What is Blockchain Technology

The famous question and most trended topic in the year 2017. Let’s explore more about it. These are concepts that come along when we talk about blockchain technology:

  • Open public Ledger
  • Mutually agreed upon on transactions
  • SHA256
  • Mining concepts
  • Bitcoin

Before we dive into more concepts related matters, let listen one of the TED TALKS explained about blockchain technology.

Lets get to the defination:

The blockchain is the decentralized transparent ledger with the transaction records—the database that is shared by all network nodes, updated by miners, monitored by everyone, and owned and controlled by no one.

Open decentralized public ledger

In previous days, people needed trusted third parties since trust is not easy value that we can give to other. That’s where transparency comes in. With blockchain technology, you can verify by yourself anything without needing other third parties to verify for you.

The blockchain technology comprises with three layers. First one, the Hashing methods, mining protocols, application layer.

SHA256

It is the hashing methods that used for the hashing transactions information in the network. Every transaction every made is hashed using SHA256 hashing function which has not yet been proven to break for the collusion.

Mining concepts

Blockchain technology is firstly and successfully applied in creating cryptocurrency, namely Bitcoin. The mining concept applied for Bitcoin is called us Proof-of-work concept.