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Block chain technology is the bottom technology of Bitcoin. Bitcoin is the first application of block chain.
So what is a block chain?
Bitcoin trading information is recorded in a de-centralized book, which is the block chain. Its main function is to store information. Any information that needs to be saved can be written into block chains or read from them.
What is Decentralization?
That is, there is no centralized hardware or management organization. Every node is equal and keeps the whole database. You can write or read data to any node, because all nodes will eventually synchronize to ensure that the block chains are consistent. Nodes can be servers, laptops, mobile phones, etc.
In addition, let's talk about block chains.
If the block chain is a big book, then each block is equivalent to every page of it, each recording a few minutes of trading records on the Bitcoin network. Each block is linked in chronological order to form a chain structure, that is, the block chain.
So it's very important who keeps accounts. In the block chain system, everyone has the opportunity to participate in the accounting. The system will judge the fastest and best person to keep accounts during this period, write the contents of their records on the books, and send the contents of the books to all other people in the system for backup during this period, so that everyone in the system has a complete book of accounts.
Block chain guarantees that existing data can not be tampered with or forged by cryptography. There are two key points in this part: hash value and asymmetric encryption.
What is a hash value?
Hash function is a method of creating small digital "fingerprints" from any kind of data. Hash functions compress messages or data into abstracts, which reduce the amount of data and fix the format of data. This function mixes and scrambles the data and recreates a fingerprint called a hash value. Hash values are usually represented by a short random string of letters and numbers.
What is asymmetric encryption?
Symmetric encryption algorithm uses the same secret key when encrypting and decrypting, while asymmetric encryption algorithm needs two keys to encrypt and decrypt, which are public key and private key.
In short, block chains are the way everyone participates in bookkeeping.