What Is Blockchain Technology? Public vs Private blockchain | CryptoWord

1. What Is Blockchain:-

Blockchian is a Decentralized,Immutable and Distributed ledger system,and  Blockchain was adapted by Satoshi Nakamoto in 2009 to create the digital cryptocurrency Bitcoin

Blockchain is a chain of blocks,each block contains some data.the hash of the block and the hash of the previous block remain same,and the name of the first block is called Genesis Block

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2.Types of Blockchain:-

1.- Public Blockchain:-

Public blockchain are open source and not permissioned.Anyone can participate, without permission.Anyone can read transaction on the public block explorer. Transactions are transparent and anonymous.Public blockchain work on consensus mechanisms (POW OR POS)

2.- Private Blockchain:-

Private blockchain as its name suggests is a private property of an individual or an organization.Blockchains that are private or permissioned work similarly to public blockchains but with access controls.If we want to use their platform,then we must be take permission to access their system.

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3. Use Cases of blockchain:-

  • Supply Chain Management
  • E-Voting
  • Asset Managment
  • Digital Indentity
  • Healthcare
  • Education System
  • Smart Contracts
  • Distributed Storage
  • Manage Ownership Records (Notary)
  • Crowdfunding

Use cases of blockchain

Use cases of blockchain

4. Blockchain Vs Bitcoin:-

Many people confused about blockchain and Bitcoin,they think that blockchain and bitcoin are same or blockchain is based on bitcoin but this is not true. then what is bitcoin?

The technology behind the bitcoin is called blockchain,bitcoin is based on blockchain but blockchain is not besed on bitcoin,bitcoin is a application of blockchain.In simple word,if blockchain is internet then bitcoin is website or app.

Check bitcoin price:- bitcoin price today

Bitcoin is CryptoCurrency and a kind of electronic money. We can sent bitcoin from user to user on the peer-to-peer bitcoin network directly, without any Intermediaries. Transactions are verified by the miners.

5. Why Miners Verify Bitcoin Transactions:-

By mining,We can earn Bitcoin without Investing money in bitcoin.Miner will get reward after successfully completing block or transaction.First bitcoin was mined in 2009.

In 2009,For Mining one block,miner earn 50 BTC.In 2012, this was decrease to 25 BTC. in 2016, this was decrease to the current level of 12.5 BTC. In 2020 or so, the reward size will be decrease again to 6.25 BTC.

In Conclusion,Miners Verify transactions for getting Bitcoin Reward.

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