What is a Blockchain?
Blockchain is basically a technique to store information. To store the data in a decentralised manner. Decentralised means that there will be no central authority to control the entire data and information.
Take RBI for example. Our Indian rupees, this note of ₹500, is printed by the RBI. RBI guarantees that its value is ₹500. Neither ₹501 nor ₹502. It's even written on the note that RBI guarantees it. So RBI is basically a central authority controlling all the Indian rupee notes around the world. RBI can change the value of the notes if it wants to. Can increase the note production or decrease it.
But on the other hand, currencies like Bitcoin, are decentralised. There are no central agencies or authorities controlling Bitcoin. It is possible because Bitcoin is based on Blockchain. And Blockchain is the technology that actually makes Bitcoin decentralised. There can be many ways to store information. Writing down something on paper is a way to store information. Writing something on an excel file on the computer is a way to store information. On an excel file, your information is structured in the form of a table. You know the tables. Similarly, in a Blockchain, the information is structured in the forms of blocks. Each block is made up of three main things. First, any data or information you store in the block. Second, each block has its fingerprint known as Hash. This is the way to uniquely identify a block among other blocks. Every block has its own fingerprint. And third, each of these block stores the fingerprint of the block before it. This is a Blockchain. This block will have its own fingerprint and of the block behind it. And thirdly, any information you put into it will be stored here. This is how all the blocks are linked with each other. And the most unique thing about this is that If you want to change the data in any block, if you try to tamper with the data, then the fingerprint, or the hash, of the block will change. And if the hash of one block changes, the hash of the next block will also change. And the next and eventually the entire blockchain will be destroyed. For this reason, it is next to impossible to alter or tamper with the data in a blockchain. Because once a block is defined and becomes a part of the blockchain. It cannot be altered after that. The second major reason for Blockchains being secure is Decentralisation. You will not find a blockchain stored in only one computer. Blockchains are stored in a network of computers. All the computers around the world belonging to the participants of the blockchain will have one copy of this blockchain.
Instead of one central authority, it is managed and run by a network of computers collectively. The people who are connected to the blockchain through their computers and those who allow the blockchain to run on their computers they are known as Nodes. Some Nodes among them are Minors. Whenever new data is added to the blockchain, it's the work of the Miners to verify it. Whether the person adding the data has done so properly or not. Or whether it is an attempt at tampering. All the Miners verify and record this. Any computer connected to this network can see the data added to the blockchain. There is no need for any third party. No need for any Central Authority. You too can connect your computer to the network and verify this.
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