What is Blockchain? Blockchain Technology Explained | Blockchain Tutorials for Beginners

Blockchain. A growing and future
technology. This is what we are going to discuss about today in this session. So
in this video I shall be giving you an overview of the technology called
blockchain Welcome to Intellipaat guys so without
wasting much of the time let’s us quickly go through the agenda of today’s
video so we shall first be learning about what
is blockchain to understand it better, we would be looking at some of the
important features of blockchain followed by the built-in features that
make blockchain a safe and secure technology and then we shall understand
how actually blockchain works, what is the internal mechanism of blockchain.
We shall also be seeing its use case to understand its implementation in real
life and finally what career growth it has got to offer you. So let’s get
started. So what is blockchain. Blockchain as name suggests it is nothing but a
linear chain of blocks, it is a digital ledger that holds information of
transactions taking place over the web so every block here contains data in the
form of coding that is organized in chronological manner. So this is the
simplest definition to understand what is blockchain. Let us now go through
various features of blockchain that make this technology a strong contender for
the top technologies in the near future so this technique was originally
described by a group of researchers in 2008 and was originally intended to
timestamp digital document to ensure no one could tamper the data that had once
passed through the server. So blockchain actually uses a decentralized structure
to process the transactions. It created a peer-to-peer or a distributed
environment with immutability and all this led to the most important
advantages of using this technology and that is security so it gives this
security to your transactions. Now let’s go through each of these in detail.
Decentralized network so what does it mean and what all advantages it brings
along. So this technique is built on decentralized structure that means it
eliminates the need of a single or centralized system
that would be in charge of all the transactions taking place across the
network. Since there is no centralized system there is no single authority it
has got a distributed Authority and hence not a single entity or a person is
in charge of everything. Due to this your transactions get faster since it is a
direct communication and all this would eventually lower down your cos, don’t
really need to pay the fee amount that an intermediary would charge you for
lending you their services and giving your platform. I hope it’s clear to you
guys right so let’s move ahead. Now let us move on to the second feature which
is distributed network. Now blockchain works on distributed network that is to
say every node in the network has got access of every block of information
resulting in bringing in transparency now since it is public and everyone has
got the hold of entire network hence it becomes nearly impossible to tamper with
the data logged in a block and if anyone tries to make some false changes into
the already existing blocks all the nodes would get notified of the same and
the attempt of tampering would fall futile. So it verifies the attempt of
changes in no time this seems quite interesting right but how does it happen?
So we’ll see in the coming slides to come. Now imitability and security let’s
discuss these. Now blockchain is a technology that supports immutability
what does that mean. So it means once a code has been locked into a blockchain
and pass through the server it cannot be changed and similarly since the codes
cannot be tampered with results are also the same and cannot be tricked and hence
it brings you a sense of security exactly! for example if some
organizations has made a promise to you and if it is logged into a blockchain
then your organization could never step back and has to live up to its promises.
I know this must be sounding just like a must-have feature to you and today’s
dual phase environments isn’t it? So we saw one of the main reasons as to why
transactions done through blockchain is secured. Now let us go a little deeper
into it to understand it better but before doing so let us know what all a
blockchain consists of so a block has got number one a hash
I’m going to describe it in a while and then the data and finally the hash of the
previous block. Now hash is nothing but a fingerprint of a block and any changes
in the block would lead to changing the hash of the block and hence making hash
of all the following blocks invalid since each block consists hash of the
previous block so hash does play a crucial role in the
security but again in today’s technologically driven world creating a
hash is not a big deal and hence just having a hash cannot stop
a miscreant to tamper with your data and that is why we have got another crucial
concept in blockchain and that is called proof of work so this makes blockchain
data almost impossible to alter so this is nothing but the first consensus
algorithm. Proof-of-work increases the time required to create a new hash and
hence making the technology secured one so before anyone can change the hash of
entire network nodes are notified of the tampering attempt and hence tampering
becomes a tough task to perform almost impossible. So now I hope that you guys
must have got a fair idea about how this technology is so secure right? Now let’s
move forward and see its applications Bitcoin this is the famous application
of blockchain. So blockchain was originally conceptualized by Satoshi
Nakamoto when he published a white paper Bitcoin, a peer-to-peer electronic cash
system so the first bitcoins were mined in 2009
and thus was born the exciting technology of blockchain. So this is a
cryptocurrency that means digital cash and digital currency which runs on
blockchain method and has got limited supply. Now let’s check out how to be
actually implement blockchain in real life applications. Ethereum, it is again
a blockchain which is designed specifically for smart contract. So it is
a sort of cryptocurrency and allow us to transfer values in form of either and
also allows you to create smart contracts or code to be deployed to
blockchain. So what is smart contract smart contract is nothing but a digital
contract that cannot be amended yes you can also get detailed
information about smart contract and etherium in our previous videos. Link of
which have been mentioned in the description below and finally we have
got Solidity. so Solidity is a contract oriented high-level language so the
syntax of solidity is similar to JavaScript so basically you write your
smart contract using solidity language and then execute it on ethereum virtual
machine and do your blockchain transactions. Now I guess that you must
have got a fair idea of what is blockchain and advantages of using this.
Now let me take an example of a real-life scenario to differentiate
between a normal transaction and a transaction through blockchain. So let’s
suppose if you want to take some loan from a bank what would you do then? So
you definitely would go to a bank executive and ask for the EMIs the loan
would incur you every month, interest rate, principal amount deduction etc and
after going through all the formalities you have been sanctioned your loan
amount right? But what if after a few months Bank increases the interest rate
what would you do then? So you have to anyhow fall in line with whatever they
Bank dictates right? But if you had got this logged into a blockchain the bank
had to work according to the code specified into the blockchain for the
entire tenure which would mean no changes in the contract that you made
with the bank while taking the loan relaxing right? Now let us see how
technical it works so if you want to make a new transaction through an
already existing blockchain that is to say you want to add a new block of data
to the chain so that block would actually get distributed to each of the
nodes in the respective network and then now every node would validate the
authenticity of the block needed to be added to the chain and once it is
validated from all the nodes then only the block would get added to the changes
like this so if any nodes finds any problem with the block the block would
get rejected so it basically works on consensus so after knowing its technical
aspect now let’s take a use case of such a working mechanism now exactly so it
stands for decentralized autonomous organization which is a decentralized
and democratic organization so it actually eliminates manual intervention
to the lowest level and all the manager is thus is replaced by a set of terms
and conditions or values that are agreed by all the parties in for an electrons
action and then every term and condition are decided through voting and defined
the documentation is then logged into a court which would be passed through the
server to perform all the future transactions so let’s see if any
e-commerce company gets do implemented in the organization they can have the
following advantages number one all the processes would be codified and hence no
scope of making any manual error chances of having any discrepancies won’t be
there since it works on a collaborative consensus right and then all CMOS things
would be eliminated no need to have a specified hierarchy of position or
authority actions like stock maintaining delivery of the project etc are taken on
automatic triggers and hence making the process faster and more efficient with
lower cost so blockchains future certainly looks quite bright isn’t it
now let’s see how bright can it make your future so let me tell you guys that
blockchain expertise actually captured the number one position on the latest
escapes index by up work for being the hottest in the u.s. job market so this
is just one of the many indicators of how high the demand is for people with
blockchain skills and hence employment is never an issue for a blockchain
professional and a blockchain expert can garner around 86 thousand per year
sounds quite promising right so now let’s do a quick recap on what have I
learnt in today’s session so we started off by understanding what exactly is
blockchain then so it’s different features what makes it so secure it’s
applications and implementation we also went through the working mechanism of
blockchain and also saw how it can be implemented in real life situations and
ultimately talk about the career opportunities it has got for you so if
you feel excited about the course after watching this video so learn blockchain
course and detail and you can do so with one of the best eLearning
platforms that isn’t Al bad exactly so you can get a 360-degree knowledge about
the course designed by the best of the industry experts and with this we come
to the end of our video thank you so much for watching the video and giving
us your precious time for any inquiry feel free to contact us anytime I hope
the video was informative for you please like the video and if you have any
doubts comment below which I respond to it at the earliest don’t forget to
subscribe to our channel for more such informative videos you look out for
other related videos in our playlist for more detailed information visit our
website now have a great day and career ahead

23 thoughts on “What is Blockchain? Blockchain Technology Explained | Blockchain Tutorials for Beginners”

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