“It looks like blockchain is here to stay, I think it’s going to be a powerful technology for modern society.” – Reid Hoffman, Co-Founder & Executive Chairman, LinkedIn.
But what is a Blockchain? Consider this scenario that explains blockchain:
1. Assume A sells 1-acre land to B.
2. Now, B gets land registered in his name, which was previously in A’s name.
3. Registration is done by an MRO officer, who is trusted by B.
4. A goes to the MRO office, bribes/threatens the officer to tamper the records, and changes the land owner’s name back to A, from B.
5. Now A claims that land belongs to him even after B has made the payment.
6. This tampering of records was possible as a single authority had control over it. It made A’s job easy to attack.
7. Now assume that there is a huge non-erasable blackboard flying in the air, where everyone can see what is being written.
8. A would have written about the transfer of land on the blackboard once the money is given by B.
9. Here the blackboard is not controlled by one central authority to bribe or tamper.
10. The transaction is now safe. B didn’t need to trust anyone as he was trusting the MRO previously.
11. Since a single blackboard is difficult to fly around the world, we have small blackboard pieces connected to each other. Each of these pieces is called a block. The entire chain of these pieces is called a blockchain.
Now suppose all your emails are on Gmail. If someone threatens google, your emails can be accessed. If it's on the blackboard, no single authority has the power to tamper with them. Gmail is Web2, blackboard is Web3, which is based on blockchain technology.
Thus, blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is a decentralized, distributed ledger that records the provenance of a digital asset. Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, tracking digital use, and payments to content creators, such as wireless users or musicians.
That’s all from my side. I hope that you gained a slight idea about Blockchain technology. Let me know your thoughts on this technology in the comments below.