Blockchain Tutorial – Learn Blockchain Technology 2019
In this Blockchain tutorial, we will study the latest technology – Blockchain, and a short introduction for further insight into the Blockchain technology. Moreover, we will see what is Blockchain Technology, how Blockchain works, benefits of Blockchain. Along with this, we will learn Blockchain applications, Blockchain history and the limitations of Blockchain.
So, let us learn Blockchain for beginners.
1. Introduction to Blockchain
Introduction to cryptocurrencies(Bitcoin) brought the concept of Blockchain into the highlight, it is a database that protects us from tampering and revision of the data. The blockchain is still an emerging technology, so it is difficult for us to understand its working without getting into the codes or by digging deep into computer science.
Now, in this Blockchain Tutorial, we will study a short introduction about blockchain. The article covers the original idea of Blockchain, the mode of operation and the possible applications of cryptocurrencies, as well as Blockchain technology. Bitcoin now comes up as digital currency, but the base of Bitcoin is blockchain and it could prove to be much more significant.
2. What is Blockchain Technology?
The Blockchain is the public ledger of all the Bitcoin transaction that is going to take place and which are already executed. It is growing at a constant rate as miners add new blocks to it every 10 minutes in order to record all the transactions that took place in recent times.
The blocks are always added to the Blockchain in a linear and in chronological order. Each full node consists copy of the Blockchain, which gets download automatically as soon as the miner joins the bitcoin network. Blockchain technology contains all the necessary information about the balances and the addresses from the genesis block that is, the very first transactions executed to the most recently completed block. The Blockchain as a public account which means for any of the block explorers for transactions connected to a particular Bitcoin address.
In other words, it is a single linked list of a block, each block contains a number of transactions and provides a decentralized store that is visible around the globe by the whole network of users and acts as a mode of transfer of records of transactions offering great transparency. The Blockchain Technology is immutable and the information remains in the same state.
In this Blockchain Tutorial, we will explore more about Blockchain Technology. Let’s start.
3. Blockchain Tutorial – History
With the invention of Bitcoin, Blockchain came into recognition and then implemented in 2009. Satoshi Nakamoto finds and implements it as a core component of Bitcoin. It became the first digital money which solved the problem of double spending.
In the original papers of Satoshi, the names “Block” and “Chain” were used separately but it got popular by 2016 as a single word “Blockchain.”
4. How Blockchain Works?
In order to understand the working of Blockchain let us first understand the working of Bitcoin. However, Blockchain technology is applicable to any transaction taking place online. The steps of working of Blockchain are as follows:
- An individual in the Blockchain network requests for a transaction.
- This request for the transaction is then displayed to the other members(i.e.- Nodes).
- The network of Nodes by verified algorithms then approves the transaction.
- After the approval of the request by the nodes, they complete the transaction.
- Immediately after the transaction, a new block is added to the Blockchain network which is immutable.
- Then, verified transaction adds with other transactions making a new block of data.
Any person who wants to add information in the Blockchain must have a public address and a unique key to log in, private key signs the transaction. Every time you buy or sell Bitcoin, Bitcoin Blockchain adds that record. This information is highly secure as it duplicates thousands of time and any hacker need to control more than 51% of the nodes to make any modification.
As this ledger is maintained by all the nodes and not by any centralized authority let us assume a bank it has several impacts:
- Unlikely in a bank system one only has access to his own account i.e.- balance and his own transactions, but this is not the case with the Bitcoin Blockchain in this everyone can access to everyone’s account.
- Bitcoin is less secure and trustworthy because of the reason that there is no help desk in bitcoin which a bank does.
- In Blockchain, no trust issues arise, as mathematical codes and function obtain reliability.
In order to perform transactions in a Blockchain, you need a Waller, a program that allows you to store and share Bitcoin. Only you can use your wallet since a special cryptographic method protects it.
5. Benefits of Blockchain Technology
So, let’s move towards some benefits of BlockChain Technology:
- The speed of the transaction increases.
- Blockchain Technology is beneficial in cutting the cost and overcoming the complexity.
- It reduces data duplication.
- Distribution nature of Blockchain, there is no chances of failure.
- Governance and Trust.
In the Bitcoin Blockchain system, the majority of the members must agree to add the new data which becomes a part of the Blockchain. When a lot of people study, analyze and pass relative comments on stuff like duplications, it creates a much reliable and honest system.
6. Blockchain Applications
Next, in this Blockchain Tutorial, we will study some Blockchain applications, let’s discuss them one by one:
a. Payments and Money Transfers
With the use of the Blockchain Technology, you will be able to make money transfer directly and safely to anyone you want and that too at a very low rate, this is because of the fact that there are no intermediaries slowing down the process of transfer between the bank.
This technology is highly useful, for those who have employees in a global marketplace.
b. Digital Identity
Blockchain technology tracks and manages the digital identities of the users which provide them both secure and efficient identity. The systems based on Blockchain authentication system provides verification of identities by the use of digital signature. Public key cryptography is the base of the digital signature.
7. Blockchain Tutorial – Limitations
In this part of the Blockchain tutorial, we will discuss some limitations of Blockchain:
a. Risk of Errors
In Blockchain all the incoming data must be of high quality. The stored data must be in a threat if all the stored events are not in an accurate manner.
Data of Blockchain is shared by all the systems. This openness is not a safe approach for the storage of the data.
So, this was all about the Blockchain tutorial for beginners. Hope you like our explanation.
8. Blockchain Tutorial – Summary
Hence, in this Blockchain tutorial, we studied Blockchain Technology and its introduction. Moreover, we looked at the applications of Blockchain and Blockchain limitations. Further, we moved on the benefits of Blockchain Technology. At last, we discussed Blockchain history. Furthermore, if you have any query related to Blockchain tutorial, you can ask through the comment section.