Understanding Blockchain: History, Principles and How It Works

Understanding Blockchain – Is Grameds familiar with blockchain technology? Grameds, particularly those in the IT/IT industry (short for Information and Technology/Information Technology), are undoubtedly aware with the word blockchain, right? There is one surprising fact: it turns out that blockchain technology is highly popular in Indonesia. It turns out that blockchain isn’t just popular among IT experts; it’s also become popular among regular folks.

In a nutshell, blockchain is a technology that underpins the growth of cryptocurrencies as a kind of currency. The most popular forms, such as bitcoin, ethereum, and other crypto forms of the like, are usually exemplified. It should be emphasized that the blockchain’s function or application is not limited to that of a crypto currency; it can also be applied to other industries such as digitalization and technology.

Another way to think about blockchain is as a system that focuses on making the greatest possible use of computing technology in order to create a collection of groups or, as the name suggests, a collection of blocks that are connected to each other. As a result, a collection of interconnected blocks can be used to track the existence of an asset in a business network by storing multiple records of a set of transactions.

Blockchain

Blockchain is a digital transaction that, of course, has an arrangement and is based on the structure of its structure. Recording records from each individual or termed a block will be associated to each other like a chain called a chain with a defined structure. So, the preceding concept of blockchain is incomplete and yet applies in a broad sense.

In this article, Grameds will discover and learn more about what blockchain is. We’ll also encourage Grameds to learn about the blockchain’s brief history, how it works, what it’s used for, the benefits of blockchain, the three principles of blockchain technology, and the differences between blockchain and cryptocurrency. Isn’t it a lot? Just to avoid having to deal with the burden of having to provide information.

Getting to Know Blockchain

Well, Grameds, Blockchain is a collection of numerous data records that are processed or processed by a group of computers in which no entity or any entity exists. By employing the concepts of cryptography, a collection of data blocks or data records is given security and bonded together.

There is no centralized authority or authority in the network it contains. What is the reason for this? This is because a blockchain is made up of many records that are arranged in the shape of a huge notebook. The contents of the ledger will not alter even if the ledger is shared. Furthermore, anyone may examine and access all of the information stored in the ledger by simply looking at it.

Because blockchain is transparent, there is a principle of transparency among the three principles of blockchain technology. Because of this, everything in the blockchain can be seen by other people who are involved as a kind of accountability for their respective activities’ acts.

Aside from all of the aforementioned benefits, blockchain technology is free of transaction and infrastructure expenses. With these benefits, blockchain has been termed or dubbed as the most easy, smart, and effective means to securely transmit information from one person to another and so on, and it operates automatically.

The many blocks stated in it have been verified by multiple computers, and the distribution process is, of course, aided directly by the internet’s support. Various blocks will be added to the chain and then shared on a special network after the computer has correctly authenticated them. After then, a special record will be created automatically, holding the unique history that was created previously as a result of the operation.

A circumstance when Grameds purchases a train ticket through an application or a specific train ticket purchase site can be used as an example. Grameds uses a credit card payment option to complete transactions. That’s when the credit card service provider will take cost-cutting measures to ensure that the transaction goes off without a hitch.

The usage of blockchain can also have a disadvantage, in that the railway operator does not have access to cost-cutting opportunities when processing or processing credit cards. The entire transaction procedure for ticket sales will be shifted to the blockchain. Only prospective passengers with the serving train company are participating in the ticket transaction process in this process.

When purchasing a train ticket, the ticket is referred to as a block. The ticket or block will next go through the following steps before being added to the ticket blockchain. This is similar to when a monetary transaction occurs on the blockchain and is viewed as a unique record, some of which can be validated and others which cannot.

The blockchain in the ticket is a kind of master record of all transactions that take place during the purchase of a specific train ticket, or it may be for the entire railroad network. The record includes transaction history for each ticket that was successfully sold, as well as travel records from previous trips.

Getting to Know Blockchain Literally

The term blockchain is derived from a foreign language and is made up of two terms, namely block and chain. For the words block and chain, the two words can be construed as a group and chain, respectively. The name is intended to describe how the blockchain functions. The blockchain’s operation is to build multiple blocks that are linked together and have features that help with transaction execution.

Blockchain is a chain of distinct blocks ordered sequentially with a concurrent chaining and distribution method, as the name suggests. The three blockchain components, namely the data itself, the hash, and the hash created from the previous block, are followed in a block made of a ledger or interpreted as a ledger and below it.

A Quick Overview of Blockchain

According to Manav Gupta’s book Blockchain for Dummies, blockchain was created to address a critical need for a system that works more effectively, efficiently, cost-effectively, is more secure, and proven safer to perform tasks such as recapping various financial transactions that will occur in the future.

The concept of employing blockchain was conceived in 1991. Stuart Haber and W. Scott Stornetta were two of the people that wrote and published a publication called Journal of Cryptography: How to Time Stamp a Digital Document at the time.

Bitcoin was the first to use blockchain, which was invented in 2009. Satoshi Nakamoto, a Japanese man, was responsible for the development of the blockchain. Unlike money created by a central bank, which is still in the form of traditional money, bitcoin does not have a central power or authority, nor does it have a party seeking to control it.

Bitcoin likes to be activated via a network with peer to peer connections rather than relying exclusively on a central authority in terms of monitoring, acquiring verification, and authorizing transaction requests and processing money receipts.

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