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A beginners guide to blockchain – the basics of what you need to know

Blockchain in a nutshell – good place to start

blockchain bitcoin basics

 

You hear blockchain, your probably think bitcoin

While inextricably linked, the two are not the same. Bitcoin for beginners is here but start off with the blockchain principles:

Principle 1:Blockchain is a peer to peer (P2P) network.

blockchain peer to peer

That means it is a decentralized network with no individuals controlling any transactions and the collective hive mind of many, many individuals is required to verify and control transactions. It means the chain cannot be hacked, changed or deleted without the agreement of everyone.

Principle 2: Blockchain is transactional in nature.

blockchain transactions

The whole purpose of blockchain is to verify and then confirm transactional activity of many kinds with the absolute usefulness of this being the fact that every transaction is recorded in a permanent ledger which is unalterable.

Principle 3: Security.

blockchain security

As a decentralized distributed network, nobody can interfere with the basic principles of the chain; no individual, whether through reckless behavior or malicious intent, can change or alter or destroy the blockchain. There is no central point of failure; individual password hacks through phishing or social manipulation have damage limited to the individual user. Don’t give out your password. If you do, you lose; there is no technological solution to giving someone your passcodes. Blockchain works with Public Key Infrastructure (PKI) and is highly encrypted. Right now there is no known way of breaking that encryption.

Principle 4: Cryptography.

blockchain cryptography

Understand the baseline of why the encryption works and why that’s a huge positive. Encrypted data simply means that plaintext which is easily readable is converted into ciphertext, or encrypted data that is entirely unreadable, with the use of an algorithm or a cipher. Only with authorization can users can access any data and read the contents making this ideal for privacy and security reasons.

Principle 5. Inclusive:

blockchain inclusive

Blockchain I strongly feel is a chain which will set everyone free and unify one and all with no discrimination whatsoever.

Principle 6. Blockchain Keeps Your Privacy

blockchain privacy

What do you think?

Written by confuciusx

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