Blockchain is a public ledger of transactions, a distributed database that can be viewed by anyone thanks to a peer-to-peer network. The technology behind the cryptocurrency bitcoin, Blockchain is a digital and decentralized system that allows for the exchange of value without middleman or bank regulations.
The first model called a blockchain was created back in 1992 as a result of the work of computer scientist Stuart Haber and physicist W. Scott Stornetta, who utilized cryptographic mechanisms by physical tokens in a secured network. The work of Haber and Stornetta is certainly associated with that of Dave Bayer, Hal Finney, and other cryptographers and computer scientists, which led to the creation of Bitcoin as the first decentralized electronic money system (or simply the first cryptocurrency of its kind). The Bitcoin white paper was published in 2008, by the name Satoshi Nakamoto.
The blockchain technology is older than Bitcoin, but a basic component of cryptocurrencies is a blockchain-based, decentralized, distributed and public digital ledger that maintains a permanent chain of blocks that confirm previously confirmed transactions.
Transaction chains take place in a peer-to-peer network of computers a network of globally distributed nodes. Each node stores a copy of the blockchain and plays a role in the general operation and advancement of the network. This is why Bitcoin is a borderless currency that does not allow censorship and does not require third-party intermediation.
The blockchain’s code is designed with the intent of making it extremely resistant to fraud and cheat attempts (such as double-spending). No person can alter the information stored in the Bitcoin blockchain if the amount of electricity and computational capability required is prohibitively expensive. For this reason, the network enforces the claim that “original” digital documents are Bitcoins, making each Bitcoin unique and un-copyable.
The Proof of Work (PoW) consensus algorithm is what enabled Bitcoin to become a Byzantine fault tolerance (BFT) protocol, which means that its blockchain can function as a distributed network without compromising the security of any of the participants (nodes). The Proof of Work consensus algorithm is a component in the mining process of the Bitcoin currency.
The application of blockchain technology may also be engineered in other support and other sectors, such as healthcare, insurance, e-commerce, the Internet of Things, and so on. Blockchain technology was originally created to serve as a distributed ledger for decentralized systems, but it may be leveraged to supplement centralized systems, if necessary, to maintain the integrity of data or to reduce the cost of operation.