What is Blockchain?

Blockchain is the name of the technology in which cryptocurrencies including cryptocurrencies such as Bitcoin and Ethereum are developed. Blockchain is a distributed ledger. These are similar to accounting records (ledgers) where banks track digital transactions using traditional currencies. Unlike banks' ledgers, Blockchain does not have a central authority. Anyone on the network can see all transactions. This provides security, transparency and trust, which is the exciting part of cryptocurrencies. Anyone can see and modify a Dropbox document that everyone has access to. The difference between this and Blockchain is that Blockchain uses a consensus algorithm so that the changes are accurate and consistent and no one abuses the process. The basis of this consensus algorithm is cryptography, that is, the science of cipher, and changes can thus be approved. The first and most important application example of blockchain is Bitcoin. The Bitcoin ledger is distributed throughout the network. Everyone sees and trusts what can happen on the network. Transactions are recorded in Bitcoin's Blockchain ledger and posted publicly across the entire Bitcoin network. Updated notebooks are copied thousands of times by numerous digital devices. All transactions are confirmed and no errors are allowed. If any change in the network is approved by at least 51%, that change creates permanent change to the Blockchain. Since transactions on the blockchain are controlled by a large number of computers around the world, you can set up your computer as part of the network and use it to confirm transactions or even mine Bitcoin. People don't just use Blockchain for cryptocurrencies. You can theoretically store all kinds of data on the Blockchain. As a matter of fact, companies in various sectors use Blockchain in various fields such as tracking goods and services.

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