Blockchain Technology Explained in 90 words by@gaurav02

Blockchain Technology Explained in 90 words

March 11th 2022 2,120 reads
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Bitcoin is an open-source technology that provides an alternative to the usual middleman for Bitcoin transfers. The middleman is replaced by the ecosystem's communal verification, which offers unprecedented traceability, security, and speed. The implementation and the route to realizing value from such systems are complex, but not much more than that as a notion. Although the Blockchain was designed to handle Bitcoin, it may also manage other virtual currencies such as Ether. The "prize" miners will decrease every four years until Bitcoin creation ceases (though estimates suggest this won't happen until 2140!).
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Gaurav Sharma

A writer with a knack for telling interesting stories while effortlessly combining SEO strategies

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I just attended a business lecture where the Blockchain concept was
discussed. "I'm still not sure what Blockchain technology is..."
one of the attendees said to a colleague as we walked out of the
lecture room at the end of the session.

Many of us are aware that Blockchain is a big issue right now. It's an
issue that's causing a stir. It's an issue that's gaining traction.

In less than 100 words, this is my attempt to describe Blockchain technology's original aim.

On your PC, you (a "node") have a transaction file (a "ledger"). The identical file is on the computers of two government accountants (let's call them "miners"). Your computer sends an e-mail to each accountant as soon as you complete a transaction.

Every accountant is rushing to be the first to see if you can afford it
(and be paid their salary "Bitcoins"). The first to examine and confirm presses "REPLY ALL," adding their reasoning to the transaction's verification ("proof of work"). If the other accountant agrees, everyone's file is updated.

"Blockchain" technology enables this approach.

Is it more complex than that?

Yes, but not much more than that as a notion. The implementation and the
route to realizing value from such systems are complex. Of course,
the preceding example will be highly simplistic to some, but it may
serve as a starting point for others.

In a conventional setting, reliable third parties operate as financial
transaction middlemen. If you've ever transferred money internationally, you'll know that it goes through a middleman (usually a bank). It will typically take up to three days, and the intermediary will charge a fee for doing so, either in the form of an exchange rate conversion or other fees.

The original Blockchain is an open-source technology that provides an
alternative to the usual middleman for Bitcoin transfers. The middleman is replaced by the ecosystem's communal verification, which offers unprecedented traceability, security, and speed.

There are numerous copies of you as "nodes" on a network working
as transaction executors and miners at the same time in the scenario
above (a "public Blockchain"). Before being uploaded to the Blockchain, transactions are grouped into blocks. Miners are paid in Bitcoin for the time it takes to figure out a) if a transaction is genuine and b) what mathematical key to use to link the block of transactions to the correct location in the open ledger.

More Bitcoins stream into the digital money supply as more transactions
are completed. The "prize" miners will decrease every four years until Bitcoin creation ceases (though estimates suggest this won't happen until 2140!). Although the Blockchain was designed to handle Bitcoin, it may also manage other virtual currencies such as Ether.

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by Gaurav Sharma @gaurav02.A writer with a knack for telling interesting stories while effortlessly combining SEO strategies
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