{"id":5472,"date":"2022-11-08T20:05:55","date_gmt":"2022-11-08T20:05:55","guid":{"rendered":"https:\/\/kriptomat.cash\/what-is-blockchain\/"},"modified":"2024-06-19T11:18:02","modified_gmt":"2024-06-19T11:18:02","slug":"what-is-blockchain","status":"publish","type":"post","link":"https:\/\/kriptomat.hr\/en\/what-is-blockchain\/","title":{"rendered":"What is Blockchain?"},"content":{"rendered":"\t\t
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What is Blockchain?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Blockchain is an ever-growing list of electronic records in real time, with each block containing a timestamp, information about the previous block in the chain, and data . The blockchain architecture is therefore resistant to data changes within the blockchain chain. The first blockchain prototype<\/strong> occurs in the early 1990s when scientist Stuart Haber and physicist W. Scott Stornetta applied cryptographic techniques in the blockchain chain to protect digital data and documents from potential abuses. This event further inspired many other developers and cryptographic enthusiasts, which eventually led to the creation of Bitcoin as the first decentralized digital “cash” system or simply – the first cryptocurrency. BItcoin’s “White Paper” was published in 2008. under the pseudonym Satoshi Nakamoto. The Bitcoin protocol, which has an immutable, distributed blockchain at its core – has since continued to inspire others to develop numerous other cryptocurrencies and tokens that are based on blockchain.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Blockchain technology<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Blockchain technology is older than Bitcoin<\/strong> – it is a fundamental component of most cryptocurrency networks that acts as a decentralized, distributed and public digital ledger that permanently records all previously confirmed transactions in the blockchain. Transactions on the blockchain take place within a “peer-to-peer” network of globally distributed computers. Each computer represents a “node” in the network. “nodes” ) containing a copy of the blockchain, and contributing to the functioning and security of the entire network. This technology is called distributed ledger technology (DLT). Based on The DLT type of technology – Bitcoin is the first decentralized digital currency that does not require third-party mediation in order for transactions to take place. More about You<\/strong> can read Bitcoin on our blog, which guides you in detail through everything about this cryptocurrency<\/a>, and explains its consensus mechanism in more detail. Also, on one of our previously published blogs, you can learn all about the differences between bitcoin and gold<\/a>.<\/p>\n

Designed to be resistant to modifications and fraud such as double spending, blockchain today enables instant transactions in minutes anywhere in the world. The data that is stored in most cases on the blockchain network is precisely the transactions of selling and buying cryptocurrencies, and we can say that the blockchain functions like a “digital ledger”<\/strong> that contains all the essential information about transactions such as participants, amounts, success. With bitcoin, we are talking about the so-called “Proof-of-Work”<\/strong> consensus mechanism, which is exactly what allows Bitcoin that its blockchain can continuously operate as a distributed network, even if some of the participants show unfairness or inefficient functionality. The algorithm on which consensus is based is important for the mining process of Bitcoin.<\/p>\n

Blockchain Technology – Distributed ledger technology (DLT)<\/strong> Although it is designed to work as a distributed digital ledger on decentralized systems – blockchain can also be placed on centralized systems to ensure data integrity and kst to all users.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How does it work?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Let’s take Hansel and Gretel as an example and imagine that a transaction is taking place between them. For starters, Ivica buys from Marica a certain amount of bitcoin or some other cryptocurrency. After the transaction has been executed and confirmed – all the details of this purchase are recorded and added to the list. All lists containing transaction data are stored in one of the blocks in the chain, each of which has its own limit, that is – can not receive an infinite number of lists of transactions. This number depends on the potential of the individual network. When one block is filled, it connects to the previous block, whereby it becomes part of one long, chronologically complex chain. New transactions are further added to the list, which is further stored in the next empty block. Lists are stored in a block in such a way that the data cannot be changed, and that they provide chronological insight into transaction history. <\/p>\n

Confirm transactions<\/strong><\/span><\/p>\n

The blockchain is powered by a network of computers, which means that every computer that uses blockchain simultaneously acts as its engine. To become part of the network, you need internet access and a computer. All computers, i.e. all participants in the chain, check the details of the transaction to determine if it is valid. One way to check transaki is with the help of explorers that can be tied to only one cryptocurrency, such as in the case of Bitcoin – Blockchain explorer<\/a>, or for multiple cryptocurrencies – Blockchair explorer<\/a>. Given that each computer can see transactions from previous blocks, participants can easily determine the validity of new transactions. After the computers approve the transaction, it is stored in the block and added to the chain, after which it can no longer be changed. <\/p>\n

The main features of blockchain<\/strong><\/span><\/p>\n