Blockchain In 7 Minutes | What Is Blockchain | Blockchain Explained|How Blockchain Works|Simplilearn

Have you ever wondered if there is an easier way to complete transactions without having to deal with online wallets, banks, and third-party apps? Well, it is possible thanks to

blockchain

. Here you will find everything you need to know about

blockchain

. Imagine that four friends, Jack, Ted Sam, and Phil, meet for dinner afterwards. They're done, Jack pays the bill and they all decide to split the expense between them now, the next day when Phil sends his share to Jack via online money transfer, the transaction goes smoothly, then Ted and Sam send Their respective shares with Jack but their transactions do not go through the failed transaction cites some problems at the bank, that is when Jack learns of the many ways a bank transaction could fail, it could be due to technical problems at the bank where a of your accounts Hacked daily transfer limits are exceeded and sometimes additional charges such as transfer charges associated with transferring money, to solve these problems, the concept of cryptocurrency emerged.

Cryptocurrencies are a form of digital or virtual currency that runs on a technology known as blockchain thanks to blockchain. immune to counterfeiting they do not require a central authority and are protected by strong and complex encryption algorithms and in a market of over thousands of cryptocurrencies like litecoin ethereum z cash and so on, a bitcoin reigns supreme now let's go back to our previous example and do Have Phil Ted and Sam send Jack two bitcoins each as a contribution to last night's dinner. Suppose Phil Ted and Sam have three bitcoins in reserve while Jack has five. first phil sends two bitcoins to jack.

A record is created in the form of a block. The details of the transaction between them are permanently inscribed in this block. This record also contains the number of bitcoins each of the friends owns, so after Phil's transaction, Jack has seven bitcoins, while Phil has one. After this, Sam and Ted send two bitcoins to Jack, a new block is created. Created for each of these transactions, these blocks contain the details of the transaction, as well as how many bitcoins Sam Ted and Jack have in reserve. These blocks are linked to each other, since each of them takes reference from the previous one for the amount of bitcoins that each brand has.

This chain of records or blocks is called a ledger and this ledger is shared among all friends, which acts as a distributed public ledger. This forms the basis of blockchain. So

what

happens when Phil only has one bitcoin left and tries to send two more bitcoins? For Jack, the transaction will not go through because all of his friends have copies of the ledger and it is clear that Phil only has one bitcoin left. His friends will mark this transaction as invalid. A hacker will not be able to alter the data in the blockchain. Because each user has a copy of the ledger, the data within the blocks is encrypted using complex algorithms, all this is possible with the help of blockchain technology.

Blockchain can be described as a collection of records linked together, strongly resistant to alteration and secured. using cryptography now let's take a closer look at the bitcoin transaction between jack and phil and find out how each user on the network bitcoin has two keys, a public key and a private key, the public key is an address that everyone in the network known as a user's email address, the private key is a unique address that only the user knows about, something like a password. First, Phil passes the amount of bitcoins he wants to send to Jack along with his and Jack's unique wallet address via a hash. algorithm this is all part of the transaction details, these details are encrypted using encryption algorithms and using Phil's unique private key, this is done to digitally sign the transaction and to indicate that the transactions come from stuffing.

This outing is now broadcast around the world using Jack's. The public key with this, the message or transaction can be decrypted only by Jack's private key, which only Jack has knowledge of different cryptocurrencies use different hashing algorithms while Bitcoin uses sha-256 algorithm, Ethereum which It is also a famous cryptocurrency, use one known as ethash in this transaction. and several other similar ones are taking place around the world these transactions are validated and then added block by block the people who validate these blocks are called miners for a block to be validated and added to a blockchain miners need to solve a complex mathematical problem the miner who solves this first adds the block to the blockchain and is rewarded with 12.5 bitcoins.

The process of solving the complex mathematical problem is called proof of work and the process of adding a block to the blockchain is called mining with these Phil and Jack wallets. They are updated as is every person on the network who has completed a transaction now that they know blockchain and its important concepts. It's time for a little test:

what

is the concept of blockchain that ensures that none of the users within the network can alter the data? public distributed ledger b proof of work c proof of stake d hash encryption let us know which one you think is the correct answer in the comments below three lucky winners will get Amazon gift vouchers details are mentioned in the description below let's take a look look at how Walmart uses blockchain to provide its customers with better service Walmart was facing problems in delivering quality products to its customers it was facing a high return rate and large amounts of refunds due to the poor quality of its products they were unable to determine the point of failure in the supply chain that started from the farm to storage, transportation and processing until reaching the customer, then Walmart adopted blockchain technology with blockchain, the quality of the products at each step was permanently inscribed within a block, for For example, when a customer marks a product as damaged, it can correctly identify where the product was damaged throughout the supply chain, helping Walmart identify problem areas and fix them, and this is just one of several ways in which blockchain is used in real life applications.

Can you think of any other? Let us know in the comments below that's all for now thanks for watching and stay tuned for more