If you have read our previous article Everything About Bitcoin or any other article about Bitcoin, you know that the names Bitcoin and Blockchain are intertwined. In the article Everything About Blockchain, we want to discuss Blockchain in more detail.
In simple terms, blockchain is a type of database for storing information that, while being transparent, has mechanisms that make it almost impossible to manipulate and change information.
Everything about blockchain
Blockchain in simple terms
Blockchain is a technology that we use to record a specific type of data.
In fact, we can say that blockchain is a type of database, but with different characteristics than regular databases.
The most important feature of blockchain is that it allows us to share information without the need for a central authority.
Also, with proper decentralization, it is almost impossible for one or more people to change its information.
Everything About Blockchain - Blockchain History
Blockchain as it exists today was first created by an unknown individual or individuals whom we know as Satoshi Nakamoto.
It was created in 2008 and its use and function in Bitcoin is to record transactions and user balances.
Likewise, information is recorded in encrypted form on the blockchain and was initially built with the mindset of being decentralized.
Information about the Bitcoin blockchain
- In the Bitcoin blockchain, a block is created every 10 minutes and pending transactions are confirmed.
- All transactions and wallet (user) balances are recorded on the blockchain, and the wallet you have receives your wallet information from the blockchain.
- When you submit a transaction, your wallet actually transmits it to the blockchain.
- The size of each Bitcoin block is determined by the number of transactions (information that needs to be recorded), but the maximum size of each block is 4 megabytes.
- Blocks are created by miners and they receive a reward for each block.
- The maximum number of Bitcoins that can be mined is 21 million, and the block reward is halved every 4 years.
- The reward for each block, or Bitcoin block reward, was initially 50 Bitcoins and eventually became zero.
- When the block reward reaches zero, miners only receive transaction fees.
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Everything About Blockchain - Types of Blockchain
Blockchains generally fall into the following four categories:
- Public blockchains (usually decentralized)
- Private blockchains (fully centralized)
- Hybrid blockchains (usually centralized)
- Consortium blockchains (semi-decentralized)
Public blockchains
The first type of blockchain we will discuss in the article Everything About Blockchain is the common type, the Public type.
Anyone can access and use these types of blockchains, and they usually have a decentralized structure.
Such as Bitcoin or Ethereum networks which are decentralized.
Private blockchains
Blockchain networks that are usually launched on private networks and implemented by individuals or organizations fall into this category.
The use of this type of blockchain is not open to the public and only people within that organization and companies have access to it.
(Suggested article: Cryptocurrency Wallets)
Hybrid blockchains
There are networks where access to some information is open to the public, and access to some more sensitive information is not possible for everyone.
In this type of network, information is presented in a categorized manner.
Consortium blockchains
This type of blockchain, which we discuss in the article Everything About Blockchain, is a combination of public and private, in the following way:
Control of the entire blockchain is not solely in the hands of one person or group of people, and the verification of transactions and the creation of blocks are carried out by several people or groups of people.
Blockchain uses
Blockchain is used in the following areas:
- Receive and transfer money digitally
- Smart contracts
- Securities
- Recording and maintaining information
- Internet of Things
- Voting and more.
(Recommended: Guide to Choosing the Best Cryptocurrency Wallet)
51% Attack - Everything About Blockchain
A 51% attack is an attack in which the attackers control more than half of the hash rate or power in the network.
Using tricks in this attack, attackers can manipulate the network and prevent new transactions from being confirmed.
In some cases, they will also have the option of returning the sent currencies to the originating wallet, which they usually do with the intention of spending that currency again.
This last case is called Double-Spend.
The impact of quantum computing on blockchain
Now that you have become somewhat familiar with blockchain and its types in the article All About Blockchain, it would be a good idea to also mention the topic of quantum computers and their impact on blockchain.
Most experts believe that if quantum processing becomes practical, it will pose a major threat to today's blockchains, potentially disrupting their performance and even destroying them.
The reason for this belief is that blockchains use common encryption, such as the encryption used to create wallets in the Bitcoin cryptocurrency.
In fact, it can be said that if quantum computers are created, it will be possible to break the encryption of wallets and obtain the private keys of wallets easily and within minutes.
Of course, there is always the possibility of strengthening the cryptographic system, and a solution to this problem will probably be found by the time quantum computing becomes a reality.
Summary of the article Everything about Blockchain
In this article, we tried to provide you with brief and useful information about blockchain.
Of course, this article will definitely be updated over time and other useful information will be included.
