What is blockchain: What is the blockchain used to make bitcoin? Understand in the easiest language?


Posted on 15th Jul 2022 02:26 pm by rohit kumar

A two-day blockchain hackathon will be held in Bengaluru on the 5th and 6th of next month. This heathen has been named Building Future Cities. The hackathon is being organized by the crypto investing app CoinSwitch. The event will also be supported by 'Startup Karnataka', an initiative of the Government of Karnataka, and Tejasvi Surya, MP from Bengaluru South and Sequoia India. The organizers of the event have stated that the purpose of this hackathon is to provide a platform to those working on it, along with discussing the use and possibilities of blockchain in India. During this hackathon, the winners will also be given a prize of up to Rs 3 lakh.

 

 

Blockchain has been a topic of discussion all over the world in recent times. Blockchain has come into more limelight since the era of cryptocurrencies because cryptocurrencies work on the technology of blockchain itself. As the use of cryptocurrencies or NFTs (Non-Fungible Tokens) is increasing all over the world, the importance of blockchain technology is also increasing. Blockchain technology is now taking its toll on the lives of the common man as well. The services we use in our everyday life may be based on the technology of blockchain but we are not aware of it. In such a situation, it is important to be aware of what is blockchain in today's time and how our lives are related to it.

 

 

What is Blockchain?

 

We can call blockchain a series of different blocks, information is hidden in these blocks. The purpose of using blockchain is to fix the time stamp of digital documents so that backdating or tampering with them is not possible. Blockchain technology can also help us overcome the problem of two records without using a central server.

 

Using blockchain technology, commodities like money, property, agreements, etc. can be easily exchanged without the need for a bank, government, or third-party intermediation. The specialty of this technology is that once data is entered inside a blockchain, it is not only difficult but almost impossible to change.

 

With a simple example, understand what is blockchain?

 

Suppose you are shopping in a mall. As soon as you go to pay for your purchases at the counter, you find that your debit or credit card is not working. You receive a notice that due to a fault in your bank's server, your card cannot be used by any customer of that bank, including you. What will you do then? If you ever get stuck in such a situation then you will be in trouble.

 

Now consider another aspect. Suppose the mall you're shopping at has access to a data or ledger that can update every transaction on your debit and credit cards, whether the bank's server is working or not. If this happens, you will be able to use your cards even if your bank's server is down. Because the mall will update your purchase amount in its data and when your bank's server gets fixed it will be updated there as well. In such a situation, you will be able to make purchases without any problem even in case the server is down. That's what blockchain technology is all about.

 

Which example of blockchain do we use?

 

Most of us have used Google Spreadsheets at some point or another. If we think carefully, we will find that the Google spreadsheet we are using is a document or ledger that can be shared on every computer in the world and is connected to the Internet. If we make any changes to this spreadsheet, it gets recorded in one row of it.

 

Anyone using a mobile device or computer can connect to this spreadsheet and access its data via the Internet. Anyone connected to the Internet can view the data entered in this spreadsheet, but cannot change the data already in it. That's what a blockchain is all about. The only difference is that the data is stored in separate rows in the spreadsheet and the data is stored in different blocks in the blockchain.

 

So we can conclude that a block of a blockchain is a collection of data in which smaller blocks containing data or information are linked chronologically one after the other. When many blocks are joined together to form a chain of blocks, it is called a blockchain.

 

What is the relationship between blockchain and cryptocurrency?

 

Cryptocurrencies around the world whether it is bitcoin or Ethereum all use the technology of blockchain. The first and most famous application based on blockchain is bitcoin, the world's most famous peer-to-peer digital currency. Bitcoin is created and controlled by the technology of blockchain itself. Unlike traditional currency, you can send bitcoins based on blockchain technology to anyone and anywhere without the need for permission from banks or governments.

 

Blockchain-based cryptocurrencies like Bitcoin or Ethereum do not even care whether you are a human or a machine. Based on blockchain technology, thousands of bitcoins at the same time are capable of simultaneously verifying the validity of the payment, so its operation does not require banks or any third-party intermediaries.

 

In Bitcoin's blockchain, there exist 1MB blocks that contain peer-to-peer transactions. These blocks are added every 10 minutes after being verified by crypto miners with the help of an inbuilt consensus mechanism. Each entry in these blocks is secured using cryptographic maths that makes it immutable.

 

What will be the role of blockchain in the launch of RBI's digital rupee?

 

Let us tell you that India's Finance Minister Nirmala Sitharaman announced during the budget speech for the year 2022 that in the coming financial year the government will develop a Central Bank Digital Currency (CBDC). Reserve Bank of India will launch this CBDC which will be based on the technology of Blockchains like any cryptocurrency like Bitcoin or Ethereum. CBDC or Digital Currency will be a legal tender issued by RBI in digital form.

 

What is the bad side of blockchain?

 

The fundamental problem of blockchain technology is to control it. Any central bank has complete control over the currency because the nature of blockchain is decentralized. In such a situation, if RBI comes up with digital currency in the future, it will be interesting to see what approach it adopts to maintain its secrecy and monitor it. If RBI keeps its control over the data of this digital currency, then again being a digital currency will be different from the nature of the digital currency, because the basic feature of digital currency or cryptocurrency is that no one can control or monitor it. could.

 

Also Read: I2U2 Summit: PM Modi will be involved, and agriculture parks in India, and clean energy will be discussed

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