What is Blockchain and Blockchain Technology? How does it work and how secure is it?

Meaning that the data of cryptocurrency is kept in these blocks. Different boxes contain currency, ie data, and they are linked to each other.

 

It is made up of two words. The chain of the first block and the second chain. Block means a lot of data blocks in Blockchain technology.

In the last two parts, we told you about the ABCD of cryptocurrency. In the first part, we told you about the complete ABCD of Cryptocurrency. 

In the second part, information was given on its possibilities in India. In the third part, we are telling about the technology of cryptocurrency through which it runs. That is, we are telling about Blockchain.

What is Bitcoin?

As we have taken the name of Bitcoin in both the earlier parts. It is a type of cryptocurrency. Cryptocurrency means virtual currency. Which runs on Blockchain. Everyone has heard the name bitcoin for the past few months.

You will also be surprised to know that while the year 2020 was a year of troubles for the country and the world, on the other hand, Bitcoin made its All-Time High this year. 

The value of bitcoin can be estimated from the fact that in 2010 the price of 1 bitcoin was less than just 0.06 US dollars (about 2.85 rupees), but now the price of one bitcoin is 30 lakh rupees. 

Our expert Kshitij explains that this has been possible because of Blockchain. Because it is so precious, secure, and popular because of blockchain. 

What do experts have to say?

Now you must be wondering what is this blockchain? In response to this, Kshitij explains that it is made up of two words. The chain of the first block and the second chain. 

Block means a lot of data blocks in Blockchain technology. Meaning that cryptocurrency ie data is kept in these blocks. Different boxes contain currency, ie data, and they are linked to each other. 

A long chain of data gets created. As new data arrives, it is entered in a new block. Once the block is filled with data it is appended to the previous block. Similarly, all the blocks are connected to each other.

What is Data?

Each block contains the data, the hash, and the hash of the previous block. Now, what are these three things? Know this too. The data that resides in the Bitcoin blockchain contains the details of the transaction. 

Information like sender, receiver, and account are recorded in it. In these data blocks, data is encoded through cryptography technology and these blocks join each other to form a long chain. 

Each block contains a cryptographic hash of its previous block, a timestamp, and transaction data. Each block is connected to its next block. 

What is Hash?

You can think of a hash as a biometric which is unique for everyone. That is, it is a kind of code. It is as unique as your thumb impression. If there is any change in the block, then it changes the hash code. All the blocks are virtually connected to each other. 

This is a kind of system in which there is no scope for tampering. If you change the data in one block, then you will have to change the data in the other block as well.  

What happens after finding the hash?

When a miner secures a block by finding a strong hash, it is added to the blockchain and verified by other nodes in the network. This process is called consensus. 

What happens after consensus is reached?

If the consensus is reached, the block is confirmed to be secure. If it is found to be correct, then the crypto coin is given to the miner who secures it. It is a reward that is considered to be proof of work.

What is crypto mining?

Buying through cryptography is called Cryptocurrency Mining because every piece of information has to be created digitally in the database. Those who do this mining are called miners. 

Can it be hacked or tampered with?

Blockchain can be used not only in a currency like Bitcoin but also in many other sectors. It is a secure, safe, and decentralized technology that is almost impossible to hack or tamper with. But hackers can do anything.

What is Blockchain Technology?

In response, Gaurav Garg says that it is a kind of exchange process. Which runs on the data block. Each block is protected by encryption because these blocks are connected to each other through electronic means. This is very old technology. It was first adopted in 1991 by Stuart Huber and W Scott Stornato. 

Also Read - PM on Cryptocurrency: Government cannot completely ban Cryptocurrency, Know the reason

The main purpose of its technology was to timestamp digital documents so that they could not be tampered with in any way. After this, in 2009, Satoshi Nakamoto revolutionized the world by inventing Bitcoin using blockchain. 

What is the difference between Bitcoin and Blockchain?

There is a difference between the ground and the sky in both Blockchain Technology and Bitcoin. That is, both are completely different. 

Actually, Blockchain is a technology, a platform where not only a digital currency but also anything can be digitized and its record can be kept. That is, blockchain is a digital ledger. 

At the same time, Bitcoin is a digital medium, through which some things can be sold and bought. Although it is wrong to call it a currency because it has no value in the real world. 

Kshitij adds that however, bitcoin is just one example of a cryptocurrency; Other cryptocurrency networks are also powered by blockchain technology.

What's going on in China regarding cryptocurrencies?

In recent weeks, China has taken a tough stance on crypto mining by shutting down operations in at least five provinces or regions rich in coal or hydroelectric power, with experts believing that China's own environmental policy is a key factor in crypto mining action.

In particular, China's carbon neutrality policy created an energy shortage within the country due to a sharp reduction in coal-fired electricity, which contributed more than 57% of the country's energy use.

What is the status of cryptocurrencies in which countries?

Gaurav says that the mining of cryptocurrency is banned in countries like China and Thailand. When China imposed the ban, the rates of bitcoin fell sharply. After that, it has now been banned in Thailand as well. 

The Thai Securities and Exchange Commission (SEC) has banned cryptocurrencies and non-fungible tokens (NFTs) over concerns about excessive betting. 

Horizon says that in recent weeks, China has taken a tough stance on crypto mining by shutting down operations in at least five provinces or regions rich in coal or hydroelectric power. 

The experts behind this belief that it has been done because of China's own environmental policy. However, cryptocurrencies will be legal or banned in India. The government has not said anything openly on this yet.

How Blockchain Helps Children's Education?

There has been speculation for some time about the potential use of blockchain in education. 92% of teachers say that technology has a big impact on the way students learn and interact with each other. 

One of those technologies that have positively impacted the learning process is blockchain. Learning Economy, a Washington DC-based non-profit company is using blockchain. 

Using bitcoin's blockchain technology, the company is exploring a way to securely share skills, education, and work experience.