BLOCK CHAIN: WHAT & WHY

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Crypto 101 – Part 1

Manish Verma

Most of us have by now heard of bitcoin, crypto currency, blockchain NFT etc., What’s most popular in all of these is of-course bitcoin due to the massive increase in the price over last 10-12 months. I have titled the blog Crypto using it as a generic term as Crypto is more that just currency because of the tech behind it. Even in 2017 bitcoin frenzy had caught the attention of all investors, however it died down so as the price crashed. In series, I shall publish a blog to share some details on Crypto and its tech.

What is a Blockchain?
The technology behind crypto which is called the blockchain. Imagine blockchain like a bank passbook to keep track of your debits and credits. Now imaging this passbook holds details of millions of people and the information is held on thousands of computers.

Each computer will need to verify the transaction and once it is verified, it is like recording it on the physical passbook in permanent ink. The register records transactions for a set period of time which can be as less as 10 mins and once the register is filled, it is shut and assigned a code (alphanumeric) to identify it.

Once the register is shut a new one is started which is attached to the first one and that is how you get a chain of registers called a blockchain.

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The fact that these registers are residing on thousands of computers, you will need to work backwards and un-attach them before you can reach the original transaction and change it. This obviously cannot be done without being identified and that is what makes the technology un-hackable. What can I use Blockchain for? The blockchain tech was created by the creator of bitcoin (pseudonym Satoshi Nakamoto) who had set out to put up a secure, faster decentralized financial system, available to all with or without access to formal financial system.