Home Education What is the technology behind the blockchain? Beginners step by step guide...

What is the technology behind the blockchain? Beginners step by step guide 2019

When the blockchain came to the masses it just broke the internet. Blockchain has so many parts and so much use cases and in this guide we are going to bring the good and the bad parts all together.

Is blockchain going to change the internet?

Satoshi Nakomoto is the one who people remember when they hear about anything bitcoin related but bitcoin is yet another use case of the blockchain itself. Nakomoto was the genius behind all this technology and that idea was created out of this guy’s mind.

It did not stopped there and that technology had just advanced to a more big thing and the single bit of data every one wants to know is that what really is behind the blockchain?

Blockchain works in a simple way and it does not duplicate data but it moves that between people. This kind of technology is meant to be the basis of a new internet revolution.

At first this technology was used for bitcoin (The well-known cryptocurrency) but later and when time passed the other genius people started to think bigger and have invented new places where it can be applied.

I am here today to talk about this well-known and well used piece of invention and how this technology differs from many other forms of similar technologies. I am convinced that you will take many things out of this guide. So let’s get started!

Explanation of The Blockchain

Explanation of The Blockchain

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)

A blockchain is just a chain of data that are each chain is tagged by a mark of time. These data are immutable and that is the nature of using a chain of data blocks.

These sequence of Data is managed by a group of compute units and nobody possesses the system and it means that it is for everyone. The formulas that creates this kind of connectivity between the chains is using cryptographic rules and basics.

So what is the reason that we call it the revolutionary technology? The reason is that this technology and the group of computers behind them have no centralized control and ownership. This is the basis of a people-have-the-control system.

And because it is a system that everybody can own it then everybody can also see all the events that are happening in the system and because it is all immutable then no one can change the blocks and the chains so that leads to the system being resistable to central control.

How do blockchain parts come together?

To explain that simply to you just picture an excel file that is spread and copied around so many PCs around the network of computers. Then just see that in your mind what could happen when someone wants to change a small part of that document! What could happen?

Then that person needs to contact and get access to everyone’s computer and make the changes that he wanna make in there. Imagine how much work would it be!? This is a problem that blockchain is going to solve.

The data that are stored in a blockchain are shared among the people who are using the blockchain and this sharing causes that when that person wants to change something he just needs to change them on his part and get others agreement on this change.

As soon as enough people agree on that change then the change gets reflected on the blockchain itself and as a result all the copies of the document will get updated instantly and without much effort.

Blockchain is based on two basics

There are 2 main basics that the blockchain technology is based on. These three are as follows:

  • Anti-Centralization
  • Omni Visibility

Number one: Anti-Centralization

Just before these Decentralized services such as bitcoin and BitTorrent came along we were using services that shared one single entity and that entity controlled all the rules and regulations of the system. Those were centralized systems.

The concept of these centralized systems are simple and that is you have a single party that keeps track of all your data and if you want any usage of your data you have to speak with this single party and in this road you may have to please them or obey everything that they tell you so that you can get the thing that you want from them.

Another great sample of centralized system and establishments are the banks. They keep all of the cash that you gave them and whenever you wanted to send somebody some of your net worth then you have to include the bank in the process which acts just as a bottleneck.

Traditional client server computing model

This just acts as a client and server model which is by far the most used engineering model of the internet network. This system works like this: “When you want to use a search engine like bing you have to go to the bing’s website then you have to enter whatever search query that you may have into the search bar.

By doing this you are giving them the question you are asking and in return they will give you the answer to your question.” This is what happens every time you use that search engine, but what is the point of all of this?

First you can guess what the real problem is and that is the centralization nature of the system. If the central server get compromised then you have put all your data at danger.

Second if for example the bank has gone through some system update (which happens quite long time at a time) then you have to wait for the whole system to come up again so that it can be used again by its users. I am sure you have experienced that before.

And many many other reasons that just are showing up themselves every day in the centralized world. Decentralization is the answer to that.

Number two: Omni Visibility

Visibility is the missing point when it comes to centralized systems. For example the search engines are using all your information and we all know that but the thing is, how it is all used?

Because of the hidden nature of centralized systems we all dont know what happens behind them but in the blockchain systems we have something called the public ledger this public ledger will not hide anything from every body and we get to what’s called the Transparency or what I call Omni-Visibility.


I hope that you guys found this guide useful. I tried to keep it as simple as possible. If you have any question regardless of blockchain or cryptocurrency then don’t hesitate to ask in the comments.


Please enter your comment!
Please enter your name here

Must Read

Staking: these are the 5 preferred cryptos for passive profits

Staking has been called in various ways, some accurate, others not so much. This has also happened with PoS,...

United Kingdom forces to block cryptocurrency advertising

The advertisements of the company Luno will be withdrawn from the United Kingdom after the resolution that obliges them to do so...

Cryptocurrencies find some relief after their crash

Cryptocurrencies find some support for a bounce after one of the toughest weeks for investors. Although last Thursday we...

China Strikes Cryptocurrencies Again, Bitcoin Slumps Again

The highest level of government in China has proposed new measures to regulate mining in the country. The proposal has been received...

Bitcoin on the Playstation? Sony’s patent finally accepted

On May 17, 2021, the publication of a patent by Sony Interactive Entertainment mentioning Bitcoin was greeted with great fanfare by the...