What is Blockchain?

Blockchain is considered to be a public ledger of bitcoin transactions that had been executed. This is constantly developing as completed blocks will be added to the new recording set. Blocks will be added to the Blockchain in a chronological and linear order. 

Each node will also get copy of your Blockchain which can be downloaded when you join the network of bitcoins automatically. Blockchain will give you complete and detailed information with regards to the address and the balances starting from the genesis block up to the updated and completed block.

Breaking Down the Idea of Blockchain

Blockchain is usually seen as the primary technological bitcoin innovations. This is due to the fact that this stands as a clear and detailed proof to all the transactions in the bitcoin network. One of the important parts of the Blockchain is the block which is responsible for recording all recent transactions in bitcoin network. Once it is already completed, it will immediately go directly to the permanent database of the block.

Every time, one block is completed, it can immediately generate for a new block. Well, there are countless of blocks which can be placed in Blockchain. But, can you placed these blocks in a random manner? Definitely no! Blocks are linked with each other in a chronological and linear order wherein every block contained previous block hash.

When you make use of the conventional banking analogy, Blockchain would refer to a full history of transactions in the bank. Transactions in bitcoin will be entered in a chronological Blockchain the same way transactions in the banks do. Meanwhile, the blocks are also the same as bank statements. 

Based on the protocol of bitcoin, the database of Blockchain needs to be shared by the entire nodes who are participating in this kind of system. The complete copy of the Blockchain will be recording all the executed bitcoin transactions. It can therefore provide some insights and ideas about some facts on how much bitcoin value belonged to a specific type of address from the past up to the present.

The continuously growing Blockchain size is considered to be a problem to some people. This is due to the fact that it provides some issues concerning synchronization and storage. It is also stated that every ten minutes, new blocks are appended just to block the chains through mining.

How Blockchain Work?

Blockchain is considered to be an immutable and shared type of ledger for recording purposes particularly on the transaction history. It also nurtures new transactional generation applications that develop transparency, accountability and trust.

Blockchain had already joined several foundations to improve and evolve upon earlier Blockchain forms. This is the reason why instead of having one Blockchain which is reliant for the crypto currency exchanges with some anonymous users in public bitcoin network, a specific type of Blockchain for businesses delivers permissioned type of network with recognized identities even without the presence of any cryptocurrencies.

Benefits of Blockchain

There are huge numbers of benefits if you choose to make use of Blockchain in every bitcoin transactions you’re going to make and these include the following:

1.Shared Control/Decentralized

Blockchain allows all enemies to work altogether to acquire common benefit. This is the reason why this is considered not only a financing tool but also an effective political tool.

Generally speaking, Blockchain can also reduce the friction in forming some consortiums. This is because entities who are completely involved in the transactions are not giving control to it. 

2.Audit Trail/Immutability

When you make use of Blockchain in writing some of your date, you’re assured that the series of transactions that happened will be traced in a linear and very chronological manner. This is very essential for banking financial audits since they are given the chance to keep track of clear and accurate records.

3.Exchanges/ Assets

Once you all have the entire date stored that no one take control of and no one change,  then it completely unlocks the huge possibility of getting an asset which can be stored by themselves. Putting it the other way around, it offers huge numbers of benefits to those double-record keeping purposes. This is the reason why more and more financing organizations as well as banks in these days are spending time and effort to make use of this Blockchain again and again.

With the huge numbers of benefits that Blockchain offers, it is not surprising to know that more and more people in these days are already spending time and effort to make use of this kind of tool.

But, before using it, you need to first spend time studying how it works and how it can help you. Try to figure out all things first before finally deciding to make use of this tool. This is just to secure and protect all your data when you use this tool.