


“Bitcoin is first and foremost a currency; this is one particular application of a blockchain. However, it is far from the only application. To take a past example of a similar situation, e-mail is one particular use of the internet, and for sure helped popularise it, but there are many others.” – Dr Gavin Wood, Ethereum Co-Founder

What is Blockchain Technology?


Read to understand how a basic blockchain works How to Run a Blockchain on a Deserted Island with Pen and Paper



Why use the blockchain technology?


  • Be controlled by any single entity.
  • Has no single point of failure.




  • Transparency data is embedded within the network as a whole, by definition it is public.



Blockchain: A network of nodes



What is a Blockchain block?

A block is a container data structure. In the Bitcoin world, a block contains more than 500 transactions on average. The average size of a block seems to be 1MB. A block is composed of a header and a long list of transactions. Let’s start with the header.

what is blockchain blocks


  • The previous block hash. Remember that in a blockchain, every block is inherited from the previous block because we use the previous block’s hash to create the new block’s hash. For every block N, we feed it the hash of the block N-1.
  • The third part is a Merkle tree root. This is a data structure to summarize the transactions in the block. And we will leave it at that for now. More on this later.

This dependence of one pair on the previous pair makes it a chain, thus getting its name — Blockchain (a chain of blocks).




Blocks in Blockchain are tied to the next block by hashes. If data in one block is modified, hashes need to be recalculated for all the following blocks and since calculating the hash is a very resource intensive operation, it gets practically impossible to do that and hence the network rules out the invalidated block. The calculation of the hash is called mining. Here are some Crypto Mining Business Model Used Worldwide

Bitcoin is the result of mining. 

All the computers on the blockchain network, keep a copy of the full blockchain, so if one block or one complete chain at a particular computer or multiple computers is modified, the whole network tries to compare it with their own copies of the full chain.

The users’ safety when using the blockchain technology

In the case of blockchain technology, private key cryptography provides a powerful ownership tool that fulfils authentication requirements. Possession of a private key is ownership. It also spares a person from having to share more personal information than they would need to for an exchange, leaving them exposed to hackers.



Authentication and authorization supplied in this way allow for interactions in the digital world without relying on (expensive) trust. Today, entrepreneurs in industries around the world have woken up to the implications of this development – unimagined, new and powerful digital relationships are possible. Blockchain technology is often described as the backbone for a transaction layer for the Internet, the foundation of the Internet of Value.

Not all decentralized systems are Blockchain! The Blockchain technology is a particular type of decentralized system that has a unique property. 







what is the future of blockchain?


Is blockchain technology part of the future?

Most significant companies will run business processes on their private blockchains.

  • Private blockchains: Within the next years, major companies will conduct several business processes on their own private, permissioned corporate blockchains. Employees, customers, vendors, and service providers at each company will be able to securely access that company’s private blockchain via strong cryptographically authenticated transactions.
  • Business use of public blockchains: Some companies will employ public Ethereum with their use cases that employ the same stack of blockchain components that they have purchased or built for their private Ethereum-based implementations.


Important points of the blockchain technology:

  2. Each transaction generates a hash.
  3. A hash is a string of numbers and letters.
  4. Transactions are entered in the order in which they occurred. The order is very important.
  10. A Blockchain is effective as it is spread over many computers, each of which has a copy of the Blockchain.
  11. These computers are called nodes.
  12. The Blockchain updates itself every 10 minutes.