What is Blockchain ?

 

What is Blockchain ?

* Table of contents

1. What is Blockchain ?

2. Blockchain Application

3. How does Blockchain work?

4. What is Blockchain encryption ?

5. How to encrypt Blockchain ?

1. What is Blockchain ?

Blockchain is a distributed ledger that is shared among the nodes of a computer network.

It is a type of shared database that differs from a typical database in the way that it stores information; blockchains store data in blocks that are then linked together via cryptography.

The innovation with a blockchain is decentralized blockchains , which helps the data entered is irreversible. That guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.

Besides, all transactions can be transparently viewed by either having a personal node or using blockchain explorers that allow anyone to see transactions occurring live. Each node has its own copy of the chain that gets updated as fresh blocks are confirmed and added.

Of course, the records stored in the blockchain (as well as most others) are encrypted. This means that only the owner of a record can decrypt it to reveal their identity (using a public-private key pair). As a result, users of blockchains can remain anonymous while preserving transparency.

2. Blockchain Application

First proposed as a research project in 1991, the blockchain concept predated its first widespread application in use: Bitcoin, in 2009. In the years since, the use of blockchains has exploded via the creation of various cryptocurrencies, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts.

Example: Cryptocurrency, Digital Voting, Food Safety, Wills and Inheritance, Tracking Prescription Drugs and Medical Recordkeeping, Copyright and Royalty Protection, Supply Chain and Logistics Monitoring, NFT Marketplaces, Real Estate Processing Platform, ...

3. How does Blockchain work?

A blockchain lends the nature of its storage by its name, it is indeed a chain of sorts. A blockchain collects information together in groups which are known as blocks. These blocks have certain storage capacities and are linked to other blocks of information which in turn forms the chain of information and data. Once new information is added, it continues to build on the chain of blocks and is strung together.

The strung-together nature of a blockchain lies in contrast to typical data which is a table. These are known as decentralised blockchains because they are immutable in nature. This makes the nature of a blockchain irreversible and unable to be changed once data has been stored. It is essentially a timeline of data storage, which is so popularly used with transactional data. Each block is accurately time-stamped once it is added to the chain. This highlights the accurate nature of this type of data storage and becomes a ledger for all the data types that have come through the blockchain and resolved any discrepancies.

4. What is Blockchain encryption ?

The secure nature of blockchain means that the encryption of blockchain technology is very much a heightened security measure. Blockchain encryption is the prevention of sensitive information from getting into the wrong hands and being misused or forged. Because the nature of blockchain is very mich lies in data not being able to be edited or removed so the data must be very much protected. All the data is verified, uploaded and secured by way of encryption. The way that blockchain and encryption security works are based on an algorithm that must be solved as a way for a piece of data to be verified when it comes to being added to a blockchain. This ensures that security measures are taken before the stay is even stored.

5. How to encrypt Blockchain ?

There are several methods of encryption that exist such as 40-bit encryption which was easily broken through or Symmetric Encryption Cryptography can encrypt a raw message at the source but the disadvantage of the key being shared widely.

Another form of encryption is Asymmetric Encryption Cryptography which uses two different keys, one which is public and one which is private. The two separate keys are used for both encryption and to decrypt any data. The use of the private key is only known by the owner and any data set can be decrypted using the receiver private key. This is considered an even more secure version of blockchain than Symmetric Encryption Cryptography because fewer people have access to the key that is needed to be able to decrypt something.

Example:

Transaction

Digital Signature

Conclusion

Blockchain encryption is extremely important to uphold the secure nature of the data. In the future, blockchain encyption means that the encryption of any data will be primary to any application of this type of technology and will be interesting to wait for it.

References:

Blockchain Encryption: What Is It and How It Works

Blockchain Facts: What Is It, How It Works, and How It Can Be Used

Giải thích công nghệ BLOCKCHAIN rất dễ hiểu