Buckle up your seatbelts because Blockchain technology is where the ride gets very interesting!When most people think of blockchain they think of Bitcoin, NFTs, or cryptocurrencies in general. While the original purpose of blockchain was to power those entities, blockchain technology is capable of so much more!
Blockchain technology is the most robust technology invented in human history, and this is why…
In essence, the blockchain is a digital ledger that is shared across a decentralized network of independent computers. It can be programmed to record and track anything of value from Financial transactions to identity and Medical records, even land titles.
Blockchain stores information in blocks and then distributes it across the network so that every computer on the network has the same information. If you need to make any changes to a block, you don’t just rewrite it. Instead the change is recorded and stored on a new block, showing that the change happened at a particular date and time. This dramatically reduces the ability for data tampering and makes Blockchain highly secure and transparent.
Another reason why Blockchain Technology is so appealing is its ability to create trustworthy data. Before a block can be added to a chain, a few things must occur. A cryptographic puzzle is solved, which initiates the process for creating a block. The computer (referred to as a node) that solves the puzzle shares the solution with all other computers in the network; this interaction leads to what is called proof-of-work. If the information is verified to be correct by other nodes constituting the network, a new block is added to the chain.
Finding out the truth is very important. It can be especially important when two people disagree. Imagine, a friend tells you that the earth is flat, and you say: no, it is a globe–we all know that. He persists and insists and a disagreement turns into an argument until finally you give up and say: okay, let’s seek the truth from the all-knowing university, Wikipedia. You go to your computer, type in IS EARTH A FLAT DISK OR A GLOBE? Now, if a malicious player is able to break into a centralized server and swap truth for fallacy then that server provides false information to your computer and notes that Earth is indeed flat.
Blockchain prevents such a scenario from happening by design. If an attacker breaks into a block and alters information then other nodes identify the discrepancy and reject it in the network update. The block is labeled compromised and false. And now you can prove to your friend that Earth is actually still round. “Wait, what if that was a 51% attack ?” Your friend is still not convinced.
Yes, a 51% attack is theoretically possible but highly implausible. It would require a miner to gain 51% of mining power to control the entire consensus, which, in itself, is antithetical to the purpose and decentralizing power of blockchain technology. Assuming 51% of mining power would be a ridiculously expensive task to execute due to the nature of proof-of-work protocol. Proof-of-work is thought to be an expensive protocol, because it demands both electricity and processing power,and if a miner attempts to seize the majority of consensus, the financial cost is so significant and prohibitive that it acts as a deterrent. Furthermore, the cost grows exponentially as the blockchain itself grows.
Blockchain is the truth machine!