What Is Block Chain?

ever wonder if there's an easier way to

complete transactions without having to

deal with online wallets banks and

third-party applications well it's

possible thanks to blockchain here's

everything you need to know about

blockchain imagine four friends Jack Ted

Sam and Phil meet up for dinner after

they're done

Jack pays the bill and all of them

decide to split the expense amongst each

other now on the next day when Phil

sends his chair to Jack via online money

transfer the transaction goes through

without a hitch then Ted and Sam's and

their respective shares to Jack but

their transactions don't go through the

failed transaction sites some issues at

the bank

that's when Jack comes to know about the

many ways a bank transaction could fail

it could be due to technical issues at

the bank one of their accounts were

hacked daily transfer limits being

exceeded in sometimes additional charges

like transfer charges associated with

transferring money to solve these

problems the concept of cryptocurrency

came into existence cryptocurrencies are

a form of digital or virtual currency

that run on a technology known as

blockchain thanks to blockchain crypto

currencies are immune to counterfeiting

don't require a central authority and

are protected by strong and complex

encryption algorithms and in a market of

more than thousands of crypto currencies

like litecoin aetherium c cache and so

on one reigned supreme bitcoin now let's

go back to our previous example and have

filled Ted and Sam Sann Jack to bitcoins

each as their contribution to the

previous night's dinner let's assume

fill Ted and Sam have three bitcoins in

reserve while Jack has five first phil

simms two bitcoins to jack a record is

created in the form of a block the

transaction details between them is

permanently inscribed in this block this

record also holds the number of bitcoins

each of the friendzone

so after Phil's transaction jack has

seven bitcoins

while phil has one following this Sam

and Ted's and two bitcoins to Jack a new

block is created for each of these

transactions these blocks hold the

transaction details as well as how many

bitcoins Sam Ted and Jack have in

reserve these blocks are linked to each

other as each of them takes reference

from the previous one for the number of

bitcoins each brand owns this chain of

Records or blocks is called a ledger and

this ledger is shared among all the

friends which acts as a public

distributed ledger this forms the basis

of blockchain so what happens when phil

has only one Bitcoin left and he tries

to send two more bitcoins to Jack the

transaction will not go through this is

because all his friends have copies of

the ledger and it's clear that phil has

only one Bitcoin left his friends will

flag this transaction as invalid a

hacker will not be able to alter the

data in the blockchain because each user

has a copy of the ledger the data within

the blocks are encrypted by complex

algorithms all of this is made possible

with the help of blockchain technology

blockchain can be described as a

collection of records linked with each

other

strongly resistant to alteration and

protected using cryptography now let's

have a closer look at the Bitcoin

transaction between Jack and phil and

find out how it works every user in the

Bitcoin network has two keys a public

key and a private key the public key is

an address that everyone in the network

knows of like an email address of a user

the private key is a unique address that

only the user has knowledge of something

like a password first bill passes the

number of bitcoins he wants to send to

Jack along with his and Jack's unique

wallet address through a hashing

algorithm all of this is part of the

transaction details these details are

encrypted using encryption algorithms

and using fills unique private key this

is done to digitally sign the

transaction and to indicate that the

transactions came from Phil this output

is now transmitted across the world

ever wonder if there's an easier way to

complete transactions without having to

deal with online wallets banks and

third-party applications well it's

possible thanks to blockchain here's

everything you need to know about

blockchain imagine four friends Jack Ted

Sam and Phil meet up for dinner after

they're done

Jack pays the bill and all of them

decide to split the expense amongst each

other now on the next day when Phil

sends his chair to Jack via online money

transfer the transaction goes through

without a hitch then Ted and Sam's and

their respective shares to Jack but

their transactions don't go through the

failed transaction sites some issues at

the bank

that's when Jack comes to know about the

many ways a bank transaction could fail

it could be due to technical issues at

the bank one of their accounts were

hacked daily transfer limits being

exceeded in sometimes additional charges

like transfer charges associated with

transferring money to solve these

problems the concept of cryptocurrency

came into existence cryptocurrencies are

a form of digital or virtual currency

that run on a technology known as

blockchain thanks to blockchain crypto

currencies are immune to counterfeiting

don't require a central authority and

are protected by strong and complex

encryption algorithms and in a market of

more than thousands of crypto currencies

like litecoin aetherium c cache and so

on one reigned supreme bitcoin now let's

go back to our previous example and have

filled Ted and Sam Sann Jack to bitcoins

each as their contribution to the

previous night's dinner let's assume

fill Ted and Sam have three bitcoins in

reserve while Jack has five first phil

simms two bitcoins to jack a record is

created in the form of a block the

transaction details between them is

permanently inscribed in this block this

record also holds the number of bitcoins

each of the friendzone

so after Phil's transaction jack has

seven bitcoins

while phil has one following this Sam

and Ted's and two bitcoins to Jack a new

block is created for each of these

transactions these blocks hold the

transaction details as well as how many

bitcoins Sam Ted and Jack have in

reserve these blocks are linked to each

other as each of them takes reference

from the previous one for the number of

bitcoins each brand owns this chain of

Records or blocks is called a ledger and

this ledger is shared among all the

friends which acts as a public

distributed ledger this forms the basis

of blockchain so what happens when phil

has only one Bitcoin left and he tries

to send two more bitcoins to Jack the

transaction will not go through this is

because all his friends have copies of

the ledger and it's clear that phil has

only one Bitcoin left his friends will

flag this transaction as invalid a

hacker will not be able to alter the

data in the blockchain because each user

has a copy of the ledger the data within

the blocks are encrypted by complex

algorithms all of this is made possible

with the help of blockchain technology

blockchain can be described as a

collection of records linked with each

other

strongly resistant to alteration and

protected using cryptography now let's

have a closer look at the Bitcoin

transaction between Jack and phil and

find out how it works every user in the

Bitcoin network has two keys a public

key and a private key the public key is

an address that everyone in the network

knows of like an email address of a user

the private key is a unique address that

only the user has knowledge of something

like a password first bill passes the

number of bitcoins he wants to send to

Jack along with his and Jack's unique

wallet address through a hashing

algorithm all of this is part of the

transaction details these details are

encrypted using encryption algorithms

and using fills unique private key this

is done to digitally sign the

transaction and to indicate that the

transactions came from Phil this output

is now transmitted across the world

using Jack's public key with this the

message or transaction can be decrypted

only by Jack's private key which only

jack has knowledge of different crypto

currencies use different hashing

algorithms while Bitcoin use

is the sha-256 algorithm etherium which

is also a famous cryptocurrency uses one

known as ether this transaction and

several other similar ones are taking

place all around the world these

transactions are validated and then

added block by block the people who

validate these blocks are called miners

for a block to be validated and added to

a blockchain miners need to solve a

complex mathematical problem the miner

who solves this first adds the block to

the blockchain and is rewarded with 12.5

bitcoins the process of solving the

complex mathematical problem is called

proof of work and the process of adding

a block to the blockchain is called

mining with this Phil and Jax wallets

are updated just like every person in

the network who has completed a

transaction now that you know about

blockchain and it's important concepts

time for a small quiz what is the

concept of blockchain that ensures data

cannot be altered by any of the users

within the network a public distributed

ledger be proof of work see proof of

stake D hash encryption let us know what

you think is the right answer in the

comments below three lucky winners will

get Amazon gift vouchers details are

mentioned in the description below let's

have a look at how Walmart uses

blockchain to provide its customers with

better service Walmart was facing

problems in delivering quality products

to its customers they were facing a high

return rate and large amounts of refunds

due to their products bad quality they

were unable to determine the point of

failure in the supply chain which

started from farm to storage to

transportation to processing all the way

to the customer then Walmart adopted

blockchain technology with blockchain

the quality of the goods at each step

was permanently inscribed within a block

for example when a customer Flags a

product has damaged it can be correctly

identified where the product got damaged

in the entire supply chain thus helping

Walmart to identify the problem areas

and fixing them

this is just one of several ways

blockchain is used in real-life

applications can you think of any others

let us know in the comments down below

that's all for now

using Jack's public key with this the

message or transaction can be decrypted

only by Jack's private key which only

jack has knowledge of different crypto

currencies use different hashing

algorithms while Bitcoin use

is the sha-256 algorithm etherium which

is also a famous cryptocurrency uses one

known as ether this transaction and

several other similar ones are taking

place all around the world these

transactions are validated and then

added block by block the people who

validate these blocks are called miners

for a block to be validated and added to

a blockchain miners need to solve a

complex mathematical problem the miner

who solves this first adds the block to

the blockchain and is rewarded with 12.5

bitcoins the process of solving the

complex mathematical problem is called

proof of work and the process of adding

a block to the blockchain is called

mining with this Phil and Jax wallets

are updated just like every person in

the network who has completed a

transaction now that you know about

blockchain and it's important concepts

time for a small quiz what is the

concept of blockchain that ensures data

cannot be altered by any of the users

within the network a public distributed

ledger be proof of work see proof of

stake D hash encryption let us know what

you think is the right answer in the

comments below three lucky winners will

get Amazon gift vouchers details are

mentioned in the description below let's

have a look at how Walmart uses

blockchain to provide its customers with

better service Walmart was facing

problems in delivering quality products

to its customers they were facing a high

return rate and large amounts of refunds

due to their products bad quality they

were unable to determine the point of

failure in the supply chain which

started from farm to storage to

transportation to processing all the way

to the customer then Walmart adopted

blockchain technology with blockchain

the quality of the goods at each step

was permanently inscribed within a block

for example when a customer Flags a

product has damaged it can be correctly

identified where the product got damaged

in the entire supply chain thus helping

Walmart to identify the problem areas

and fixing them

this is just one of several ways

blockchain is used in real-life

applications can you think of any others

let us know in the comments down below

that's all for now

thank you for watching and stay tuned

for more

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