Blockchain

Blockchain:

Blockchain is created from two words block and chain.

This technology is actually a chain of blocks.

In general, blockchain is a type of information recording and reporting system.

Its difference from other systems is that the information stored on this type of system is shared among all network members, and using encryption, it is almost impossible to delete and manipulate the recorded information.

Blockchain is a type of database or data center that is not located on one or more specific servers, but on all computers connected to the network.

Blockchain is a ledger for recording records and reports, and due to some kind of encryption and recording them in all network computers, the recorded reports cannot be hacked or deleted.

How do blockchain technology work?

The concept of blockchain technology is a combination of three basic technologies.

None of these three technologies are new, but their coordination with each other constitutes a new technology.

The three main factors in blockchain technology are:
Private key encryption
A network and distributed ledger
Rules and an incentive (usually financial) to convince users to participate in network record keeping to confirm transactions.

Financial institutions have invested in or contributed to countless industries over the past 30 years.

Therefore, to prevent this process from changing, banks have started R&D labs, created research centers and partnered with blockchain developers to fully understand the huge potential of these technologies.

Financial institutions were the first companies to enter this stream, but scientific universities, volt and consulting firms have also studied this technology.

Scalability problems in blockchains caused solutions such as sharding and lightning to be offered to improve it.

Sharding is one of the ways to improve scalability that blockchains like Ethereum plan to use in the future.