Guide to Blockchain Technology
One of the biggest buzzwords this decade is the blockchain. This technology was invented by a person or a group of people only known by the pseudonym Satoshi Nakamoto. Since then, it has evolved into what most people now associate with cryptocurrencies. At the same time, many people have also devised potential uses for the technology beyond Bitcoin, the most popular digital currency today. An example of this is blockchain ICO, which is a type of crowdfunding done exclusively on the blockchain. Here are some of the most important things that you need to know about the blockchain.
The blockchain ico is essentially a spreadsheet which records transactions that happen in real time, but does not allow anyone to edit a transaction that is already recorded within it. A block is basically collection of data that is added to the blockchain, where each piece of data is connected through the previous one chronologically. This is similar to how a row in a spreadsheet follows another row. The blockchain, thus, is a chain of blocks, or a series of blocks that are connected to each other.
The blockchain is also an online database which anyone in the world who has an Internet connection can access and use. It is digital and decentralized, which means that the blockchain is shared by every computer in the world, and is not just in one single location. There are three primary technologies which make up the blockchain. These include: a private key cryptography, a distributed network that has a shared ledger, and a network servicing protocol. Know the ico definition here!
Cryptographic keys are two-fold: there is a public key and a private key. When two people wish to transact over the Internet, each one of them holds both a public and a private key. When both are combined, it creates a digital signature, which is essentially a strong form of ownership. The public key is how other people are able to identify a user, while a private key provides any user with the ability to digitally authorize transactions that will then be recorded on the blockchain. To read more about the benefits of cyrptocurrency, visit http://www.huffingtonpost.com/news/foreign-exchange/.
The blockchain is not managed by a single person or organization, but by a peer-to-peer network which collectively follows an established protocol for confirming new blocks. Transactions that are recorded on the blockchain are permanent. They cannot be edited or removed. It is impossible to hack or manipulate the blockchain. In order to generate new blocks, mining is done. The blockchain also rewards miners who have generated new currency with incentives or rewards.