There has been a lot of rage about cryptocurrency, especially Bitcoin the last few years. But what about Ether? A 3-year-old currency founded in 2014, which has given tough competition to Bitcoin. Ether is popularly known as Ethereum, a name given to Ethers blockchain.
But with all the world going into a digital currency frenzy, most readers seem to lose track on the underlying technology that makes things possible. So it would certainly be better for our new readers to get a quick and comprehensive refresher about what Blockchain is all about. So before we move towards Bitcoin’s competitor, let’s go through a quick recap on Blockchain.
What is Blockchain?
In simply words it is an ever-growing database with specific data and extraordinary features:
- Data entered in Blockchain database cannot be altered or deleted. Once entered it stays forever.
- No single entity is responsible for database management, it is handled by number of users, each having copy of the data.
To understand things better let’s take example of Google Drive, where multiple users can work on a sheet.
In blockchain a folder is shared with a network of users, if anyone wants to make changes to the shared file he has to make an announcement which is noted by everyone. The content shared with all cannot be altered once locked. The fastest person is rewarded with some amount of digital currency.
Once the file is locked it is added to a folder and a new page is shared with the users. This is an ongoing process that will work like this forever.
As the time passes the pages (blocks) that have the important details (transaction) are added to the folder (chain) thus forming database blockchain.
Also Read: Blockchain: The Underlying Problems
What can we store in blockchain?
Any type of data can be stored in a blockchain a value is assigned to the data stored in blockchain. You can store Peer to peer file system, such as IPFS, decentralized cloud file storage, distributed databases, bigChainDB and Ties DB, financial, insurance and real estate data.
So far, all of this sounds promising and secure. Blockchain technology is actively moving towards each and every sector soon it will be used to store data of every sector.
This is a clear cut example that shows how technology can be disruptive. The concept of decentralized database with a reliable network surely gives a feeling of security where everything is transparent and shared with all the peers. This new technology will hopefully go a long way.
Meta: Still confused about Blockchain? Try this quick read to understand all about Blockchain and how it is expected to change the digital world!