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Blockchain is a technology that allowed Bitcoin to appear on the scene and now it is being discussed all over the world, as development of cryptocurrency is not the only function blockchain can deal with.
If you want to know all about blockchain you need to sign up for special courses that will allow you to acquire all kind of information about the subject in details. Actually, blockchain is something more that just a sequence of blocks, so if you want to understand how it works you need more than just reading one article. However, if you want to get a brief info on a subject read below.
What Is Blockchain in Plain Words?
Most people think about Bitcoins when they hear about blockchain. This can be understood, however, in blockchain is not only a technology for development of decentralized currency.
Nowadays, the popularity of Bitcoin attracts interest to blockchain, on the other hand, in mass consciousness the Bitcoin often is associated only with something negative, forbidden and subjected to prosecution by government. This is one of the reason why Bitcoin did not become the popular accounting currency.
Blockchain (chain of blocks) is a distributed database where devices of data storage aren’t connected to the general server. This database stores constantly growing list of the ordered records called blocks. Each block contains a tag of time and the link to the previous block. Application of enciphering guarantees that users can change only those parts of blockchain they “own” as they have closed keys without which file recording is impossible.
Besides, enciphering guarantees synchronization of copies of the distributed chain of blocks for all users.
The concept of blockchain was offered by Satoshi Nakamoto in 2008. It has been realized for the first time in 2009 as a component of digital currency — bitcoin where the blockchain plays a role of the main general register for all operations with bitcoins. Thanks to blockchain technology Bitcoin has become the first digital currency which solves a problem of double expenses (unlike physical coins or counters, electronic files can be duplicated and spent twice) without use of any authoritative body or the central server.
Safety in technology a blockchain is ensured through the decentralized server which is putting down time tags, and peer network connections. As a result the database which copes independently, without the uniform center is formed. It makes blockchain very convenient for registration of events and operations with data, management of identification and confirmation of authenticity of a source.
Do You Need To Understand Blockchain to Earn on Cryptocurrency?
It depends. If all you are going to do is make short trading deals on the marketplace, then it is not necessary. However, if you are going to use cryptocurrency as an investment tool and want to understand which technologies and companies can become perspective in future understanding how blockchain works is a must for you.
