"Dogecoin to the moon!" Have you heard this catchphrase?

A dog (Shiba Inu) is travelling to the moon.

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.

A series of digital chains forming a web

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.

A chain which is representing the connection between various blocks within a blockchain.

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.

  • Flaticon IconLess likely to fail: Security failure of blockchain networks is rare, as every block within the network needs to be modified for a successful attack.

    Flaticon Icon

Traditional databases are:

  • Centralized: Data are usually stored in a central server or cloud.

  • Flaticon IconMore likely to fail: Because they're centralized, databases are more prone to security threats because attackers can target a single point.

    Flaticon Icon

Quiz

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

Take Action

A Rugrats character singing,

What to learn more about blockchain?

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This Byte has been authored by

AR

Abu Hasnat Md Rhydwan

Learning Designer I Research Enthusiast