Blockchain seems to be a complex network and it is actually a complex network. But when a person starts understanding the concept of this blockchain, things start becoming less complex and easier. Blockchain is a famous type of database. You need to know what is a database before actually knowing the blockchain.
A database is known as a set of information that is stored on computers or electronic systems. Data, information, or databases are organized in a tabular format to help increase ease in filtering and finding data.
Databases use data stored in table formats. Although data can be stored in the form of spreadsheets is a less appropriate format to store databases. Moreover, spreadsheets are used to made to store data for one person or information of a small group of information.
While we discuss holding data in the household system, power electronic systems and computers are used to store larger databases. Moreover, servers can make a complex network of several computers to store larger databases as they combine to make bigger storage capacities. When a complex system of computers is made, users on several computers can have access to the databases and spreadsheets.
The biggest difference between a blockchain and a conventional database is that they differ in the ways to structure data. Blockchain is typically known for collecting information in the form of groups, better known as blocks. Blocks hold sets of information. Moreover, blocks differ in terms of capacities. Once a block is filled with information, it is connected to another block, and in this way, a blockchain is formed. All the blocks in a blockchain contain information that is interlinked between all the blocks.
The database contains information in the form of tables. In other words, the database contains information in tabular form. On the other hand, blockchain technology uses several blocks. Moreover, we can say that blockchain contains databases but databases do not contain blockchains. Every block naturally contains an irreversible timeline of data when it is implemented in a decentralized nature. Every block present in the chain is allotted a fixed timestamp when it is being added to the chain.
Transparency is the biggest attribute of blockchain technology. Bitcoin blockchain technology uses a decentralized system. In this system, every transaction made is transparent. Everyone using that system can view the transaction going live. Transactions can be seen by having the blockchain explorers or personal nodes. Moreover, every node has a copy of the chain that contains fresh information every time the new blocks are added. Transparency has made it easy for people to track bitcoin whenever required.
In the past, exchanges or transactions were hacked using bitcoins as people were using bitcoins to make transactions. Hackers were completely unknown, and they were successful in hacking systems as the transactions were transparent.
Like other technologies of the world, cryptocurrencies like bitcoins need some databases that aid in keeping a record of larger data volumes and bigger records of transactions. Moreover, these keep them safe and secure.
You need to know the history of blockchain. It was in 2009 when blocks were used for the first time to store information. Every block of the blockchain is linked to the previous block that keeps a record of timestamped information.
As the world is progression, cryptocurrencies are used in actively growing markets to make transactions.
Blockchain is quite beneficial as it helps in maintaining a fraud-proof system that helps to hold transactions. These cryptocurrencies and transaction methods help by lowering the possible risks of fraud happening in the world.