What is a blockchain and how it is related to cryptocurrency?

Understanding the basics:

To understand the fundamental and detailed concept of blockchain. It is important to understand the core concept of a database. A collection of information or data that is stored on the computer system by electronic means is known as a database. The structure of the database is in the form of a table. This allows the user to search for any record that they want. Either they need to filter any record or even delete it. The tables make this process a lot easier. The databases are designed for a larger corporation such that any user can filter, access or manipulate the data whenever they want.

For large databases, it is important to have powerful computers as only then it will be possible to store information. If one needs to use the computing resources and storage space that will be required by many users so that they can access the database at the same time. Then these servers may often be constructed with thousands of computers. Often the business owners are the ones that deal with large databases for their business. They tend to appoint an individual that excels in handling the databases and will manage it for them.

What is blockchain?

To describe the process of blockchain in simple terms, a blockchain is like a computer file in which data is stored. Yet, with blockchain one won’t have to worry that their data may change or get hacked. Blockchain is a type of distributed ledger technology. DLT provides allows many users to manage the decentralized database. As a result, the data that is in the blockchain is distributed through many computers, making it decentralized. One of the major aspects that makes the blockchain so revolutionary and transformative is decentralization.

As the records are not accessed by a single member of a company or even the central administrator of the government. These records can be verified by the user consensus. Several transactions are going on in each chain of the block. If there is a new transaction that happens then the record of that specific transaction is added to the ledge or each user. This also means that if even a single block in the chain is modified then it will be clear that the chain has tampered. As the whole blockchain is transparent this is what makes it safe too. The hackers are unable to target a single core point that they can attack. If the hackers try to attack then they will have to alter every block in the chain, through all distributed versions of the chain.

What is cryptocurrency?

Cryptocurrency is digital money that is decentralized and made on blockchain technology. Bitcoin and Ethereum are well-known cryptocurrencies and also the part of the blockchain that is expanding as blocks being added to the chain. Blockchain aims to allow the information to be digitally stored and distributed without being edited. While blockchain has been used to transparently record payments. Yet, it can record several data points. These records can be in any form. Such as they can be in the form of different type of transactions, number of identifications and also votes in an election.

In Cryptocurrency such as bitcoin, the blockchain is used in a way that all users have control of the information. It is not specified to a single user or even some specific group.

How blockchain is related to cryptocurrency?

Different projects are being carried out with the help of blockchain. Using the blockchain will get the most secure result other than having different records piled up. The use of blockchain to vote in democratic elections is a very strong example. Each citizen of the country will be provided with a single cryptocurrency or a token under the voting system taking place. For the candidate, they will have a unique wallet address. The voters will need to send their token or their cryptocurrency to the address that they wish to vote for. As the blockchain is secure and traceable. Thus it eliminates the process and needs for human voting. Through blockchain, there won’t be any fraudulent voting. It will also be difficult to commit any fraud when the system is being handled through blockchain.

To understand the fundamental and detailed concept of blockchain. It is important to understand the core concept of a database. A collection of information or data that is stored on the computer system by electronic means is known as a database. The structure of the database is in the form of a table. This allows the user to search for any record that they want. Either they need to filter any record or even delete it. The tables make this process a lot easier. The databases are designed for a larger corporation such that any user can filter, access or manipulate the data whenever they want.

For large databases, it is important to have powerful computers as only then it will be possible to store information. If one needs to use the computing resources and storage space that will be required by many users so that they can access the database at the same time. Then these servers may often be constructed with thousands of computers. Often the business owners are the ones that deal with large databases for their business. They tend to appoint an individual that excels in handling the databases and will manage it for them.

What is blockchain?

To describe the process of blockchain in simple terms, a blockchain is like a computer file in which data is stored. Yet, with blockchain one won’t have to worry that their data may change or get hacked. Blockchain is a type of distributed ledger technology. DLT provides allows many users to manage the decentralized database. As a result, the data that is in the blockchain is distributed through many computers, making it decentralized. One of the major aspects that makes the blockchain so revolutionary and transformative is decentralization.

As the records are not accessed by a single member of a company or even the central administrator of the government. These records can be verified by the user consensus. Several transactions are going on in each chain of the block. If there is a new transaction that happens then the record of that specific transaction is added to the ledge or each user. This also means that if even a single block in the chain is modified then it will be clear that the chain has tampered. As the whole blockchain is transparent this is what makes it safe too. The hackers are unable to target a single core point that they can attack. If the hackers try to attack then they will have to alter every block in the chain, through all distributed versions of the chain.

What is cryptocurrency?

Cryptocurrency is digital money that is decentralized and made on blockchain technology. Bitcoin and Ethereum are well-known cryptocurrencies and also part of the blockchain that is expanding as blocks being added to the chain. Blockchain aims to allow the information to be digitally stored and distributed without being edited. While blockchain has been used to transparently record payments. Yet, it can record several data points. These records can be in any form. Such as they can be in the form of different type of transactions, number of identifications and also votes in an election.

In Cryptocurrency such as bitcoin, the blockchain is used in a way that all users have control of the information. It is not specified to a single user or even some specific group.

How blockchain is related to cryptocurrency?

Different projects are being carried out with the help of blockchain. Using the blockchain will get the most secure result other than having different records piled up. The use of blockchain to vote in democratic elections is a very strong example. Each citizen of the country will be provided with a single cryptocurrency or a token under the voting system taking place. For the candidate, they will have a unique wallet address. The voters will need to send their token or their cryptocurrency to the address that they wish to vote for. As the blockchain is secure and traceable. Thus it eliminates the process and needs for human voting. Through blockchain, there won’t be any fraudulent voting. It will also be difficult to commit any fraud when the system is being handled through blockchain.

Source: https://medium.com/@shifashah673/what-is-a-blockchain-and-how-it-is-related-to-cryptocurrency-ec8d8aea0fcb?source=rss——cryptocurrency-5