What is Blockchain anyway?

Bitcoin and blockchain are two terms that many people often hear in daily life. Although these two words are becoming very popular, there is vast information pollution about the concepts. What are blockchain and bitcoin? In this article, we simply will show what blockchain technology is and what it does.

The blockchain is a technology designed to store and manage data safely. The blockchain sustains a decentralised, transparent structure. It adopts an approach that does not require intermediary institutions. In short, blockchain performs encrypted operations in a decentralised structure rather than centralised ones, i.e. banks, governments.

Okay, but what does it mean? 

The blockchain is a peer-2-peer technology that aims to transfer all kinds of data (information, agreement, money) directly between two units in an instant way. 

Imagine a notebook, when one person sends 100 bucks to B, the process is noted. Let's say A borrows from person C within the same day, purchases a phone from person D, and so on. All transactions are noted in this book. Every page of this book is called "block". When we turn the page, we have a new empty page. A, B, C, D and all the people's operations are recorded on this new page. The second block is formed with this operation. Now imagine that thousands of millions of people have this notebook. Each transaction between individuals is updated at the same time in all the notebooks.  This update is done with encrypted passwords between the first page and the second page. You can think of it as glue in books that hold two pages together.

All these transactions are written in an endless book, and no one can claim that they have more or less money than they have. A person can not change the information in other books because the data encrypted and distributed in all blockchain. So as you can understand all information is backed up in thousands, millions of different places. Therefore, it is not possible to steal or change this information.

Who keeps the book?

These people are called miners. When passing from one page to another, miners use their computer's graphics and power to approve and back them up. In return, they receive prizes like bitcoin etc. 

In a nutshell, blockchain uses a different approach that is far from centralised systems of intermediate regulatory institutions such as states and banks. Moreover, it is just up the road.