What You Need to Know About The Blockchain Technology – A Fun Approach.

In a world with so many advancements in technology and with increasing number of people making cross-border transactions through digital means. We need to keep up with the latest trends in technology. And one of the most talked about technology is the blockchain technology because of its association with cryptocurrencies such as Bitcoin .

So, in this post, I would explain what blockchain is and how blockchain works using a fun-approach.

What Is Blockchain?

Using your imagination, the picture that comes to your minds when you hear the word blockchain will probably be a set of concrete blocks laid next to each other and linked together by chains, right? You are not totally wrong. Well, these blocks are made up of data and not stones.

Hence, blockchain is a database that keeps records of digital transactions. Each block can be considered as a file that keeps details of a specific digital transaction.

How Does Blockchain Work?

For this explanation, rather than using a scenario of sending digital money (Bitcoin) to a friend who lives abroad (which is actually the most popular scenario). We will be taking a fun approach. We all love to chat, don’t we? So, here is the scenario:

Scenario A:

ChattyWeb is a messaging service just like the WhatsApp Web that enables you send your messages using the blockchain technology. Last week, you informed your friend that you would be checking up on him via ChattyWeb.

Ready to be a blockchain guru? Now, let’s discuss how it works:

1. You have connected your computer to the network and typed ‘Hey, how are you?’ on the ChattyWeb application. Once you hit the ‘send’ button, a block is created. This block carries the details of your message (it can be the time you sent the message, the message/chat, etc).
2. This block will be broadcasted to the entire participants on the network to check if this message is actually coming from you. This is the verification phase.
3. The participants on the network will be put to a test for the message to be verified. This test involves solving a mathematical problem which requires a lot of electricity, time and money. The reason for this test is to find the bad guys (hackers!). So, this ensures that your messages are secured.
4. These participants on the network are called miners.
5. Once a miner figures out a solution to the mathematical problem, the miner is given a reward. Using our scenario, an emoji will be sent to that person.
6. A good percentage of miners will agree to that one solution provided by the miner who solved the problem. Then, the block contains your message details is termed valid! At this point your message has been delivered to your friend.
7. Now that your block is valid, it will now be given a number which serves as its unique identification number and it will be added to the database where other blocks are kept. This database that keeps records of everyone’s messages(blocks) and which is publicly accessed and monitored by the participants on the network is blockchain.
8. Remember the number given to your block? This number will be stored permanently in the next block. And your block will also store the number of the block before it. This makes it difficult for anyone to change data in any block.

Let’s Take These Points Home

• The blockchain technology offers a secured, decentralised, unaltered and a reliable platform for sensitive transactions.

• The first block in the blockchain does not hold any data why? Because there is no block before it.

To read more about blockchain, make a quick stop at Hacknoon.

Thanks for reading and sharing!