduction to Blockchain technology
History of blockchain Technology in three steps:
- It was initially developed in 1991 as a sort of digital timestamp. Early innovators saw this function almost as a “notary” function. There could be no backdating or tampering with data utilizing the early blockchain technology.
- For almost two decades nobody really cared.
- 2009 “Satoshi Nakamoto” introduces BTC.
- It was initially developed in 1991 as a sort of digital timestamp. Early innovators saw this function almost as a “notary” function. There could be no backdating or tampering with data utilizing the early blockchain technology.
- For almost two decades nobody really cared.
- 2009 “Satoshi Nakamoto” introduces BTC.
What is blockchain Technology?
Blockchain is a form of “Distributed Ledger.” I’ll break it down with an image so its easier to understand. Each “block” has three basic parts to it. The “data”, the “hash” and the “hash” of the previous “block”.
Data: This differs depending on the function. In something like BTC we have the sender, the receive and how many coins moved.
Hash: Think of the Hash as a unique ID or fingerprint. Changing anything about the block changes the hash.
Hash of Previous Block: That is exactly what it sounds like. A ledger containing the unique ID/fingerprint of the block before it in the chain.
You’ll notice the first block has no previous hash number. That is because it is the first block in the chain. It is known as the “Genesis Block”, the beginning.
Why is Blockchain Technology so difficult to tamper with?
A modern computer could calculate hundreds of thousands of hash/second. In theory it would be easy to tamper with a single block and then change the hash number of the preceding blocks so they would match.
A concept called “proof of work” slows down this process to prevent computing and changing previous hashes. Currently it takes about 10 minutes to generate the hashcash proofs of work to mine BTC. This means that if someone were to TRY and tamper with a block they would need to change EVERY block before that as well to hide the discrepancy and receive P2P validation.
At 10mins/block it simply isn’t possible.
Blockchain technology is built utilizing a peer-to-peer verification process. This means each when a new block is discovered it is sent to everyone on the network and each node will independently verify the correctness of the block. In the simplest terms every node executes a consensus protocol to verify the addition of the block. ALL OF THEM. This also removes the need for centralization. (ie decentralization)
Any block that has been tampered with will be rejected by the nodes.
In order to effectively tamper with the blockchain and be validated on the P2P network someone would have to:
1) Tamper with ALL the blocks on the chain. (Remember the hash of the previous block)
2) Redo all the POW.
3) Somehow take control of greater that 50% of the P2P network.
$Bitcoin (BTC.CC)$ $Ethereum (ETH.CC)$ $MARA Holdings (MARA.US)$ $Hut 8 (HUT.US)$ $Riot Platforms (RIOT.US)$ $BIT Mining (BTCM.US)$
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MJL21 : Thank u!
Johnnie Worker : Glad to know such great info. Blockchain has created so many tech stocks that bull for years
Machiavellis3rdEye : Teach them all! This is the way.
Baboom : lol do redundant kinda makes you think of entire economy might be the big arbitrary mess where real work is exploited for capital and value is actually meaningless.
UxFxO : the value isn't meaningless, owning a coin is like owning a stock. A stock is a imaginary piece of the company. A bitcoin is an imaginary piece of ownership in the block chain. The block chain is held up by an army of supercomputers mining bitcoin. There is a limited supply if bitcoin.
This is no different than stocks. Open your mind, the internet of the future is a thing, and it is coming.
Just like stocks, there are some shitty alt coins with no real value because they aren't backed by anything, they are pump and dump schemes as we see in stock.
Also just like stocks there are crypto that back innovative, imaginative and lucrative technology on the forefront of the ever changing world.
You know why it's called crypto? Because cryptography is the complex mathematical securement used to encrypt the data on the block chain.
Crypto is more than just a scheme, and it's not going away. Do some research, it takes a long time to wrap your head around it all, but once your eyes are open you can see the future that crypto will have.
Not all crypto coins are winners, not all stocks are winners. Do your due diligence before buying and selling anything.