Let us start with a scenario. Whenever there is an election, we always hear the rumor that there is rigging in the election. In the end, the result is either re-election or a recount of the votes. This whole process is a waste of time and money. If we cannot believe this system the first time, how can we do it a second time? And it is a great scenario where blockchain can be used in real life.
Now, what is the Blockchain?
If you search blockchain on google, you get millions of results that tell us about blockchain. Judging by these millions of findings, it turns out that blockchain technology is one of the cutting-edge and popular technologies. Blockchain is a decentralized, transparent, and trustless system in which there is no need for any middleman or central authority. The best example of this is all companies like banks, where the middleman is involved. Blockchain is a trustless system, and it uses algorithms to build trust within decentralized systems. Often, we hear a word with blockchain is unchangeable, which means that whatever is written once inside the blockchain can never be erased again. Blockchain performs two functions, reading and creating.
Most people think that blockchain is bitcoin and limited to cryptocurrency or only the financial industry uses it. But in fact, blockchain can solve lots of real-world problems like we talked about voting system in the beginning. So, blockchain is an online distributed system in which you store information, and this information can also be access by other parties. All information is store inside a block or container like a register. And all the accounts we call block/register link to each other like a chain, as its name suggests blockchain.
There are three things in each block within the blockchain.
- Data of the block: This block contains all information like sender, receiver, coins, source, or destination address, etc.
- Hash of the block data: it is known as the backbone of blockchain. Hash is the encryption technique uses to secure the data. It is never easy to decrypt the hashes as they use a fixed length of alphanumeric for encryption. And the hash value always stays unique.
- Hash of the previous block: Help to create a chain with the previous hash of the block.
Source: The Ultimate Blockchain & Bitcoin Guide
