What is Blockchain?


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    When Did It Appear??

    The first work on cryptographically secure blockchains was described in 1991 by Stuart Haber and W. Scott Stornetta. In 1992 Bayer, Haber and Stornetta incorporated Merkle trees into the design, which allowed several documents to be aggregated into a block, increasing its efficiency.

    The first blockchain was conceptualized in 2008 by a person (or group of people) known as Satoshi Nakamoto. It was implemented by Nakamoto the following year as a core component of the cryptocurrency bitcoin, where it served as the public ledger for all transactions on the network. With the use of a blockchain, bitcoin became the first digital currency to solve the double spending problem without requiring a trusted authority and inspired many additional applications.

    What Exactly Is Blockchain?

    Blockchain describes the chain structure consisting of blocks. Blockchain provides tracking of encrypted transactions as a distributed database system. Blockchain facilitates processes such as recording transactions and tracking assets in the business network. At the same time, this system can be thought of as a notebook that can be shared and cannot be modified.

    Why Is Blockchain Technology Important?

    In order for business processes to operate safely and efficiently, information must be transferred as quickly and accurately as possible. The main benefit of blockchain at this point is that it is a ledger that only network members with permission can access. Moreover, members who can access the system cannot make any changes to the data. Another feature that makes Blockchain ideal is that it has a structure that can be shared and provides transparent information. This is a reassuring element for the user.

    How Blockchain Works?

    Blockchain does not have a centralized system. Data in the blockchain can be accessed via all computers. In addition to accessing information, it is also possible to transparently access information such as who the transactions made here belong to and when they were made.

    Since the transactions made in this technology cannot be changed, a new record is added to the system when a correction is requested. Thus, all details are preserved and all correct and incorrect actions can be observed.

    In Blockchain technology, the identity is created in the form of a user identification number recognized by all networks. Thus, instead of using personal information such as user name and surname, all transactions are made with this identification number. The transactions made here are encrypted with mathematical calculations in the user’s system, that is, hash functions and recorded on the chain.

    Character strings created with hash functions consist of letters and numbers. With the slightest change to be made, a different series is formed.

    All transactions are verified by the user and the records become permanent. This shows that this technology is not centralized. In short, the elements that make blockchain technology important are; It has an anonymous structure, is not a centralized system, and is unbreakable and unhackable.​


    Source: İşbank, Wikipedia

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