Blockchain and Blockchain Technology: What are they? How do they work and how secure is it?
It consists of two words. The chain of the first block and the chain of the second block. In Blockchain technology, a block is a large collection of data. This means that the data of cryptocurrency is kept in these blocks. Different boxes contain data, i.e. currency, and they are linked together.
Dana Vishwakarma / New Delhi: In the last two parts, we discussed the ABCD of cryptocurrency. In the first part of this article, we covered the ABCD of cryptocurrency. Next, we discussed its potential in India. We describe the technology of cryptocurrency in the third part of the article. In other words, we describe blockchain technology.
Bitcoin - what is it?
In both earlier parts, we have used the name Bitcoin. This is a type of cryptocurrency. A cryptocurrency is a virtual currency. Cryptocurrencies are linked to Blockchains. Bitcoin has been making headlines for the past few months. Additionally, you'll be surprised to find out that, while the year 2020 was a year of turmoil for the country and the world, Bitcoin reached its all-time high this year. In 2010, the price of 1 bitcoin was less than 0.06 US dollars (about 2.85 rupees), but now the price of one bitcoin is 30 lakhs in rupees. Kshitij explains Blockchain has made this possible. This is because blockchain makes information safe, secure, and popular.
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What are the opinions of experts?
You must be wondering what the blockchain is. Kshitij explains that it consists of two words. The first chain and the second chain. Blocks are data blocks that are part of Blockchain technology. In other words, cryptocurrency data is stored in these blocks. Different boxes contain different types of currency, i.e. data, and they are interconnected. The result is a long chain of data. New data is added to the chain as it arrives. As soon as the block is filled with data, it is appended to the previous block. All blocks are connected in the same way.
Data, what is it?
In each block are the data, the hash, and the hash of the previous block. But what do these three things mean? Find out. Data that resides in the Bitcoin blockchain contains details about a transaction. It contains sender, receiver, and account information. Each block of data is encoded using cryptography technology, and then these blocks are linked together in a chain. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Blocks are connected to each other.
How does Hash work?
A hash can be viewed as a biometric that is unique to everyone. In other words, it's a code. Like your thumb impression, it's unique. A change in the block will change the hash code. Virtually every block is connected to every other block. There is no possibility of tampering with such a system. If you change the data in one block, you will have to change it in the other block as well.
After finding the hash, what happens?
By finding a strong hash, a miner secures a block, which is then added to the blockchain and verified by other nodes in the network. This process is known as consensus.
Once consensus has been reached, what happens?
The block is confirmed secure if the consensus is reached. A crypto coin is given to the miner who secures it if it is found to be accurate. It is considered proof of work.
How does crypto mining work?
Cryptocurrency Mining is the process of buying through cryptography, as someone created digitally all information in the database. A miner is someone who does this.
Is it hackable? Can it be tampered with?
Blockchain can be used not only for currency like Bitcoin but also for a variety of other purposes. It is an extremely secure, safe, and decentralized technology that is almost impossible to hack or tamper with. However, hackers can do anything they want.
Blockchain Technology: What is it?
Gaurav Garg responds that it is a kind of exchange process. The process runs on the data block. Due to the fact that these blocks are electronically connected, they are protected by encryption. This is old technology. Stuart Huber and W Scott Stornato adopted it for the first time in 1991. By using blockchain, Satoshi Nakamoto revolutionized the world by inventing Bitcoin in 2009. Its main purpose was to timestamp digital documents so that they could not be altered.
How do Bitcoin and Blockchain differ?
In both Bitcoin and Blockchain Technology, there is a difference between the ground and the sky. They are completely different. Actually, Blockchain is a technology, a platform that can digitize and record anything, not just digital currencies. It is a digital ledger. In contrast, Bitcoin is a digital medium, through which some things are sold and purchased. It has no real value in the real world, so it cannot be called a currency. However, Kshitij points out that bitcoin is only one example of a cryptocurrency; other cryptocurrency networks are also powered by blockchain technology.
What's happening with cryptocurrencies in China?
Recent weeks have seen China take a tough stance on crypto mining by shutting down operations in at least five provinces or regions rich in coal or hydroelectric power, with experts arguing that its own environmental policy plays a major role in the action. Particularly, China's carbon neutrality policy caused a shortage of energy due to a sharp reduction in coal-fired electricity, which accounted for more than 57% of the country's energy consumption.
In which countries do cryptocurrencies exist?
According to Gaurav, mining cryptocurrency is banned in countries like China and Thailand. Bitcoin rates dropped sharply when China enacted the ban. Since then, it has also been banned in Thailand. Thailand's Securities and Exchange Commission (SEC) has banned China has taken a tough stance on crypto mining by shutting down operations in at least five provinces or regions rich in coal or hydropower over concerns about excessive speculation, according to Horizon. According to the experts, this is due to China's own environmental policy. In India, cryptocurrencies will be legal or banned. The government has not spoken openly about this yet.
In which countries do cryptocurrencies exist?
According to Gaurav, mining cryptocurrency is banned in countries like China and Thailand. Bitcoin rates dropped sharply when China enacted the ban. Since then, it has also been banned in Thailand. Thailand's Securities and Exchange Commission (SEC) has banned China has taken a tough stance on crypto mining by shutting down operations in at least five provinces or regions rich in coal or hydropower over concerns about excessive speculation, according to Horizon. According to the experts, this is due to China's own environmental policy. In India, cryptocurrencies will be legal or banned. The government has not spoken openly about this yet.
