It’s been quite sometimes I didn’t write an article and I would like to publish a basic article about blockchain, as of now-days people feel cool when we mentioned “blockchain” , “bitcoin”, “cryptocurrency”, “ICO”, “Smart contract” those are 5 keywords that fill in technology headlines in almost every major tech news. It’s always draw people attentions, before we going to far let’s draw a line to discuss about it. Blockchain itself are not new technology as we expose to these technology everyday to make sure our lives run pretty smoothly.
Why Bitcoin and blockchain ?
Frankly speaking the idea of bitcoin and blockchain created because there’s a person name “satoshi nakamoto” who’s dissapointed with current banking and credit scoring system that being build just to serve high and influential net worth individuals. So he created a system called bitcoin a ledgers that are distributed running in several different nodes (a computer or server) random and nobody knows the locations except the initial creators. Because of the randomness of nodes that confirms the transaction the system itself Byzantine fault-tolerant asset registry to store and transfer the chained proof-of-work solutions.
Nobody will be able to replicate the system even if they want to the effort were too massive and expensive, it’s not worth it to attack bitcoin network.
Nobody knows nakamoto whether it’s only 1 person or a group of people because the bitcoin created following macro and micro economy principle.
As a person who works and learned about financial system we currently depend on there’s so many flaws in our financial systems :
if there’s massive data breach the customers will be the victims (be it personal or a corporation’s),
Hackers stolen money it would be the victim lost (either a person or corporations),
Bank Default or bankruptcy would be the customers and workers lost
Worse case inflation because of the government didn’t control it and corrupt politician taking international loans for their own personal use cause the economy doesn’t move would be the people loss
Because of the reason above there’s lot of people that called themselves “cyberpunks” would like to liberate and creating a system that created by people for the people of course these people should be someone or a groups of people with credibility.
So how come someone without a face could be trusted ?
Because of the system itself guarantee the creator motives and if today bitcoin price went up high because there’s people who tried to test the system and they failed to get in and many blockchain applications develop on top of it.
The people who involves in bitcoin and blockchain were able to do test and trial but still being stay within framework and guidelines created by “satoshi nakamoto”.
Blockchain itself divided into 2 categories :
Public blockchain : where everyone’s allowed to participate by following certain conditions
Private blockchain : Only certain parties listed could participate
Rules of the games
Before we are going further let’s imagine blockchain as LEGO, we want to build a castle using LEGO blocks so we need to find the right block to create castle shape same rules apply to blockchain there’s rules need to be fit in before the chains could be created.
Let’s deep dive to Public blockchain first the rules of the chains were determined by the consensus (51% from the total of people that already in the chains itself) and for private from the majority shareholders.
For people who works outside tech and not tech savvy those words might sound too geek and not common, but the example of blockchain were present in our day to day lives.
For example like vlogger, instagram celebrity or anyone who use video platform to publish their everyday lives even blog use it to make sure their followers know about their update , what product they are using , this is the example of the easiest distributed ledgers that ever present in the social media. But these ledgers authenticity quite questionable whether these people really do it for the sake of being popular , getting free products and sponsored or just because they like it.
And blockchains able to check the authenticity of the persons based on their public record and social media feeds.