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Blockchain - The Tech Behind Cryptocurrency


8th October 2008, Satoshi Nakamoto released the white paper of bitcoin. This white paper wasn't any other authoritative document but it was beginning of an biggest ever digital revolution man kind will ever see.

3rd January, 2009,  The bitcoin network came to life , Nakamoto did first transaction and produced the genesis block of bitcoin. 

But bitcoin wasn't the "THE BIGGEST EVER DIGITAL REVOLUTION" I was talking about. It was the tech behind bitcoin, BLOCKCHAIN . People think Nakamoto invented blockchain because of bitcoin but what I think is just the opposite of it. 

What is blockchain ?

Blockchain is a new type of internet. Unlike internet blockchain is distributed, public ledger. Just like facebook is an application of internet blockchain is of application of  blockchain. Major difference between internet and blockchain is that internet is an network based on intermediaries whereas blockchain is a peer - to - peer network. 

For Example lets consider journey of a cell phone which is manufactured in China and sold in Indian market. 

It invloves complex network of legal, financial, regulatory, manufacturing and commercial practices. Under current supply network one has to deal with intermediaries on every step from govt. officials, dealers, banks, etc., this consumes time.
This is where blockchain comes into the picture it has capabilities to eleminate these vulnerabilities.

Blockchain is an universal ledger. All transactions done during the course of trade are synchronized and recorded securely on this ledger.



Each Transaction is provided a block.



Each Block is connected to one before and after.


Groups of transactions are blocked together & fingerprint of block is added to next thus creating a irreversible change.




That's why blockchain is ideal for recording all the transactions occurred while trading a cell phone from China to India. It can trace the path of a cell phone from the very beginning to the end with exceptional security and transparency.

I will be discussing more about blockchain in coming blogs so stay tuned and don't forget to subscribe.  
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