What Is Blockchain? How Does It Work? What Does It Do?


The Internet has also digitised our money and wallets. Economies and currencies are changing. Now the most earning investments are not cars, real estate, banknotes, gold, but Bitcoin and other cryptocurrencies. In today's article we will tell you about the blockchain technology that builds the infrastructure for many of these digital currencies.

Blockchain Is A Digital Notebook

Blockchain is simply a distributed database. Just as each system now has a fixed database, provided by servers, where data is kept, this is the case with blochain. But it's distributed. Blockchain trades without being connected to a hub. Thus, all operations performed on the network take place between people without the need for an intermediary institution.

Each unit of this digital notebook is called a ‘block’. These blocks can never break the order in which they were created, and they are arranged in this way. Think of it as the pages of the notebook. Just as you can't change pages in the notebook, it's impossible to change the Rings of the chain in the blockchain.

The project in which the Blockchain system was first used was Bitcoin. People are part of this system and use the processing powers of their computers to enable the exchange of money in the system. In return, they are rewarded with Bitcoin.

Money Transfers Safer With Blockchain

Money transfers with Blockchain are impossible to break with today's methods, thanks to special encryption methods and high security features. For this, security measures need not be improved or quantum computer systems need to be expanded. These methods are very, very unlikely in a sector with such a high trading volume…

Blockchain Could Replace Law Firms Or Banks

Until now, investment types have changed constantly, but legal methods and bank systems have remained constant. Blockchain is an intangible substance that consists of electronic contracts. When people learn the details of this technology they can become the director of their own bank, their own financial expert or their own legal adviser. Let's explain this again by giving an example in order to be better understood.;

If Person X wants to give an automatic payment order to pay the rent, person B only needs to know the door number. Thus, a person-to-person e-transfer event occurs. That way you don't need intermediaries like banks. In addition, the transactions will take place directly between 2 people, thus eliminating the possibility of charges and fraud given to intermediaries.

The First Blockchain Was Founded In 2009

The first blockchain was designed in 2009 by the person or persons using the pseudonym Satoshi Nakamoto. Using this technology, he introduced a cryptocurrency called Bitcoin into the virtual world. Bitcoin, which was valued at $ 0.50 when it first came out, has soared to 19600 levels.

The most important thinking about why blockchain was designed is illustrated by the economic crisis in 2007 – 2008. Because people needed an alternative system to banks during this period.

Blockchain Technology Is Good But Is It True That Cryptocurrencies Promise The Worst?

This remark is not true when actually viewed. Because that's out of the question. When we look at a cryptocurrency like Bitcoin, we see the best implementation of the blockchain system. People agree to be part of this system to win prizes and get Bitcoin. Thus, because everyone gets paid financially, many people in the world are involved in this network. There's a very strong distributed structure in the middle. If the people in the blockchain do not receive a reward as cryptocurrencies, they will not include the computers they have collected for thousands of TL in this chain.