Learn how blockchain works in 6 min

"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?

• 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.

• 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.

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.

  

What to learn more about blockchain?