What is Blockchain? | How does it work?

What is Blockchain? | How does it work?

(This article has been translated with google translate.)

Blockchain & Web3.0

Technology is developing rapidly and new technologies are emerging for very different needs. In particular, unlimited data entry and the rapid rise of artificial intelligence bring many solutions. Blockchain and web 3.0 are among the most curious technologies recently.

Blockchain; It can be defined as an unbreakable, transparent, distributed digital chain of records. It stands out as the most valuable chain architecture in the internet environment. In this chain system, each block identifies the previous block as a reference, thanks to the Hash function. In this way, an uninterrupted chain system emerges. In this way, the term blockchain, also known as blockchain, emerges. On this system, there is a web base process where new records can be added all the time. With this system, you can have the opportunity to create crypto money, financial records or contracts.

Web 3.0 can be described as an artificial intelligence-based web. In this technology, content control is out of human control and completely under artificial intelligence control. In this system, the software produces the contents specifically for the user and a semantic web experience emerges. Although web 3.0 is not fully used at the moment, we are at the end of the web 2.0 system and in the process of transitioning to the web 3.0 system.

What is Blockchain?

Blockchain is a system of recording information in a way that makes it difficult or impossible to modify, hack or deceive the system.

It is a digital ledger of transactions that are replicated and distributed over a blockchain to the entire network of computer systems on the blockchain. Each block on the chain contains a series of transactions, and each time a new transaction occurs on the blockchain, a record of that transaction is added to each participant's ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology.

Blockchain is a type of distributed ledger technology where transactions are recorded with an immutable cryptographic signature called a hash. If a block in a chain is changed, it can be understood immediately. If hackers wanted to disrupt a blockchain system, they would have to replace every block in the chain in all distributed versions of the chain. Blockchains like Bitcoin and Ethereum are constantly growing as blocks are added to the chain, making the ledger more reliable.

How Blockchain Works

Each transaction is recorded as a data block when it occurs. These transactions indicate the movement of an asset, which can be tangible (a product) or intangible (intellectual). The data block can save the information you choose. It is possible to track many details such as who, what, when, where, how much and even the instant status of a food shipment.

Each block connects to the ones before and after it. These blocks form a data chain as an asset moves from one place to another or ownership changes hands. The blocks confirm the exact time and order of transactions. In addition, the blocks are securely interconnected to prevent any blocks from being replaced or placing a block between two existing blocks.

Transactions are blocked together in an irreversible chain. Each additional block strengthens the verification of the previous block and therefore the entire blockchain. This makes the blockchain distinctly reliable against hacking. In this way, it eliminates the possibility of entering the system by a malicious person. It also creates a ledger of transactions that you and other network members can trust.

What Are the Advantages of Blockchain?

Blockchain system is a technology used by many businesses and commercial structures in recent years. Thanks to its many advantages and functionality, it is preferred more and more every day.

Blockchain advantages can be listed as follows;

  • More Confidence

As a member of a members-only network with Blockchain, you can receive accurate and timely data. Also, your confidential blockchain records are only shared with network members you have specifically granted access to. This gives more confidence in the system.

  • More Security

Consensus on data accuracy from all network members is required. Since all verified transactions are permanently recorded, they cannot be changed again. No one, not even a system administrator, can delete a process. Therefore, security measures are at the highest level.

  • More Efficiency

Time-consuming record reconciliations are eliminated with a distributed ledger shared among members of a network. To speed up transactions, a set of rules called smart contracts can be stored on the blockchain and executed automatically. In this way, working efficiency and unnecessary workload are eliminated.

What is Web 3.0 (Web3)?

Web 3.0 (Web3) is the third generation of web technologies evolution. The web, also known as the World Wide Web, is the basic layer that provides website and application services and reveals how the internet is used.

Web 3.0 is still evolving and being defined. Therefore, there is no universally accepted definition. However, it is a known fact that Web 3.0 will put a strong emphasis on decentralized applications and extensive use of blockchain-based technologies. Web 3.0 will also leverage artificial intelligence to help power smarter and more adaptive applications.

How Web 3.0 Works

With Web 1.0 and Web 2.0 technologies, the HTML language defines the layout of web pages. HTML will continue to be a core layer with Web 3.0. However, how it connects to data sources and where those data sources are located may differ slightly from previous generations of the web.

Many websites and nearly all applications in the Web 2.0 era use some kind of central database to present data and help enable functionality. With Web 3.0, instead of a central database, applications and services benefit from a decentralized blockchain. The basic idea with blockchain is there is a distributed consensus system rather than an arbitrary central authority.

An emerging management ideal within the Blockchain and Web 3.0 community is the concept of a decentralized autonomous organization. Instead of having a central authority that manages a platform's operations, with a decentralized autonomous structure, Web 3.0 technologies and communities achieve tried-and-true self-management with a decentralized approach.

What are the Web 3.0 Advantages?

Has Distributed Management: Unlike the first two generations of the web, where administration and applications were highly centralized, Web 3.0 will be decentralized. Applications and services will be used in a distributed approach with no central authority.

  • Based on Blockchain: Blockchain is the system that enables the creation of decentralized applications and services. Data and connectivity between blockchain and services are distributed in a different approach than central database infrastructure. Blockchain can also provide an immutable ledger of transactions and events. It can also help ensure verifiable authenticity in a decentralized world.
  • Uses Cryptocurrency: The use of cryptocurrency is an important feature of Web 3.0 services.
  • AI-Powered: More automation overall is a key feature of Web 3.0, and this automation is heavily AI-powered.

Blockchain and Web 3.0 concepts are intertwined. Those who want a more independent management system instead of using a limited service in a central management prefer web 3.0 technology. This system also eliminates all the negativities by using the blockchain system in terms of security.

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