part 2 #StartInvestingInCrypto
we continue talk about Blockchain
The blockchain is used for the secure transfer of items like money, property, contracts, etc. without requiring a third-party intermediary like a bank or government. Once data is recorded inside a blockchain, it is very difficult to change it.
The blockchain is a software protocol (like SMTP is for email). Hence, Blockchains could not be run without the Internet. It is also called meta-technology as it affects other technologies. It is comprised of several pieces: a database, software application, some connected computers, etc.
Sometimes the term is used for Bitcoin Blockchain or The Ethereum Blockchain, and sometimes, it’s other virtual currencies or digital tokens. However, most of them are talking about distributed ledgers.
Blockchain is not Bitcoin, but it is the technology behind Bitcoin
Bitcoin is the digital token, and the blockchain is the ledger to keep track of who owns the digital tokens
You can’t have Bitcoin without blockchain, but you can have a blockchain without Bitcoin.
Blockchain Architecture
Let’s understand the Blockchain architecture by understanding its various components:
A Blockchain is a chain of blocks that contain information. The data which is stored inside a block depends on the type of blockchain.
For Example, A Bitcoin Block contains information about the Sender, Receiver, number of bitcoins to be transferred.
The first block in the chain is called the Genesis block. Each new block in the chain is linked to the previous block.
Understanding SHA256 – Hash
A block also has a hash. A hash can be understood as a fingerprint which is unique to each block. It identifies a block and all of its contents, and it’s always unique, just like a fingerprint. So once a block is created, any change inside the block will cause the Hash to change.
Therefore, the Hash is very useful when you want to detect changes to intersections. If the fingerprint of a block changes, it does not remain the same block.
Continue to part 3 #StartInvestingInCrypto