WHAT IS BLOCKCHAIN? (in higher language)

            -Most of you would say that It was the technology behind bitcoin or cryptocurrency. It is true but it’s like defining the internet as the technology behind email which is also true but it doesn’t even begin to describe the internet. There are different ways to think about blockchain.

           

            One way is think of blockchain as this one big ledger in the cloud, now ladger is spite looking like this ‘are very important’, everything that you own including money is nothing but really entries on a ledger. If you send money for example from the US your friend in Zambia it's not money which flies from here to there it's actually a ledger entry which happens in my ledger and other parallel entry that happens in your friends ledger and money is transfer. Now the problem however is that between my ledger and her ledger there are bunch of other ledgers there are bunch of ledgers owned by bank, there are bunches of ledger owned by money transferring institution other Financial Institutions , regulators insurance companies and each of these ledgers have to be reconcile and changed and because you have to change so many of them it creates friction and what is friction create is a time delay and obviously cost and so the $100 sent by me to my friend in Zambia reaches maybe in 5-6 days later and only $94/$95 were reached.

Now imagine instead of this broken system we actually had one Universal ledger and all the participants that I talked about me, her, the banks,the regulators everyone else were actually participants in that ledger or if I use a slightly different language we are nodes in that ledger and every time every time an entry had to happen every single one of them would have to authenticated this is right, this is right, this is right and so then you only need one entry real time. now this concept of a single Universal ledger is actually what is the heart of a blockchain.

 So whenever a new transaction happens it gets or a set of Transaction ID gets added on as one more block in a chain of already existing transaction and obviously this transaction which has added  has been authenticated by everyone and it’s kind of right. also this blockchain is protected by amongst the best Cryptography algorithms available. so very difficult to hack. The another important thing is that every block added is immutably link to the last block and that block is linked to the last block and so if you have to change one block or if hacker comes and goes to change one transaction or a block he or she has to change the entire changed, it's very difficult to do.therefore super security driven by consensus driven by this immutability.

The other thing in a blockchain is that there is a chain so you can actually traceback any event or you can go back to block by block by block, you can trace it back. blockchain also faster or have a originated this thing called smart contracts which is logic building most blockchain. which is that whenever an event happens it Trigger another event automatically in this is very useful. finally no one owns the chain so who maintains it? it's not one bank, a single trusted authority infect is the entire bunch of people but to maintain this chain, you require resources, you required computing power, you require electricity, required time, you require money.

 So when satoshi nakamoto in 2008 invented this concept, he did a very brilliant thing he created a currency along with it and that currency was the instant pay for all those people maintaining this change and the currency because it was the Bitcoin blockchain was called Bitcoin.