A Simple Explanation about Blockchain
The blockchain is not a “technological monster”. In this article, we’ll explain it in the simplest way possible
Education is the current tool needed to demystify the concept and simplicity of Blockchain technology and its application.
Blockchain technology and cryptocurrencies have been discussed in so many different ways, from the terminology to the complexity of programming the necessary codes for the effective implementation of the blockchain applications.
All these factors create a blurred picture of what blockchain is and how difficult it is to learn.
However, the creation of tech hubs and various academies introducing blockchain to their curriculum has brought knowledge to intending students.
We can teach and demystify the concept of blockchain and its use case so that everyone has an understanding of how it works and how it can impact our lives in general.
What is a Blockchain, after all?
According to Euromoney.com, a blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on it.
Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).
Wikipedia defines blockchain as a 'growing list of records, called blocks, that are linked together using cryptography', but it is also described as a "trustless and decentralized immutable data storage" that is spread over a network of participants.
All these definitions and explanations may sound complicated to someone who has not heard of the word “blockchain” before.
How does it work?
Simply put in my opinion, “blockchain is a digital ledger or record of transactions which is stored in a block in a decentralized manner with the assurance that it is secured, immutable and backed by trust, based on the fundamental principles of cryptography and anonymity”.
However this may still sound complex but it can be represented in a pictorial form as represented below.
With the above diagram, one can easily identify the various blocks having its various properties which include the timestamps, transaction hash and the previous hash.
This block containing all this information links to another block within the chain, with new transaction information hence the word ‘blockchain’.
Remember: if the block does not have the correct information about the previous one, the transaction won’t be completed.
And that’s the power of the blockchain: only allowing the transaction to succeed if the information (hash rate) of the last block is passed on correctly, therefore is considered tamper-proof.
In order to be altered, the blockchain would need the “51% attack” in which miners would have to control at least 50% of the network's mining hash rate so the chain could be tampered with.
This is extremely hard to achieve considering the complexity of a blockchain’s work, the decentralized mode and the incentive rewards provided by crypto’s networks that pay a huge amount of coins to miners if they mine properly.
The Klever team has taken upon themselves the mission to enlighten our users and intending enthusiasts who may want to know more about blockchain technology and cryptocurrencies by creating contents on our various platforms to demystify all these terminologies.
That’s why we encourage everyone to go ahead and create their own wallets and ensure they follow the Klever team on all the various social media platforms to get all the educational contents in order to increase their knowledge.
It is indeed a Klever thing to do.
By James Enajite