Road to Success

NB: Blockchain, Strictly for Lazy Beginners.

After reading this easy-to-understand article, you will acquire knowledge on:

Introduction

Are you aware that the almighty blockchain technology rests on the shoulders of other great technologies? Did you know that without these technologies, blockchain would not be in existence today?

Blockchain experts (a healthy dose of pun intended) claim it would be easier to understand how blockchain technology operates by looking past its beginnings and focusing on the technologies that created it.

Tighten your seat belt; it is about to be a hell of a fun ride in the techy world that existed before the era of blockchain technology.

The History of Blockchain: Where it all Began!

The first real-world use case blockchain was the bitcoin blockchain. It was created in 2008 by a group of women or men under the pseudonym Satoshi Nakamoto.

The bitcoin blockchain combined various computer techniques and technologies for its operations.

Fun Fact: Some group of people claim Satoshi Nakamoto may actually be an alien. what says you?

Before studying these techniques and technologies, it would be best to briefly answer this question:

What is blockchain technology?

Blockchain is a type of distributed ledger technology that uses data structures known as blocks to store data in an organized manner.

These blocks are chained together because they each contain information from the previous block hence the name blockchain.

Satoshi Nakamoto created blockchain technology by combining various technologies and techniques in the computer field.

It would be best to understand blockchain technology by studying the technologies behind it. In this article, we will look at the technologies and techniques surrounding blockchain and how they operate.

The technologies and techniques that make blockchain possible are:

1. Cryptography: This technology allows blockchains to store data securely, create chains between blocks, validate blocks, and create public and private keys that generate wallet addresses.
2. Consensus Mechanism: This technology allows nodes to agree on the validity of data stored on blocks. This technology also allows easy power distribution amongst computers on the blockchain network.
3. Digital ledgers and documents: without digital ledger technology, they won’t be anything like a blockchain in today’s world.
4. Peer to Peer Networks (P2P): this gave rise to the possibility that allows computers to interact directly with themselves without the need for a central server (i.e., individual computers on the network operate as both clients and servers).
5. Merkle Trees: this technology allows for the easy organization of data stored in blocks on the blockchain.

Fun Question: Does a Merkle tree look like an actual tree?

Fun answer: A Merkle tree doesn’t look like an actual tree, but it has features similar to actual trees, like the Leaves, Merkle roots and branches.

All these technologies joined hands to produce the almighty blockchain technology.

Let’s briefly look at these technologies, their meaning, how they operate on the blockchain, and the great names behind them.

Our first stop is at distributed ledger technology: Digital Ledgers!

Digital Ledgers

What are Digital ledgers?

Digital ledgers are online documents that store data and information. It is a data-record system that uses digital technology to track and record data.

Distributed Digital ledgers are ledgers stored across multiple computers on a network. This means that the ledger is not stored in one central location but on multiple locations.

Distributed digital ledgers use cryptography and data structures (Merkle trees) to keep data safe and organized.

Data stored online or on computer devices are typical examples of digital ledgers/documents. These ledgers store data of all formats ranging from texts to images and videos.

How are Digital ledgers linked to Blockchain technology?

Blockchain store data in Digital ledgers called blocks. These blocks are linked together by containing previous block data. Every block contains data recorded in it.

Cryptography converts all data recorded on a block into a hash code. This hash code allows a newly created block to be linked to the previous block, resulting in the creation of the blockchain.

Fun Question: What is a hash code?

Fun answer: A hash code is like a magical secret code that hides normal messages. Normal messages are turned into these secret codes. Only people with the magic wand can cast a spell and read the hidden message.

This linkage of blocks of data creates tamper-proof records of data.

Without the invention of digital documents, they won’t be blockchain technology.

After looking at digital ledger technology:

Take a short break here. Rested? Let’s fire🔥 on.

Our next stop is Cryptography Technology: Hash Functions and Asymmetric Key algorithm!

Cryptography Technology

What is Cryptography?

Cryptography is a Greek word that means secret language.

Cryptography is a process that secures messages from an unwanted third party (i.e., only the intended recipient can understand the message).

For example, if Peter wants to pass a letter to Paul and doesn’t want the people at the post office to take a peek at its content.

Cryptography makes this possible by changing the letter’s content into nonsense text that when anyone apart from Paul looks at it, they won’t be able to read or make sense of the content.

But when the letter arrives in Paul’s hands, Paul will know how to change the nonsense text to the actual content (plain text).

The scenario above shows that cryptography covers data privacy, data confidentiality, and data security.

Blockchain uses cryptographic techniques to secure all data recorded on the blockchain.

How is Cryptography linked to Blockchain Technology?

Blockchain technology uses many cryptographic techniques to secure data stored on it. The table below explains the applications of 3 significant types of cryptography techniques to blockchain technology.

Cryptography makes sure the data stored on the blockchain are secured.

Pheww, what an exhilarating ride this was.

We are at the end of this article, and it continues here where we will discuss the three other techniques Blockchain relies upon.

But before you cross over to the next article, let us take a recap of all we have learned:

Conclusion

Blockchain technology uses digital ledgers called blocks to store data. These data are secured through Cryptography.

Cryptography converts normal data into special codes. These special codes can only be decoded by persons the message or information was intended for.

Without Digital ledgers or Cryptography, Blockchain would not store data securely in an immutable fashion.

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