What is Blockchain in simple terms?
Blockchain is the latest technology, the interest in which has grown along with the popularity of cryptocurrencies. Today it is widely discussed not only in the world of finance. They are already trying to use blockchain for storing and processing personal data and identification, in marketing and computer games. But what is blockchain?
Blockchain in simple words
Blockchain is a continuous chain of blocks. It contains all the transaction records. Unlike conventional databases, you cannot change or delete these records, you can only add new ones.
Blockchain is also called the technology of distributed ledgers, because the entire chain of transactions and the current list of owners are stored on their computers by many independent users. Even if one or more computers fail, the information will not be lost.
The concept of blockchain technology was proposed by Satoshi Nakamoto in 2008, and was first applied in practice when bitcoin appeared in 2009. Due to its origin, it is classified as a cryptocurrency transaction, but the scope of the technology is much wider.
The prospects for the development of blockchain technologies are associated with the active development of cloud services, including online banking, Internet directories, and identification systems for entering corporate sites.
How blockchain technology works
The system works as follows:
- The primary block is created, it does not contain a record about the previous block.
- Each subsequent block contains information about the “parent”, the type of transaction, its own header used to generate the next block.
- System users see the entire number of blocks, but have access only to their own.
Despite the distribution of blocks on the Internet, in fact, in a “public place”, encryption of access to each of them allows you to keep the data stored in them safe.
The blockchain itself can be freely shared with any Internet user without the risk of losing content. Cryptocurrencies with material value in national currency are based on this.
The transfer of access to the blocks occurs automatically according to the principle of digital signature — you enter the code, confirm the transfer of rights, and the process is completed. In addition to the financial sphere, such a system may be in demand when selling intellectual products like books, programs.
Blockchain implementation
The preferential transition of private / public companies to Internet technologies makes it possible to integrate blockchains into the existing infrastructure without visible transformations.
Implementation is possible by changing the internal algorithms for storing data, providing access to them by users. If you leave the previous interface, the owners of personal accounts will not even notice the difference, feeling only the noticeably increased speed of the resource.
Totem blockchain features
Totem has a unique multi-chain architecture, which consists of:
◾️ Standard Chain — guarantees security, consensus, and cross-chain operability.
◾️ Business Chain — meets specific financial business demands of various kinds. Such chains optimize functions for specific application scenarios.
◾️ EthBridge — allows Totem to be sliced to connect and communicate with external networks such as Ethereum and Bitcoin.
✔️ Totem Chain’s consensus mechanism realizes decoupled consensus and also increases reliability and consensus consistency across the entire network by separating the process of generating blocks on the chain from confirming the end state.
✔️ Totem Open Protocols. The decentralized and peer-to-peer open financial system is user-friendly, secure, and open, as opposed to traditional financial service providers. Even low-income communities that have traditionally been excluded from the financial system can participate in and benefit from it.
✅ Totem Chain also offers a variety of readily available modules for consensus, P2P network governance (voting system), staking, authentication, etc.
Learn more about Totem features and advantages here: http://totprotocol.com
