Blockchain, Crypto 101

Blockchain for Dummies

From other people’s perspective, blockchain might not be looking like the things that everyone is familiar with. Using a blockchain, people can enter data into a record of information; users can also control how the record of information has been updated and amended. However, when someone reaches ground level, the differences that show the blockchain technology are so unique and special.

The digital backbone of blockchain is very similar to the highly protected and centralized databases that the banks and governments keep today. Their owners control the centralized databases; this includes managing the updates and protecting the database from harm.

However, the distributed database that was created by blockchain technology had a different digital backbone. Also, it is the most crucial feature of blockchain technology.

Transactions are broadcasted while every node updates the record independently.

This is what makes blockchain technology so useful. It shows new ideas in the information registration and the distribution that eliminates the need for a trusted third-party to facilitate digital relations. Nevertheless, blockchain technology is not new. As an alternative, it is a blend of proven technologies that were applied in a new way. Blockchain technology was particularly an orchestration of three technologies that made Satoshi Nakamoto’s idea very useful.

Digital Trust

Trust is a threat judgment between different parties. And for the virtual world, determining the trust is tending to boil down to further proving the authentication and proving authorization. With blockchain technology, private key cryptography will provide a powerful ownership tool that will meet the authentication requirements. To prove ownership, one must have a private key; it also spares a person from having to share more personal information. With that being said, authentication is not enough. Authorization is something that is needed to be distributed thru peer-to-peer networks.

Furthermore, the distributed network had to be committed to the transaction network’s recordkeeping and security. When a transaction has been authorized, it means that the entire system had applied the rules where it was designed. Whenever authentication and authorization are supplied through this, interactions in the virtual world need not rely on trust.

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