In the previous part we discuss about the concept such as the what is blockchain,asset,transaction and the DLT.In thi
THE BLOCK CHAIN PART 2
In the previous part we discuss about the concept such as the what is blockchain,asset,transaction and the DLT.In this part we mainly study about the whome created the bitcoin and for why is to be created.
bitcoin is mainly created by the satoshi nakamota no one knows that is a men or women or the group of the people blockchain hide the total identity of it.It is assume that he is to be Japanese, born on April 5, 1975 and reside in Japan but people doubt
this due to his native-level command of the English language as well as his preference of working hours more consistent with the U.K.time zone than Asia. Satoshi is a Japanese boy’s name that means “one with wise ancestry” and he is presumed to be male.
In this we discuss about the bitcoin to understand the core functionality of the blockchain easily.so why we need to create this type of the bitcoin or the blockchain is the database with the history. It mean that contain all the history and also the time when this history get created.Whithin the blockchain if a particular transaction happen it cannot be changed that mean it is mutable. The main reason why this type of the technology is introduced because of the concept called as the double spending.This is the main issue in the today's digital world.What is this double spending.
if their are two friend's one is ramesh and another is aman. Ramesh has to pay 10Rs to aman and with return on it aman give one apple to ramesh.
but what happen if this transaction happen digitally if ramesh pay 10Rs to aman it also has one binary copy of his 10Rs in it system and ramesh can used this binary copy of 10Rs once again on the different position also like this way it will done a fraud with the same 10Rs but two different people at same time.To overcome this we introduce one third party that demonstrate this transaction or employ a centralized authority to monitor all the transactions. this centralized authority manily handle or store the ledger book recording all transactions.Now, ramesh has to send his digital money to this bank which debited the ramesh account. After this ensuring that ramesh has a sufficient amount to pay aman in his account then he would send money to the aman creding his account in the ledger.Now it is guaranted that ramesh cannot double spend the money. If every transaction is routed like this centralized authority then the double spending problem vanishes.
but this centalized authority mainly causes the different issue such as the cost of creatind and maintainning the centralized authority itself.As bank need money for it's operation so it cut's the commission on each transaction they do for their client's and this sometimes become very expensive.especially in the overseas transfer of the money.all above issue solved by the digital currency called as a bitcoin.
what bitcoin done it here.Bank has the ledger to maintain of all it's user to overcome the load of the third party satoshi proposed this ledger public and this ledger maintain by the community. if this ledger become public then this leder to be a tamper-proof so nobody cannot modify it's entries.we also have to maintain the anonymity of the user also