2. WHAT IS BLOCKCHAIN TECHNOLOGY?
1. Continuously growing list of records, called blocks, which are linked and
secured using cryptography. In plain words, chain of blocks.
2. Originally devised for the digital currency, Bitcoin.
3. Created by a single person or a group of person under the pseudonym,
Satoshi Nakamoto, who is/are said to be from Luxembourg.
3. PRINCIPLES OF BLOCKCHAIN
Three major principles-
1) Private key cryptography
2) A distributed network with a shared ledger
3) An incentive to service the network’s transactions, record-
keeping and security
9. The data mining is now started and the data miners compete
among themselves to confirm this transaction by solving
mathematical puzzles that is automatically created.
The data miner who stands first to solve this puzzle gets
awarded with Bitcoins and then the block gets broadcasted to
every other nodes inside the distributed ledger system.
The block is now permanently added to the blockchain or
chain of blocks. It can never be altered and the transaction is
complete.
10. WHY USING BLOCKCHAIN OVER TRADITIONAL BANKING SYSTEM?
1 . Blockchain technology can never be hacked as it relies on the
broadcast method and distributed shared ledger system.
Traditional banking can be hacked because it uses centralized
ledger system and less verifying entity than the blockchain.
2. Currently, Bitcoin is secured by 3,500,000 TH/s which is more
than the 10,000 largest banks in the world combined and has
6000 computers (verifier) for a transaction to be confirmed.
11. 3. Very low fees.
4. Total user anonymity inside the transaction network.
