Blockchain was originally made to become a large book decentralized from Bitcoin transactions that occur in the Bitcoin network. Decentralized or distributed or distributed databases basically means that storage devices, where large books are not related to general processors. Blockchain contains a list of growing transactions by blocking blocks. Each block is stamped time and then linked to the previous block to be part of the Blockchain.
Before the computer, people save their important documents by making a lot of copies of them and saving them in a steel safe that cannot be penetrated, burying treasure chests, or bank safes. As a measure of additional security, you will translate each of these documents into secret language that you can only understand. That way, even if someone manages to get into your bank safe and steal your belongings, they will not be able to understand your faint message, and you will still have a lot of reserves stored in another location.
Blockchain places this concept on steroids. Imagine you and a million friends can make a copy of all your files, encrypt them with special software, and save them in your respective digital bank safes (computers) throughout the internet. That way even if a hacker breaks through, stealing, or destroying your computer, they cannot interpret your data, and your friend’s network still has 999,999 backup your files. In short blockchain.
Special files, randomized with encryption software so that only certain people can read them, stored on normal computers, connected together through the network or through the internet. These files are called ledgers – they record your data specifically. Computers are called nodes or blocks – personal computers that share processing power, storage space, and bandwidth with each other. And this network is called a chain – a series of connected blocks that allow computers to work together to share ledgers from each other (hence name, blockchain).
The social impact of Blockchain technology has begun to be realized and this might be just the peak of the iceberg. Cryptocurrency has provided doubts for financial services through digital wallets, ATM launches and loan provisions and payment systems. When considering the fact that there are more than 2 billion people in the world today without bank accounts, such changes of course are life modifiers and can only be positive.
Maybe the cryptocurrency shift will be easier for developing countries than the process of fiat money and credit cards. On the one hand, it is similar to the transformation that developing countries have cell phones. It’s easier to get a number of cellphones in bulk than providing new infrastructure for household phones. Decentralization from the government and control of community life is likely to be adopted by many people and social implications can be very significant.