What is blockchain technology simple and easy explanation

 

A simple and easy explanation from scratch of what is blockchain technology. In 2021, everyone without exception must know all the information and understand what the blockchain technology network is, or literally, the blockchain that depends on the block system. Because it is important for you to learn about the technology of the future called blockchain technology, this technology can be the basis of all encrypted digital projects coming in the future, such as database projects, business and money projects, financial transactions, banks and banks, supply chains, the economy, Voting, elections, computing, global health, superfast quantum computers, the Internet of value, the Internet of Things and the current Internet. And more blockchain technology will show us in the future.

We searched a lot for a simple and easy explanation from scratch of what the blockchain is, i.e. an explanation that even those who do not know anything in technology and technology understand, and we did not find any content that provides us with a complete enlightenment of the blockchain, and we decided, to presented all information and everything you need to know about digital currencies, blockchain, bitcoin, alternative currencies, tokens, ICO, financial technology and crypto economics.

So what is blockchain technology without complication?

Blockchain technology is a continuous chain of blocks built according to established rules, and personalized information. Blockchain is a permanent transaction log and distributed database that can be programmed not only to record financial transactions such as cryptocurrencies, but almost any blockchain technology can be exploited because anything for the sake of reliability and reliability

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But such a definition does not give an adequate understanding of what blockchain is, how it learns, what its technological strength is, and what it can add to the field of information technology. Let's consider the blockchain in more detail and try to explain the type of technology simply and clearly.

Blockchain technology is a versatile tool for building diverse databases, which has the following advantages:

Decentralization: There is no single server or computer that stores transactions and information. All records are kept by every member of the system or network, the largest computers distributed across the world, and no one has any authority to change the network system or falsify its content.

Full transparency and credibility. Any participant can track all transactions that took place in the system, from anywhere in the world, and he can also participate in the blockchain network.

Fully confidentiality. All data is stored fully encrypted via mathematically complex algorithms. Users can track all transactions, but cannot identify the recipient or sender of the information if they do not know the wallet number. This requires a unique private key to execute transactions.

Reliability. Any attempt to make unauthorized changes to the blockchain network will be rejected due to inconsistency with previous versions of the database. For legal change of data, a special unique code that is issued and confirmed by the system is required.

Flexibility. The data that is added to the system is verified by other participants in the blockchain network. By smart unique operations, the participants in the network recalculate the hash through their computers in order to verify transactions across the accounts that the system makes to ensure the up-to-date information by matching its sequence with the previous information.

By allowing digital information to be published without being copied, blockchain technology created the basis for the new internet. Technology has been applied to Bitcoin digital currency, but the technology community is currently looking for other applications, and as the technology has so far been applied to the most vital areas such as the commercial supply chain, the Internet, banks, the automotive industry, and smart cities.

Blockchain technology was not only created for the financial system, but even for traditional businesses, and current companies and institutions in order to provide the best for the system of storing transactions and data, so that the practical technology for all sectors, blockchain is aware of the encryption system and it is not possible for fraud in it even in the simplest and smallest information, whatever it is. Its importance, therefore, so far since its launch, the Bitcoin blockchain network has never instigated any attack, and no entity can how it would have inflicted any damage on the Bitcoin network unless it had at least 51% of the network's computing power.

Bitcoin cryptocurrency is called “digital gold,” and for good reason. Today, the total value of the coin is around $ 351 billion. Blockchain technology can create other types of digital value as well. You don't need to know how a blockchain works to use it, like the internet or a car, for example. However, having a basic knowledge of this new technology will help you understand why it is considered revolutionary technology.

Blockchain technology in simple words

Blockchain technology is a distributed database where storage devices are not connected to a shared server or one central server. This database stores an ever-growing list of finely chained records called blocks. Each block contains a time stamp and a link to the previous block.

Let's explain the blockchain through a simple and uncomplicated example. The blockchain is often compared to a diary, record, or file cabinet, where records are made in chronological order about what was accomplished. So that no outside person can make changes to the diary at his own discretion, all information is encrypted in a special way and a distinct fingerprint.

For the sake of reliability, the diary contains many copies stored in various places. Moreover, when new information is entered into the diary, it is updated on all copies after verification.

Blockchain technology was designed from the ground up to be secure at the database level. The blockchain concept was proposed in 2008 by Satoshi Nakamoto. First implemented in 2009 as a component of digital currency - Bitcoin, the blockchain plays the role of the main shared ledger for all operations with Bitcoins. Thanks to blockchain technology, Bitcoin became the first digital currency to solve the problem of double spending without using any trusted authority or central server.

Security in blockchain technology is provided through decentralized timestamps and peer-to-peer network communications. As a result, an independently managed database is created without a single center. This makes blockchain technology very suitable for recording events (such as medical records), data operations, identity management, and source authentication.

What do you think of everything I've read about blockchain technology?

Are you excited to read more information about blockchain technology that could alter our view of technology and that could improve many areas?

This topic is the first in the series "A Simple and Easy Explanation of Blockchain", in which we will provide the reader with a non-technical introduction to what is blockchain. This topic is simply about agreement, which may seem to you have nothing to do with our topic, but is an important basis for understanding the power of blockchain.

Agreement is something that makes us happy. Whether it is agreeing on the best soccer team, what good cheese tastes or the political candidate that will make our country great. And if we look closely, we will find different types of agreements that are everywhere. It is not only the explicit agreements in the conversations and issues between us. But we can also agree even on our words, on our manner of speaking, and on what we utter words...

The types of agreements differ with varying degrees of social consequences. Some issues are not important if we reached an agreement or not. For example, it is not very important to agree with your friend about the best tastes of cheese. In this case, you can agree or not to his suggestion, and go away and eat the cheese you want. Other, less important things, for example a couple or two partners, the husband suggested that he buy one type of cheese, but the wife wanted another cheese other than the one chosen by the husband, but the latter insisted on his decision here that the two parties must reach a unified agreement through arguments on which cheese they would buy, until And if the agreement is important to the two parties, the community remains not important. On the other hand, you have other more important agreements for the community to continue. One of these matters is agreement on the language and the meaning of the words...

For societies to last for long and great ages, a common agreement is needed on some of the most important issues. A clear place to create agreement on community rules, also known as laws.

Agreeing to agreements

One of these laws may be to allow people to enter into binding agreements with one another. The agreement defines what members of the community can make agreements on, and what procedures should be followed if the agreement is not agreed. Basically, it is a community agreement about how to treat the agreements between the participants in the community.

This agreement exists in most modern societies, but it is not without its limitations. People could not enter into any binding agreement that they wanted. For example, the minimum wage is, for example, one of these restrictions, as you are not allowed to agree to work for an hourly wage less than the minimum agreed upon in society as a whole.

The agreement regarding the agreements is known as contract law. Modern societies have a central authority to document, update, and implement contract law. If there is a dispute about an agreement, you can take that agreement or contract to the government, who in turn chooses what to do about the dispute (this is also known as going to court).

Private property

Another very important issue that society must reach agreement on is whether people can own things. This may seem like a no-brainer, but it should be thought about in hippie or customary societies, for example!

Once you have created the agreement that individuals can own the things, the next step is to make sure that there is agreement about who owns those things. For some things, like the personal belongings I wear, it's very clear. For example, if you have simple things and lost them one day, they will not affect you, but if you exceed something of average value, the matter will affect you in the first, but you will forget with time, even if the reason for losing it was theft, or someone took it from you without your will.

But there are big things. The things that really affect you if you lose them. An example of something big is the apartment that you own. Losing this apartment will make your life change. For example, what if anyone could steal your apartment, house, or car as you steal your wallet, here society will be in chaos and things will not go as everyone wishes, and society will only be busy protecting your property all the time, and so the wheel of society will not run. So, for the big things, it's important for society to agree on who owns this and who owns it.

What prevents another person from sneaking into my apartment and claiming it to himself and claiming to be his own, while I am busy with other things in the city?

Let's start answering this question by imagining how this problem is solved in a small tribe. In this case, the solution to the problem is very simple. Everyone knows everyone in the tribe, not many people and mud huts count. Thus the tribe members can know that this hut belongs to this person. Basically, most of the tribe members have an agreement about the property reserved for the people without documentation, because they know some of them in the tribe, even if a guest or an intruder comes, the tribe will know him, which is what makes all the property preserved in their minds.

If one member chooses to sell the hut to the other member of the tribe, this deal is communicated to the rest of the whole tribe or most of them, and with this, the agreement about ownership in their heads is updated. And if a tribe member tries to claim the hut that he sold and that he owned after the sale, the tribe will not agree to that and they will know that he is lying, and he will be deterred.

For modern societies, the challenge with this approach is that we have limited capacities in memory, thinking, and connection with the rest of us in society because we number in the billions. Tracing ownership as it is distributed in small tribalism is not humanly possible. Therefore, in modern societies, this problem has been solved by the government that has a central registry in which all information about the owner of real estate and assets is updated in the presence of the owner and the buyer with documentation from the governments.

Real estate is only one example of multiple holdings, but ownership of other large items is usually resolved by central registries. Here are some other examples of records that track and maintain ownership of things by individuals:

• Governments track ownership of vehicles, cars and vehicles of all kinds through the registration plates registry.
• Dog clubs track dog ownership through a breed registry.
• ICANN keeps track of who owns websites.
• The bank keeps a book of bonds and people's financial accounts.

Keep track of what's among my subject

Modern societies are built on agreement on some issues that are not part of an objective reality. Which are agreed common beliefs such as nation states, property, money, laws, contracts, religions, and human rights ... None of these phenomena are part of the natural world, but some are still necessary for us to coexist in modern societies.

These groups of commonly agreed beliefs have been called inter-subjective. Since many individuals within a large community believe in these beliefs, they function as objective phenomena from the perspective of the individual. For example, if your bank account does not prove that you are a billionaire, it does not matter how convinced you are that you are a billionaire.

As historian Yuval Harari argues in his book Sabines, the only way in which more strangers can collaborate effectively is through believing in a set of shared beliefs. For example, I am ready to trade in vegetables for money, because I believe that another person is willing to accept the same money when I want to buy a car from him,

Since self-existence is something that does not exist objectively, modern societies formalize these agreements by documenting them and claiming that they are real. Reliable authorities are used to preserve these only “truth” sources. These agreements are preserved centrally, because there was no other way to preserve them.

So far!

Blockchain technology documents, creates and maintains agreements collectively without being in the hands of a central body, a person, an entity or an institution that we voted on or invented from the community. Blockchain excludes the monopoly of the truth by central authorities or something called central, as the Applockchain is against Central.

In our next second topic in this series, we will explain to you how blockchain does what was mentioned in the paragraph before this without going into technical jargon. So that we remain in the context of a "simple and easy explanation of the blockchain"

Was this first topic about blockchain technology understood, and if not, write your questions and inquiries and we will try to respond to them and clarify what you want to clarify.