5 Of The Most Asked Questions About Blockchain Answered MRR Ebook With Audio

Sample Content Preview

Introduction

In recent months, blockchain technology has dominated the news. However, if you're like many, you may not be able to wrap your head around what is being said completely. In fact, according to the latest surveys, blockchain is one of the most complex emerging technologies out there today. While it is still a relatively new technology, blockchain is one that could dramatically shape the way businesses, and marketers work in the not-so-distant future.

The blockchain was first defined in the source code for Bitcoin and is the underlying foundation for all cryptocurrency transactions. Bitcoin was invented in October 2008, when Satoshi Nakamoto published a white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. The code for blockchain was released as open source in January 2009. Over the last decade, blockchain, the technology that runs Bitcoin, has developed into one of today’s most significant, ground-breaking technologies with the potential to have a tremendous impact on every industry from financial to educational, to manufacturing.

Currently, Bitcoin is just one of the several hundred applications that utilize blockchain technology. It has been an impressive decade of transformation for the technology with no signs of it slowing down in the next ten years. If you are interested in learning more about what blockchain is, here are five of the most asked questions about the technology answered.

What is Blockchain?

The blockchain is merely a digital method of economic transaction record-keeping, or in layman's terms, it's a digital ledger. The thing that differentiates it from any other digital record-keeping system is its security. While the data recorded in blockchain can be viewed openly by everyone within a given network, no one is able to edit or delete existing records. You can think of it as a giant, shared public spreadsheet that can only be updated by solving a complex math problem. If a new file needs to be added to the blockchain, a complex mathematical problem must be resolved.

To solve the encryption, computing power is used where a machine uses it capabilities to mine for the answer to the problem. If this concept sounds familiar, it might be due to the fact that you’ve heard the term “mining” before in a similar context.

Once the computer has discovered an answer to the encrypted problem, the solution is then verified by everyone on the network. If the answer is right, the new block, with all the transaction details and other new information is added to the ledger; a receipt is generated as proof, which is often in the form of a token or coin.

While there are various elements of blockchain technology that make it rather important, its two key capabilities are the recording of digital asset transfers that proves transactions took place and that ownership exists, and the inability to tamper with or overwrite its ledger.

Since the blockchain ledger is distributed to everyone within the network, even if one person manages to falsify a block, the technology keeps several copies of the correct version. This means that the technology can reject a false input like this because it recognizes that it doesn't match the other records in existence. This is what makes blockchain technology so unique. While it is entirely transparent, it is also kept altogether secure.

What’s more, the public distribution of blockchain lends itself to the decentralization of the digital ledger. This means that there’s not a core database that is vulnerable to attacks, which contributes to the technology’s somewhat tamper-proof nature.

How Does Blockchain Work?

Instead than having a primary administrator like a traditional database, a digital ledger has a network of replicated databases that are synchronized through the Internet and visible to anyone on the system. Blockchain networks can be public, like the Internet, where everyone in the world has access to it, or they can be private, where there is a restricted membership that is similar to an Intranet.

When a digital transaction is completed, it is grouped together with other transactions that have occurred within the last ten minutes. They are grouped into a cryptographically protected block that is then sent out to the entire network. Miners are members of the system with high levels of computing power that compete to validate the transactions in the block by solving complex coded problems. The first miner to correctly answer the challenge and confirm the block receives a reward, usually in the form of a coin or token.

After the block of transactions is validated, it is timestamped and added to the chain in linear, chronological order. New blocks that have been confirmed are then linked to the older blocks, forming a chain of blocks that show every recorded transaction made in the history of that particular blockchain. The entire chain is updated constantly so that all of the ledgers in the network is the same, giving each member of the blockchain network the ability to prove who owns what at any given time.

The decentralized, open, and cryptographic nature of blockchains allow members of the network to trust each other and make peer-to-peer transactions, effectively eliminating intermediaries. It also brings with it unprecedented security benefits.

Is Blockchain Technology Secure?

Through the use of hash functions and timestamps, blockchain has made it so that the data in the chain cannot be changed or tampered with once it has been verified. Since you can’t overwrite the data in a blockchain, manipulating the data is impractical, ultimately securing the data and eliminating the centralized points that hackers and cybercriminals often target.

• License: Master Resell Rights
• Category:Ebooks
• Tags:2020 Ebooks With Audio Master Resale Rights