What is
Blockchain Technology?
Blockchain
is a way of storing data or a digital register of transactions, transactions,
contracts. All that needs a separate independent record and, if necessary,
verification. In the blockroom you can store data on loans issued, property
rights, traffic violations, marriages. That is, almost everything. Its main
difference and undeniable advantage is that this registry is not stored in any
one place. It is distributed among several hundreds and even thousands of
computers all over the world. Any user of this network can have free access to
the current version of the registry, which makes it transparent to all participants.
Blockchain -
the public database of all transactions that have ever been committed in the
system. Widely used is also the term "block" as "transliteration
from" (English blockchain, block chain: block, chain).
The chain of
transaction blocks is a chain of transaction blocks built according to certain
rules. The term first appeared as the name of a distributed database
implemented in the Bitcoin crypto currency.
What is special about Blockchain technology?
The distributed nature of the Blockchain databases makes hacking
hacking almost impossible, because for this they need to simultaneously access
the copies of the database on all computers on the network. Technology also
allows you to secure personal data, because the hashing process is
irreversible. If even the original document or transaction is later changed,
they will receive a different digital signature as a result, which signals a
mismatch in the system.
How Does
Blockchain Technology Work?
Digital
records are combined into "blocks", which are then linked
cryptographically and chronologically into a "chain" using complex
mathematical algorithms. Each block is associated with the previous one and
contains a set of records. New blocks are always added strictly to the end of
the chain.
The encryption process, known as hashing, is performed by a
large number of different computers running on the same network. If, as a
result of their calculations, they all receive the same result, the block is
assigned a unique digital signature (signature). As soon as the registry is
updated and a new block is formed, it can no longer be changed. Thus, it is
impossible to forge it. You can only add new entries to it. It is important to
consider that the registry is updated on all computers on the network at the
same time.
Why Use a
Blockchain?
Blockchain technologies allow you to make records about files
and create a single registry that is not owned by one particular owner. This is
a database that is distributed among different owners, and the records in it
are connected in such a way that it is impossible to change any record in the
middle of the chain. If you recorded in Blockchain, then it stayed there
forever. This is very useful, for example, in order to make a single register
of property owners. Or, using the example of our Acronis True Image product,
this property allows you to check whether the file you are restoring from the
backup copy is unchanged. That is, you can make sure that you have exactly the
file that was placed in the backup, say, five years ago. In order to make sure
that this is the case, various mathematical algorithms are used.
What is a
Distributed Ledger?
The Ledger system completely
returns to the times of ancient history. Their main purpose was to act as a
means of storing information for accounting purposes, so that it was easily
accessible to the persons concerned. The advent of computer technology, new
cryptographic developments and complex mathematical algorithms allowed the
distribution of books. The idea of these distributed registers is relatively
new, as well as Blockchain technology. Let's look at the similarities and differences
between the two databases.
What are distributed books?
In
fact, the distributed book is a complex database that covers many countries,
institutions, users and even sites. They are completely decentralized to
eliminate the need for a central regulatory body or intermediaries, such as
lawyers, notaries, regulators, compliance officers and even banking
institutions. All data and information stored in the distributed book can be
authenticated and confirmed by participants in the distributed book, which are
called nodes in the book.
What is blockade?
It is very important to understand that Blockchain is just one
type of distributed book. Many people do not know that there can be many
different types of block circuits with different characteristics. This is
partly due to the popularity of Blockchain, associated with bitkoy, eclipsing
others. Block circuits operate on the basis of a consistent, replicated,
synchronized and common digital data system. For example, once a transaction
occurs in a block bitlock chain, the miners hasten to check the transaction by
resolving a cryptographic algorithm using computer processing power. Once the
transaction is verified, it will be affixed and added to the Blockchain block
with other operations, which are then linked to other blocks using a unique
cryptographic signature known in cryptomania as a "hash".
Conclusion
Distributed registers and block circuits are definitely
overlapped in cases of use, as well as terminology. In fact, distributed
registers can be synchronized and implemented with or without Blockchain and
its underlying mechanisms. A great way to wrap your mountain around everything
that was discussed is to think that Blockchain is a replicated database or even
a magazine. This means that identical copies of its data are stored on each
node of the network. Although in a distributed book, individual nodes may have
different information pertaining to different data and activities.
What Can a
Blockchain Do?
Internet
commerce is becoming more popular every year, but it is hindered by the threat
of hacker attacks and distrust of partners by competing with traditional
business. This problem is solved by the new database technology - Blockchain.
These databases do not have a single control center, operations are confirmed
by other network members, so they are immune to hacker attacks and allow
verifying the truth of information about a partner - this is the future of
Internet commerce.
Blockchain - a new kind
of databases without a single center
Blockchain is a database, that is, an electronic information
store, similar to an entry in an Excel file. For example, in bank bases it is
written how much money lays on accounts, and in a database of police - who and
when broke rules. A similar principle here, unlike traditional databases, in
Blockchain the information is not in a single store, but is written to each
participating computer on the network. Blockchain technology registers
transactions in such a way that they can not be deleted or rewritten
afterwards, the information is only consistently updated. Therefore, the data
is written in the form of a chain of updates, not a table. You put 100 dollars
on the account, and a database with this information appeared in the database.
Then you sent someone $ 50 and put another 100. But in the first block
information about the amount of money will not change by 150 - two new blocks
with updates will be added. Each of them has its own code, indicating a link to
the previous and next blocks.
Collect and update this information so-called miners - active
users, who for their work receive cyber-currency fees Bitcoin.
What is the
Difference Between a Blockchain and a Database?
The technology of
blocking is different from the traditional database architecture or the very
principle of organization. The databases used on the Internet, as a rule, are
based on the client-server architecture. In contrast, the introduction of
blockchain provides for the principle of the absence of a single server and the
equal participation of all users.
