Blockchain is one of the most widely used terms of 2022. As the craze and demand for cryptocurrencies and NFTs are increasing the attention is greatly centred towards blockchain. Bitcoin - A type of cryptocurrency, created with Blockchain technology by an unknown individual who is named Satoshi Nakamoto in the 1990s and hence introduced the concept of blockchain in the world.
So what is blockchain technology?
Blockchain is one of the strongest record-keeping technology or technological formulas that are super safe and impossible to hack. It is considered the safest of all technologies to store any data. The management and storage of information in blockchain differ from traditional databases. The data is stored in blocks that are joined together. Simply described, it is a system that is digital in nature and holds records in multiple blocks at a particular time. All systems or computers in a particular network of blockchain have a copy of the data to prevent it from hacking or foreign access. It is a decentralised type of distributed ledger technology (DLT) that stores encrypted blocks of information.
Once a blockchain is designed, it becomes difficult to change or modify it and is a powerful cybersecurity tool used in various sectors and industries to protect against data breaches and disruptions. It has significantly proved that it helps reduce risks and derive transparency.
How do Blockchains work
Blockchains work on the concept of Smart Contracts and have 3 main elements in a block. One is the “Data or information” that is being protected, the other is the “Hash” and the third is the “Previous Hash”.
Hash is a kind of unique code that is present in every block of the chain, but each hash differs from the other in some way and is unique in itself.
The “previous hash” is a hash of the “previous block” and likewise, a block contains a hash of the previous block as well as a new hash of its own. This forms a chain and the starting hash is called the “Genesis Hash”, where the chain has initially started. So, if someone wants to modify or change a block, they have to change the hash of the present block and once this is changed the succeeding block’s “Previous hash” would be altered. Everyone in the chain can track the change and address it accordingly.
Blockchain technology has a massive potential to change the future of security and the introduction of Metaverse has given an experimental ground to it.