💜 What is Blockchain and How its created??
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💜 What is Blockchain?
Blockchain is a decentralized system that serves as a public transaction ledger. This was developed in 2008 by Satoshi Nakamoto.
💜 Now what is a Decentralized System?
A decentralized system means that not one or any single authority has complete decision making rights.
eg. Our Banks are centralized system because there is one authority i.e. government whose decision may impact our saved money etc.
Now Decentralized system transfers this authority to distributed system and thus the decision making power doesn't reside with one authority or single unit.
In case of Bank it would give the same authority to distributed network thus creating a decentralized system.
💜 What do we mean by public transaction ledger?
As per the name goes, blockchain is chain of blocks. Here chain means that blocks are connected together like a chain and these blocks contains transactions.
💜 What is block?
A Block is just a collection of data. These data are encrypted. It contains transaction information from previous block with new transaction information. It will also store few other data like nonce, previous block's address to form a chain with.
This is how a blockchain is formed
So, let's summarize it then :
💜When transactions happen, then these transactions are verified(will go into detail in next POST)
💜There can be many transactions, these transactions together form a BLOCK with some additional required data.
💜These BLOCKS contains encrypted previous transaction with new transaction, They also have previous block's address to form a chain.
The very first block is called as GENESIS BLOCK as its previous block's address is null.
This is how a blockchain is formed. There are more details to it like how transactions are verified, what makes this blockchain system so secure or why it takes time for the transaction to go onto blockchain.
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Hello, I am Tanisk Annpurna
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