What is blockchain?
Etymologically, the blockchain means chained block. The blockchain is, therefore, a register in which the data that is collected, arranged (forming a block), and chained to each other is recorded.
To go even deeper:
Blockchain is a special type of registry that cannot be falsified or modified
- A database that contains the history of all exchanges between its users since its creation
- Managed by a P2P (peer-to-peer) network collectively adhering to a protocol
- Once recorded, the data of a given block cannot be modified retroactively without modifying all the following blocks, which requires a consensus of the majority. As a distributed ledger technology, blockchain has the ability to provide networks and organizations with improved security, transparency, accountability, and efficiency.
- Technology strengthens confidentiality and removes the need for trust.
How does blockchain work?
The operation of the blockchain is really easy to understand because it is based on the P2P network. Indeed, to explain how things are going with the blockchain we will take the example of two people, A and B.
To begin with,
- A makes some transactions to B
- The transactions are grouped in a block
- The block is validated by the nodes of the network using cryptographic techniques.
- The block is dated and added to the blockchain to which all users have access
- B receives the transaction from A.
Remember that Each block contains:
- The cryptographic hash of the previous block
- Time and date of the transaction
- The data of the transaction
Why is blockchain so important?
- The blockchain is a database distributed and accessible by all: The Blockchain lays the foundations for a new world because it gives everyone access to all the areas that were previously reserved for a certain elite
- A transparent and tamper-proof registry: It allows decentralized, transparent, and tamper-proof management
- Based on verification and not trust: It is a system based on evidence and not on blind trust
IMPORTANT TO KNOW
- Any blockchain necessarily works with a programmable currency or token (token).
- Transactions made between network users are grouped by block. Each block is validated by the nodes of the network called "miners" according to the different consensus.
Potentials of the Blockchain
The use of the Blockchain can be classified into 3 categories:
- Applications for asset transfer: Monetary use but not only: securities, votes, shares, bonds..)
- Applications as a registry: It ensures better traceability of products and assets.
- Smart Contracts: These are autonomous programs that automatically execute the terms and conditions of a contract, without requiring human intervention once started.
Popular Blockchain Networks:
- Blockchain Bitcoin
- Blockchain Ethereum
- Blockchain BNB
To conclude, Blockchain is a technology that revolutionizes the whole world. It can be used in all fields of activity whether in finance, culture, governments, or small or medium-sized enterprises. In addition, it is also useful in traditional communities in the management of family documents, Inheritance sharing, It is also useful for schools, universities, and training centers to issue certificates that cannot be falsified
About BNB CHAIN
Launched in September 2020, BNB Chain is a blockchain service that allows developers to build their own decentralized apps using smart contracts. The original Binance Chain wasn’t built to allow such functionality, but the BNB Chain has been designed to provide the same kind of speedy transactions while also greatly expanding the available features and capabilities. It’s also compatible with the Ethereum Virtual Machine (EVM), which means it’s capable of running dapps ported over from Ethereum.
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