Bitcoin Blockchain Technology – Everything You Need To Know About!
Bitcoin is a widely popular cryptocurrency but one thing that is more popular than it is the technology on which it is based on. Bitcoin works on blockchain technology, which is quite amazing and has numerous applications in several industries. If you love trading bitcoins, Bitcoin Calculator page is the perfect place for you. Blockchain has a great scope in the future, and you must have proper knowledge about it so that you can take maximum advantage of it. You can read below to learn all the basic aspects of blockchain technology.
What is blockchain technology?
Blockchain is a modern technology used to store data and records. In simple words, it is a public ledger in which you can record transactions and store data. The best thing about storing transactions in the blockchain is that all the records in it are immutable, which means once a transaction is recorded in it, it is impossible to delete or make changes to it. It is a record-keeping technology that is also used in the popular cryptocurrency, Bitcoin. It is quite different from the traditional database as it stores data in groups termed blocks. The data is accumulated in blocks, and all of them are connected to each other, which is why it is known as the blockchain.
Each block included data, and when it is completely filled, a fresh block is opened, and all of them are chained with each other, which keeps a proper record of the data and in a suitable order. There is a wide range of information that can be stored in blockchain. One of the most important and beneficial aspects of blockchain is that all the data recorded cannot be stolen, changed, or deleted, which offers maximum security to bitcoin users.
How is blockchain different from a traditional database?
There are several types of databases, but the blockchain is different from each one of them, and one of the biggest differences is the storage structure. The structure of data stored in the blockchain is different as it is stored in blocks, and all of them are put together in a chain. Each block has limited storage, and when it is filled with data, a new block needs to be added to the chain. Usually, a database records data in a tabular form, but blockchain puts it into groups known as a block that is connected with one another. Each block added to the blockchain has a unique timestamp on it, which makes it clear that when the block was created and added to the blockchain.
Blockchain is a vast network of computers storing bitcoin transactions. It is not necessary that all the computers would be under the same roof and as they can be anywhere in the whole world. All the computers working over the Blockchain network are connected to each other and can access all the data recorded in the blockchain, but no one of them can make changes to it. Each computer is controlled and owned by a separated group or individual, and the computers which form up the vast network of bitcoin are termed nodes. In this way, the whole blockchain network works in a decentralized way as all computers are separately owned and operated. There is no single person or institution that has control over the complete network. No user can alter the information recorded in the blockchain, which is the primary reason that bitcoin transactions are irreversible.
One of the most prominent features that make blockchain differ from traditional databases is that it is a public ledger which means it can be accessed by anyone. All the transactions and data recorded in the blockchain are visible to everyone over the network, but no one can delete or make any changes to it. Each node has a unique copy that allows users to track their bitcoins and know where is it going, even after making a transaction. It makes bitcoins easily traceable, as if your funds get stolen, you will be able to easily track them and know who is using them and where. Bitcoin exchanges also work on blockchain technology which ensures that even if they get hacked, the hackers can be traced using the bitcoins they have stolen. It enhances the security of the users to a great extent.