Bitcoin - Introduction: Bit by the Block Chain Bug

So what exactly is the deal with a few blocks chained together on a public ledger anyway? And who really cares in the first place? Well—I don’t normally like to make assumptions about people, but the fact that you are reading this right now reveals to me one inescapable fact; you are among the many who would like to know more about block chain.

So having that established, what then is a block chain? Basically at its core, block chain technology is a means of creating an uninterrupted chain of data held in blocks that are all linked together and held in place by means of cryptographic equations. Each one of the chunks of data held in place like this on the block chain then holds on to something called a “hash pointer”.

This hash pointer then links up with the last block of data made, and a “timestamp” that carries the times of all of the transactional info that has been carried out. These block chains are considered to be “open distributed ledgers” and are able to take note of any and all exchanges made between two entities depositing data into the block chain.

These chunks of deposited data are usually maintained through a peer to peer network that works in tandem with a protocol for the validation of further blocks of data. As soon as this data is established within the chain as a transaction, it can not be changed thereby securing the exchange. This ensured security has led block chain platforms to be introduced in a wide variety of systems and usage cases, such as legal, medical, and business management.

Block Chain was first associated with the digital crypto currency known as Bitcoin. This currency and the block chain associated with it, was the work of the enigmatic figure known as Satoshi Nakamoto. Whoever this entity was, they just might be singlehandedly responsible to one of the biggest technological and sociological revolutions known to mankind.

Block chain’s cryptography was created especially for Bitcoin in order to solve the problem of “double spending”, using the infallible blocks in the chain to keep to users from spending at the same time. This was a brilliant solution for online digital currency, but as it turns out, this one innovation for Bitcoin has ramifications all across many aspects of our modern society. Ramifications that are still playing themselves out as the whole world seems to have been bit with the Block Chain Bug!

The Complete Guide to Understanding Block Chain Technology By Matthew Scott