A blockchain is a growing list of records, called blocks, which are linked using cryptography.Each block contains a cryptographic hash of the previous block,a timestamp, and transaction data (generally represented as a merkle tree root hash in techy terms).
Who invented Blockchain ?
Blockchain was invented by a person using the name Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin. The identity of Mr.Satoshi Nakamoto is unknown. The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. The bitcoin design has inspired other applications,and blockchains which are readable by the public are widely used by cryptocurrencies. Blockchain is considered a type of payment rail.Private blockchains have been proposed for business use. Sources such as Computerworld called the marketing of such blockchains without a proper security model which is known as “snake oil“.
Structure of Blockchain
|structure of Blockchain|
A blockchain is a decentralized, digital ledger that is used to record transactions across many computers so that any involved record cannot be altered This allows the participants to verify and audit transactions independently and relatively inexpensively as well. A blockchain database is managed autonomously using a peer-to-peer network and with a distributed time stamping server. They are authenticated by mass collaboration powered by collective self-interests. Such a design facilitates robust workflow where participants’ uncertainty regarding data security is marginal. The use of a blockchain removes the characteristic of infinite reproducibility from a digital asset. It confirms that each unit of value was transferred only once, solving the long-standing problem of double spending. A blockchain is also known as a value-exchange protocol.
Disadvantages of private blockchain
Nikolai Hampton pointed out in Computerworld that “There is also no need for a ’51 percent’ attack on a private blockchain, as the private blockchain (most likely) already controls 100 percent of all block creation resources. If you could attack or damage the blockchain creation tools on a private corporate server, you could effectively control 100 percent of their network and alter transactions however you wished.”the bitcoin blockchain is protected by the massive group mining effort. It’s unlikely that any private blockchain will try to protect records using gigawatts of computing power â€” it’s time consuming and expensive. He also said, “Within a private blockchain there is also no ‘race’; there’s no incentive to use more power or discover blocks faster than competitors. This means that many in-house blockchain solutions will be nothing more than cumbersome databases.