"Dogecoin to the moon!" Have you heard this catchphrase?
It went viral after the sudden rise of the price of Dogecoin, a cryptocurrency.
Have you ever wondered about blockchain, the key technology that allows these cryptocurrencies to function?
What Is Blockchain?
Blockchain is a distributed ledger that keeps a record of user data.
Unlike a traditional database, it stores data in a decentralized manner. That means the data inside a blockchain network are not stored at a single point.
As the name suggests, blocks of user data are connected to each other through a chain.
How Does Blockchain Technology Work?
In a blockchain network, every node or user receives a copy of the full record of data that has been stored in the blockchain since it began.
Every block is connected to its previous block through its block hash, a unique reference number that identifies a block.
In the case of cryptocurrency, every user gets access to the transaction history of every block within the network.
Cryptocurrency transactions are secure because modifying data inside a block is almost impossible, as it's highly time-consuming and can be easily tracked.
What Makes Blockchain Special?
Blockchain's structure differs a lot from traditional databases.
Blockchain networks are:
Decentralized: Does not use any central database to store data.
Less likely to fail: Security failure of blockchain networks is rare, as every block within the network needs to be modified for a successful attack.
Traditional databases are:
Centralized: Data are usually stored in a central server or cloud.
More likely to fail: Because they're centralized, databases are more prone to security threats because attackers can target a single point.
Stata Inc. has recently faced a breach in their database. The company is using a cloud-based service to store their data. What changes will make their service more secure?
Tracking every change in the network
Shifting to a decentralized network
Allowing trusted users into the network
All of these
What to learn more about blockchain?
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This Byte has been authored by
Abu Hasnat Md Rhydwan
Learning Designer I Research Enthusiast