What are blockchain and bitcoin blockchain?

Blockchain is an emerging technology that gained popularity through cryptocurrency, especially Bitcoin.

Blockchain is not limited to cryptocurrency and can be a game-changer in other industries, such as education, healthcare, etc.
Many people are skeptical about “what is bitcoin ?” and “how blockchain technology works ?”.
So, Satoshi Nakamoto founded Bitcoin during the global financial crisis of 2008 and released a Bitcoin Whitepaper. The primary purpose of bitcoin was decentralization. The financial transaction in many countries are centralized (managed and controlled by financial institutions, such as banks, NBFC, etc.) Bitcoin is a digital currency and allows peer-to-peer transactions. The transaction fee will be minimal because it is a direct transaction. The transactions are verified by other nodes present in a blockchain network. If the transaction is accepted, then it would be broadcasted to other network nodes. The UTXO(Unspecified Transaction output) is, in simple terms, can be called a collection of coins. There are some UTXO inputs and outputs that assist the transaction occur.

What is blockchain?
Blockchain means a chain of blocks. It consists of an immutable(can not be changed) distributed ledger(all the network’s participants are called nodes). The blocks contain the data and are connected in such a way that it creates a blockchain.
The blockchain can be distinct. It can be a private blockchain(anyone can access it) or a public blockchain(restricted access). The bitcoin blockchain is one of the public blockchains.

How does the bitcoin blockchain work?
Let’s understand blockchain with a bitcoin transaction example.
Suppose there is a chain of blocks, and all blocks contain transactions.
Now, let’s understand “how is a block formed in a blockchain?” with the help of the following transaction.
A person “X” wants to send money to “Y.” Then, he will request this transaction to happen in a bitcoin network with bitcoin protocols. After this, a request for block formation, having the transaction details, will occur. The miners will verify the details of a block s(computers, server rack, and laptop nodes in a network). The miners will perform some random computations and verify the transaction. This process is known as “proof of work”. The transaction would be verified by measuring all the parameters, such as timestamp, amount, wallet balance, etc. The miners will verify it on a consensus basis, then the block will be added and broadcast to the existing nodes. this will bring transparency as the transaction will be broadcasted to every node and it would be hard to modify the transaction.
In reality, the block is connected by a hash (a computational value). The block may also contain more than one transaction. Hence, several transactions can form a block.

Decentralization is the essence of a blockchain. It later gives rise to many cryptocurrencies, including Ethereum, ZeroCash, and Cryptonotes. Ethereum is a cryptocurrency that has a smart contract as a crucial feature. The decentralized network will give rise to many start-ups in different sectors. Therefore, blockchain technology will bring a more transparent, accountable, and democratic society.

Blockchain is a future for India and the world.