What Is Blockchain? A Simple Guide for Beginners

Understanding Blockchain in the Simplest Way Possible

The notebook acts as the blockchain. Blockchain offers the same level of security as a normal database. In the case of a regular database, anyone with access can edit or delete data at any time. When something has been added to the blockchain, it cannot be changed because all subsequent entries depend upon the previous entry. This is one of the reasons blockchain is viewed as one of the most trustworthy and secure means of storing information. Blockchain provides a platform for a digital "ledger" for every type of transaction that occurs within almost every industry today, including the banking industry, retail industry, and even manufacturing industries.

How Blockchain Works – Broken Down into Simple, Everyday Examples

To teach people about how to Understand Blockchain Technology, it’s important to break down Blockchain into an easy-to-identify Real example. When a group of people wants to keep track of who owes whom money after going out for snacks, instead of having 1 person keep track of this information (in a single register), each individual will write down the money owed to them by others in their own Notebooks. I.e., if I paid $20 for a Pizza and the Person I’m buying it from also paid $20.00, I would write that down in my Notebook and Database. Then, when I paid someone for a Pizza gift Card or whatever, I would also write that down in my Notebook.

 Then, as soon as I paid someone for something, all of the People in our Group (including myself) would automatically update their Notebooks. In this case, as long as everyone maintains and updates their Notebooks simultaneously, no one can cheat because Everyone has the Same record. This is Similar to How Blockchain Works. If someone were to attempt to change any item for that block, Then This Change Will Alter The Hash of That Particular Block. However, since the Next Block Will Store the Old Hash, this is how you can see that Something Is Wrong with the very Next Block to follow the Block That Has Just Been Altered. At this Stage in the Chain Chance of Cheating or Manipulation Is So Slim that it is Next To Impossible. Also, because Blockchains Are “Decentralized”, there is No One at the Top of The Blockchain like Your Bank or any other Centralized Authority over the System. Rather, Many Computers (“nodes”) are All Sharing The Same Version Of The Blockchain; therefore, even if, for Example, One Computer Receives a Virus or crashes and went Off line, The Article information or Data Would Remain Secure with the Other Computers As Well.

 Why is Blockchain One of the Most Secure Available Technologies Today?

 The answer lies in its overall structure and technology. Because the entire blockchain system consists of interconnected blocks, any altered information is very difficult to alter. Therefore, if a hacker were to alter one block, he would need to change each of the subsequent blocks on thousands of different computers simultaneously - this is virtually impossible. Also, blockchains utilize advanced cryptographic techniques to protect information with sophisticated math rather than by means of passwords that can be stolen or guessed easily. 

Additionally, a major benefit of using blockchain technology is its decentralization. In traditional banking institutions, for example, all the data is stored in a single central location. This means that if a hacker were to successfully breach that centralised storage area, he would have complete and total access to all that information and the ability to alter and steal everything he wanted. With blockchain, the information is stored across many computers. If a single computer were to be compromised, it would not affect the integrity of the entire blockchain since all other computers would have the accurate data. Finally, blockchain is also completely transparent; therefore, by using blockchain technology, it is virtually impossible for someone to commit fraud, because everyone can see all transactions that have been recorded publicly on all existing public blockchains, such as Bitcoin.

Real-World Implementation or Use Cases of Blockchain Technology, Not Just Cryptocurrencies

Blockchain technology is perceived by many newcomers as only being relevant to Bitcoin or other Cryptocurrencies; however, Blockchain Technology is so much more than that! It is impacting many industries on a global scale and bringing about change. For instance, in the Banking & Financial Services industry, Blockchain is being used to facilitate more efficient international payments, thus allowing people to send different types of funds cheaper and faster and even more securely than previous methods. Transactions that took several days to complete can now be completed in a matter of minutes due to the fact that Blockchain eliminates the need for intermediaries or third-party organizations. In addition, Blockchain provides enhanced supply chain visibility by providing the ability for a business to monitor the movement of products from manufacturers/producers to retailers/wholesale distributors.    

The Government has also started to investigate how to utilize Blockchain Technology for voting, tracking land records, verifying identities, and distributing universal basic income to create transparency and minimise corruption when creating a system to ensure fairness and integrity within its electoral and welfare Systems. The Entertainment Industry also uses Blockchain for Copyright Protection so that artists are fairly compensated. One of the most powerful features of Blockchain Technology is the Smart Contract, which makes it possible for parties to come together and agree to the terms of an agreement and have that contract automatically enforce itself when the conditions specified in the terms of the contract have been met without the need for lawyers and other agents. For example, if a customer orders a shoe, the customer can set the smart contract to release a fund transfer upon delivery of the shoe. This eliminates unnecessary delay, saves time, reduces costs, and helps eliminate disputes.

How to Begin Learning Blockchain and Establish a Career Ready for the Future

Blockchain technology is not as complicated to learn as most beginners may think; all you need to do is start with the fundamentals. Understanding the basic concepts of blockchain (How does blockchain work? What is the security of blockchain?), determining the applicability of the Blockchain technology, then you will have an understanding of the blockchain solutions for businesses, blockchain infrastructures, a nd Blockchain Networks, as well as the types of users that can benefit from blockchain.

After having an understanding of the basic concepts of Blockchain, you may wish to begin exploring additional platforms; many people start researching Blockchain and reviewing other Platforms before coding. If you wish to become a blockchain Developer, then you may wish to learn programming languages, e.g., Solidity (written in Ethereum smart contracts), JavaScript (used in Decentralized Apps, Dapp), and Python (used in Smart Contracts). All of these programming languages will enable you to create dApps and Smart Contracts.

There are also non-technical careers that exist in the Blockchain space. These include blockchain analyst, blockchain consultant, blockchain project manager, blockchain quality tester, and blockchain research analyst. You could become one of these career paths, or you may decide to be employed in a technical career path, such as Blockchain Development.