It is the technology after Bitcoin.It is digital transformation where data is saved in digital blocks and all blocks are interlinked.”Blocks” in Blockchain made of digital pieces of data. It is categorized in 3 forms :-
I. Blocks stores the information about transactions ,we can say date, time and amount in any currency from where you belongs to of your most recent transaction in Bank.(This Example is just to give you an idea of Blockchain how it works).Many of U.K and U.S.A bank have already get into in this Technology.
II. Blocks stores information of user who did transactions. A block for your purchase from anywhere would record your name with company name.
III. Blocks store information that differentiate them from other blocks. Block stores a unique code called a “hash” that tell us apart from other blocks.Even though your new transaction will be identical like your old transactions but we can differentiate them through there unique codes.
Before Bit Torrent and Bitcoin came in market,we all are used of centralized concept.You have such an entity where all data saved in one place you have to separately interact with this entity to gather information or data whatever you require.When you do Google search it took your request and respond you back with relevant information.Its is simple client server.
A client server representation is best example for this to explain:-
Centralized systems concept is well good in market, however they have several security breach.
- It is centralized database where all the data is stored in one place. This makes easy target for hackers.
- If centralized system get shut down somehow due to some technical issues then how someone will access the information.
- If the centralized system needs to go under software upgrade mode, it effects whole system which will be more complicated to retrieve the information.
- What will happen in that scenario if somehow whole centralized system get corrupted or effected.Then whole centralized system information will get compromised.
What if we replace this centralized system concept to decentralized concept system.In a decentralized system, the bulk of data will not gathers at one place. In this small bulk of information get stored in blocks.