What is a blockchain in bitcoin and what are its features?

Blockchain is a ledger system that manages data such as transaction information.

The definition of blockchain is divided even among experts, so here we also introduce the definition of blockchain by the Japan Blockchain Association (JBA), which aims to promote blockchain technology.

Blockchain in Bitcoin (public chain)

There are roughly two types of block chains: public chains and private chains. The former blockchain is operated by an unspecified number of network participants, and the latter blockchain has the characteristic that the operator can specify it. Below, we will explain the public blockchain used in Bitcoin.

Bit coin’s block chain is a distributed ledger technology in which independent nodes approve transactions, rather than powers such as governments managing all transactions. A large number of nodes share the same data on the network evenly, and even if a specific node is hacked or the node stops, the entire chain is not affected. In addition, it is said that it is difficult to tamper with the data because it is difficult to tamper with the data, because the data collation and approval work called mining is performed in the transaction information recording.

Blockchain features

Autonomous decentralized system

The blockchain has a mechanism as an “autonomous decentralized system” that serves the purpose of operating the entire system while allowing an unspecified number of nodes to act on their own judgment. As a result of all nodes autonomously acting, the opinions of all participants are converted into one, and even if some nodes are malfunctioning or misbehaving, it is possible to aim for overall optimization.

No central administrator

There is no administrator node in the blockchain network. In an autonomous distributed system, all participants in the network do the same job, using the same data, equally. In this way, the blockchain realizes an important system in financial transactions in which the whole is not broken even if a part is broken by making the function redundant. Contact with www.bitcoin-supreme.com for more detail.

You can freely open an account that is not linked to personal information

Since the blockchain does not have a mechanism to record the movement of money, virtual currency such as Bitcoin has a mechanism called wallet address corresponding to the key of public key cryptography. Since the wallet address is based on public key cryptography, as long as you can create a private key and public key pair, you can create as many as you want without any registration. Another feature is that you do not have to link your personal information at all to create a wallet address.

Everyone can view and verify all transactions

The blockchain does not record the current balance of wallet addresses, but records all past transaction history (transactions). By summing up all of this history, the current balance can be ascertained. Since transactions can be viewed and verified by anyone on the Internet, we have created a mechanism to continue recording transactions even if they are not reliable due to strict management and operation.

Advantages and disadvantages of blockchain

Blockchain theoretically keeps the system running without being broken, and has the characteristic that once written data is almost unalterable. Traditional services used to be trusted by the service provider. However, with blockchain, if the data at the time of recording is correct, it can now be guaranteed that the data has not been tampered with. As a result, it became possible to trade between un trusted persons without worrying about fraud.

On the other hand, on the other hand, blockchain cannot tamper/edit data once recorded. A blockchain in which unspecified number of nodes uses the same data and keep correct information by working, is not suitable for managing data that needs to be rewritten later. Also, you cannot use it by giving specific authority so that only those who have that authority can view it. For such a system, it is necessary to use an external system.

Problems with blockchain

System/development vulnerabilities

Since the information once written in the blockchain cannot be rewritten in the blockchain, there is a risk of hacking such as the DAO case that exploits this characteristic, and the management and operation of private keys are all self-responsibility issues in system operation.

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