Blockchain explained for beginners

An Introduction to Blockchain

If you’re interested in learning more about investing or want to know more about various forms of currency, you’ve likely heard of blockchain. This system can make payments easier for you and ensure that your business and personal expenses are taken care of in a timely manner.

What Is Blockchain?

Blockchain consists of a “block” and a “chain.” At the higher levels, there are several chains made of blocks. Digital details are grouped into blocks and chained together. Every block has a has. Hashes are sets of characters that come from the details in the blocks. For instance, if there is a “USA” block that contains the cities of Chicago, Los Angeles, and New York, the hash could be CLANY.

Every block contains the hash of the block that came before it. The hashes bind the blocks, and it’s important that no one tampers with the blocks and changes the hash for any of them, since this will break the chain.

The blockchain data isn’t on one sole computer. The data is copied in the computers of every network users. If you’re part of a blockchain network, your computer will download the blocks. If one of the users in the networks changes the chain in any way, the network will choose the data of the majority of users as correct.

Public and Private Blockchains

Blockchain networks have several functions. For instance, bitcoin is a digital form of currency and public blockchain used as a system for payment. The blocks involved can’t be tampered with and hold a record of all transactions. The people in this network are known as miners and they received bitcoins as a form of profit.

It’s also important to notes that Ethereum is involved in blockchain, since it serves as a code host. It’s challenging to developing a blockchain from the ground up and build a community, so Ethereum takes care of this for you. You’ll likely have to pay a fee for this service to utilize it consistently.

Private blockchain is suitable for people who have contractual agreements to one another. For instance, if a tenant owes the landlord rent and doesn’t pay on time, the landlord and tenant can use blockchain to avoid this issue in the future. The agreements explained in the rental contract must be transferred into code. The code is deployed on the tenant’s computer and the landlord’s computer. The banks of the landlord and tenant are in the private blockchain network and the contract terms are implemented on the network. Both parties will have a copy of the agreement. So, at a set date and time each month, the tenant’s rent payment will be transferred from the tenant’s bank account to the landlord’s account.

The Future of Blockchain

If you think blockchain may be right for you, it’s best to take an online course to learn more about how to use this system for your benefit. You’ll also learn how to build apps using blockchain. Keep in mind that blockchain isn’t just cryptocurrencies or payment systems. They can also be learning platforms and social networks, and you can use these features to improve the way you send and receive payments