The first thing to understand about blockchain is that it’s not a database. A database stores data in records, which are then organized into tables. Blockchain, on the other hand, stores data in blocks that are chained together.
What this means is that each block contains a hash of the previous block, as well as a timestamp and data. The data in a blockchain can be anything, but it’s most commonly used to store transaction information.
How Does Blockchain Work
Now that we know what blockchain is, let’s take a look at how it works. As we mentioned before, blockchain is made up of blocks that are chained together. Each block contains a hash of the previous block, as well as a timestamp and data.
The data in a blockchain can be anything, but it’s most commonly used to store transaction information. When a new block is created, it is added to the chain and the entire chain is updated.
This makes it very difficult for someone to go back and alter the data in a blockchain. In order to do so, they would need to change the data in all of the blocks that come after it.
This is one of the key benefits of blockchain: it is incredibly secure.
What is a Smart Contract
A smart contract is a type of contract that is written in code. Smart contracts are executed automatically when certain conditions are met.
For example, let’s say you have a contract with your cable company. The contract stipulates that you will pay $100 per month for cable service. With a smart contract, this transaction could be automated. Every month, the $100 would be automatically deducted from your bank account and paid to the cable company.
If the conditions of the contract are not met, then the transaction does not take place. This offers a higher degree of security than traditional contracts.
What is a Decentralized Application
A decentralized application (DApp) is an application that runs on a decentralized network. A DApp can be anything from a social media platform to a financial service.
The key difference between a DApp and a traditional application is that a DApp is not controlled by any single entity. Instead, it is run by a network of computers that are spread across the globe.
This makes DApps incredibly secure and resilient. If one computer in the network goes down, the DApp can still continue to function.
To Implement Digital Currency
Digital currency is a type of currency that is created and managed electronically. Bitcoin, for example, is a type of digital currency.
Digital currencies are often decentralized, which means they are not subject to government or financial institution control.
Blockchain can be used to create and manage digital currencies. This offers a number of advantages over traditional fiat currencies.
For one, digital currencies are not subject to inflation. This is because there is a limited supply of digital currency units.
Another advantage of digital currencies is that they can be used to buy goods and services online. This opens up a whole new world of possibilities for businesses and consumers alike.
