The term blockchain has been around for almost over a decade now. Whenever terms like Bitcoin, Ether, Ripple etc. are used, a term that is often used with them is Blockchain. This because most of the cryptocurrencies are built on this technology. So what exactly is blockchain?
The blockchain is a completely open source project that acts as a base framework for a lot of cryptocurrencies that include the likes of Bitcoin, Ether, Ripple.
Due to the way blockchain is designed, it is next to impossible to hack it or modify data. Let’s understand why it is so.
At its most elementary level, blockchain can be defined as a chain of blocks.
Blockchain technology operates in a quite interesting way. Information is stored in each block and a chain connects them all. Now a block contains 3 levels of data.
1. Data about cryptocurrencies, such as price. When a block reaches a specific number of approved transactions, a new block is created.
2. A hash code. A hash is a string of numbers and letters. Every time a change happens, a new hash is made.
3. Hash of the previous block. Hashes are cryptographic codes generated by special algorithms.
Blockchain can be explained as a decentralized and distributed ledger implemented by a unique network of servers.