What Is Block Chain?
ever wonder if there's an easier way to
complete transactions without having to
deal with online wallets banks and
third-party applications well it's
possible thanks to blockchain here's
everything you need to know about
blockchain imagine four friends Jack Ted
Sam and Phil meet up for dinner after
they're done
Jack pays the bill and all of them
decide to split the expense amongst each
other now on the next day when Phil
sends his chair to Jack via online money
transfer the transaction goes through
without a hitch then Ted and Sam's and
their respective shares to Jack but
their transactions don't go through the
failed transaction sites some issues at
the bank
that's when Jack comes to know about the
many ways a bank transaction could fail
it could be due to technical issues at
the bank one of their accounts were
hacked daily transfer limits being
exceeded in sometimes additional charges
like transfer charges associated with
transferring money to solve these
problems the concept of cryptocurrency
came into existence cryptocurrencies are
a form of digital or virtual currency
that run on a technology known as
blockchain thanks to blockchain crypto
currencies are immune to counterfeiting
don't require a central authority and
are protected by strong and complex
encryption algorithms and in a market of
more than thousands of crypto currencies
like litecoin aetherium c cache and so
on one reigned supreme bitcoin now let's
go back to our previous example and have
filled Ted and Sam Sann Jack to bitcoins
each as their contribution to the
previous night's dinner let's assume
fill Ted and Sam have three bitcoins in
reserve while Jack has five first phil
simms two bitcoins to jack a record is
created in the form of a block the
transaction details between them is
permanently inscribed in this block this
record also holds the number of bitcoins
each of the friendzone
so after Phil's transaction jack has
seven bitcoins
while phil has one following this Sam
and Ted's and two bitcoins to Jack a new
block is created for each of these
transactions these blocks hold the
transaction details as well as how many
bitcoins Sam Ted and Jack have in
reserve these blocks are linked to each
other as each of them takes reference
from the previous one for the number of
bitcoins each brand owns this chain of
Records or blocks is called a ledger and
this ledger is shared among all the
friends which acts as a public
distributed ledger this forms the basis
of blockchain so what happens when phil
has only one Bitcoin left and he tries
to send two more bitcoins to Jack the
transaction will not go through this is
because all his friends have copies of
the ledger and it's clear that phil has
only one Bitcoin left his friends will
flag this transaction as invalid a
hacker will not be able to alter the
data in the blockchain because each user
has a copy of the ledger the data within
the blocks are encrypted by complex
algorithms all of this is made possible
with the help of blockchain technology
blockchain can be described as a
collection of records linked with each
other
strongly resistant to alteration and
protected using cryptography now let's
have a closer look at the Bitcoin
transaction between Jack and phil and
find out how it works every user in the
Bitcoin network has two keys a public
key and a private key the public key is
an address that everyone in the network
knows of like an email address of a user
the private key is a unique address that
only the user has knowledge of something
like a password first bill passes the
number of bitcoins he wants to send to
Jack along with his and Jack's unique
wallet address through a hashing
algorithm all of this is part of the
transaction details these details are
encrypted using encryption algorithms
and using fills unique private key this
is done to digitally sign the
transaction and to indicate that the
transactions came from Phil this output
is now transmitted across the world
ever wonder if there's an easier way to
complete transactions without having to
deal with online wallets banks and
third-party applications well it's
possible thanks to blockchain here's
everything you need to know about
blockchain imagine four friends Jack Ted
Sam and Phil meet up for dinner after
they're done
Jack pays the bill and all of them
decide to split the expense amongst each
other now on the next day when Phil
sends his chair to Jack via online money
transfer the transaction goes through
without a hitch then Ted and Sam's and
their respective shares to Jack but
their transactions don't go through the
failed transaction sites some issues at
the bank
that's when Jack comes to know about the
many ways a bank transaction could fail
it could be due to technical issues at
the bank one of their accounts were
hacked daily transfer limits being
exceeded in sometimes additional charges
like transfer charges associated with
transferring money to solve these
problems the concept of cryptocurrency
came into existence cryptocurrencies are
a form of digital or virtual currency
that run on a technology known as
blockchain thanks to blockchain crypto
currencies are immune to counterfeiting
don't require a central authority and
are protected by strong and complex
encryption algorithms and in a market of
more than thousands of crypto currencies
like litecoin aetherium c cache and so
on one reigned supreme bitcoin now let's
go back to our previous example and have
filled Ted and Sam Sann Jack to bitcoins
each as their contribution to the
previous night's dinner let's assume
fill Ted and Sam have three bitcoins in
reserve while Jack has five first phil
simms two bitcoins to jack a record is
created in the form of a block the
transaction details between them is
permanently inscribed in this block this
record also holds the number of bitcoins
each of the friendzone
so after Phil's transaction jack has
seven bitcoins
while phil has one following this Sam
and Ted's and two bitcoins to Jack a new
block is created for each of these
transactions these blocks hold the
transaction details as well as how many
bitcoins Sam Ted and Jack have in
reserve these blocks are linked to each
other as each of them takes reference
from the previous one for the number of
bitcoins each brand owns this chain of
Records or blocks is called a ledger and
this ledger is shared among all the
friends which acts as a public
distributed ledger this forms the basis
of blockchain so what happens when phil
has only one Bitcoin left and he tries
to send two more bitcoins to Jack the
transaction will not go through this is
because all his friends have copies of
the ledger and it's clear that phil has
only one Bitcoin left his friends will
flag this transaction as invalid a
hacker will not be able to alter the
data in the blockchain because each user
has a copy of the ledger the data within
the blocks are encrypted by complex
algorithms all of this is made possible
with the help of blockchain technology
blockchain can be described as a
collection of records linked with each
other
strongly resistant to alteration and
protected using cryptography now let's
have a closer look at the Bitcoin
transaction between Jack and phil and
find out how it works every user in the
Bitcoin network has two keys a public
key and a private key the public key is
an address that everyone in the network
knows of like an email address of a user
the private key is a unique address that
only the user has knowledge of something
like a password first bill passes the
number of bitcoins he wants to send to
Jack along with his and Jack's unique
wallet address through a hashing
algorithm all of this is part of the
transaction details these details are
encrypted using encryption algorithms
and using fills unique private key this
is done to digitally sign the
transaction and to indicate that the
transactions came from Phil this output
is now transmitted across the world
using Jack's public key with this the
message or transaction can be decrypted
only by Jack's private key which only
jack has knowledge of different crypto
currencies use different hashing
algorithms while Bitcoin use
is the sha-256 algorithm etherium which
is also a famous cryptocurrency uses one
known as ether this transaction and
several other similar ones are taking
place all around the world these
transactions are validated and then
added block by block the people who
validate these blocks are called miners
for a block to be validated and added to
a blockchain miners need to solve a
complex mathematical problem the miner
who solves this first adds the block to
the blockchain and is rewarded with 12.5
bitcoins the process of solving the
complex mathematical problem is called
proof of work and the process of adding
a block to the blockchain is called
mining with this Phil and Jax wallets
are updated just like every person in
the network who has completed a
transaction now that you know about
blockchain and it's important concepts
time for a small quiz what is the
concept of blockchain that ensures data
cannot be altered by any of the users
within the network a public distributed
ledger be proof of work see proof of
stake D hash encryption let us know what
you think is the right answer in the
comments below three lucky winners will
get Amazon gift vouchers details are
mentioned in the description below let's
have a look at how Walmart uses
blockchain to provide its customers with
better service Walmart was facing
problems in delivering quality products
to its customers they were facing a high
return rate and large amounts of refunds
due to their products bad quality they
were unable to determine the point of
failure in the supply chain which
started from farm to storage to
transportation to processing all the way
to the customer then Walmart adopted
blockchain technology with blockchain
the quality of the goods at each step
was permanently inscribed within a block
for example when a customer Flags a
product has damaged it can be correctly
identified where the product got damaged
in the entire supply chain thus helping
Walmart to identify the problem areas
and fixing them
this is just one of several ways
blockchain is used in real-life
applications can you think of any others
let us know in the comments down below
that's all for now
using Jack's public key with this the
message or transaction can be decrypted
only by Jack's private key which only
jack has knowledge of different crypto
currencies use different hashing
algorithms while Bitcoin use
is the sha-256 algorithm etherium which
is also a famous cryptocurrency uses one
known as ether this transaction and
several other similar ones are taking
place all around the world these
transactions are validated and then
added block by block the people who
validate these blocks are called miners
for a block to be validated and added to
a blockchain miners need to solve a
complex mathematical problem the miner
who solves this first adds the block to
the blockchain and is rewarded with 12.5
bitcoins the process of solving the
complex mathematical problem is called
proof of work and the process of adding
a block to the blockchain is called
mining with this Phil and Jax wallets
are updated just like every person in
the network who has completed a
transaction now that you know about
blockchain and it's important concepts
time for a small quiz what is the
concept of blockchain that ensures data
cannot be altered by any of the users
within the network a public distributed
ledger be proof of work see proof of
stake D hash encryption let us know what
you think is the right answer in the
comments below three lucky winners will
get Amazon gift vouchers details are
mentioned in the description below let's
have a look at how Walmart uses
blockchain to provide its customers with
better service Walmart was facing
problems in delivering quality products
to its customers they were facing a high
return rate and large amounts of refunds
due to their products bad quality they
were unable to determine the point of
failure in the supply chain which
started from farm to storage to
transportation to processing all the way
to the customer then Walmart adopted
blockchain technology with blockchain
the quality of the goods at each step
was permanently inscribed within a block
for example when a customer Flags a
product has damaged it can be correctly
identified where the product got damaged
in the entire supply chain thus helping
Walmart to identify the problem areas
and fixing them
this is just one of several ways
blockchain is used in real-life
applications can you think of any others
let us know in the comments down below
that's all for now
thank you for watching and stay tuned
for more
you
