If this technology is so complex, why they call it “Blockchain”?
At its most basic level, Blockchain is just a blockchain, but not in the traditional sense of those words. When we say the words “block” and “chain” in this context, we are talking about digital information, the “block,” stored in a public database, the “chain.”
The “Blocks” in Blockchain are composed of digital pieces of information. Specifically, they have three parts:
- The blocks store transaction information such as the date, time, and amount of dollars of your most recent purchase.
- Blocks store information about who is participating in the transactions. A block for your big expenses could register your name along with the company who you bought from. Instead of using your real name, your purchase is registered without any identifying information, using just a unique “digital signature,” something like a username.
- Information storage blocks that distinguishes them from the other blocks. As you and I having names to distinguish one from the other, each one stores a unique code block called “control” that allows us to distinguish them from any other block. Say you spent too much money, but while it is in transit, they decide they can not resist and need a second. Although the details of this new transaction would be almost identical to your previous purchase, we can still tell them the separate blocks apart due their unique codes.
While the block in the above example is used to store a single purchase, the reality is a little different. A single block in the Blockchain can store up to 1 MB of data, depending on the size of the transaction, which means a single block can accommodate a few thousand transactions under one roof.