What is Blockchain Technology:
Blockchain is a chain of Block where information is stored in a very Secured way. It is very difficult or nearly impossible to change, hack Blockchain system. There is no central authority running the blockchain. Blockchain is extremely transparent to all its users. Blockchain run by the people who use it. Blockchain is a highly transparent and secured digital ledger of transaction. Blockchain was created by Satoshi Nakamoto in 1991. All the Data in a Blockchain is immutable. No one can manipulate data which already exist in a Blockchain.
Blockchain is the reason of the success of cryptocurrency. Blockchain is a technology behind the cryptocurrency. Blockchain technology use Distributed Ledger Technology (DLT). That's mean when a transaction made in blockchain anywhere from the world the transaction record reflect to all the ledger of the blockchain all over the world. That’s make blockchain extremely trustworthy for cryptocurrency transaction. All the data enter blockchain is irreversible. Transactions are permanently recorded in Blockchain. And the records are viewable to everyone.
How does Blockchain
works:
Blockchain is a very special type of Database. Blockchain is a chain of blocks. New Data enter into the blank block. When the block is filled with data it is chained onto the previous block. The data chained together in chronological order in a Blockchain. Blockchain holds a set of Data. Because the Blockchain doesn’t collect data like normal Database. It collect data in group which is also known as Blocks. For an example : A blockchain of bitcoin store the data of sender, receiver, amount of bitcoin etc.
As if there is no central authority of Blockchain but there is authentication system in Blockchain for security purpose. The authentication done with cryptographic keys which is a string of data (something like a Password). This key identify user and give them access to there account or digital wallet.
Every user has a private and a Public key in Blockchain. Everyone can see the Public key but no one can see the private key except the user. Using this both key transaction are safely authenticate in Blockchain.
The Transactions of blockchain are recorded with some immutable Cryptographic signature which is called "Hash".
Why Bitcoin use Blockchain:
Bitcoin is the worlds most popular and mostly used Cryptocurrency. Bitcoin use the Blockchain technology. When people wanted to make Cryptocurrency the first problem was trusting the value of it. Imagine that you made a Cryptocurrency and the name of your Cryptocurrency is "W Euro". So how can people trust that you will not take " W Euro" as much as you wish by using your central authority power? Actually people won't believe that and they won't trust in your Cryptocurrency that way. So the solution is Blockchain. Blockchain is a game changer for Cryptocurrency. As I mention before that Blockchain has no central authorities who can control everyone's transactions. So no one can fake or change Blockchain. And that makes the real value of Blockchain. So that Bitcoin has real value that is not changeable(Because Bitcoin use Blockchain Technology). So that gives Bitcoin the real value and make it a legitimate digital currency. Bitcoin is known as the future of Currency.
