Before we discuss further what isblockchain, we should first know what is. Basically, it is an online application that is used to manage and secure the ledger. Blockchain is a certain kind of public ledger. It is different from a traditional database in that it uses proof-of-work to verify the integrity of transactions. Unlike a traditional database, blockchains only store information in blocks which are then chained together. As new data is added it is automatically entered into another block
In contrast to a traditional database where you can only see the last 100 entries, with the Blockchain you can look at the entire history. This allows you to trace the relationships between blocks. The main purpose of the Blockchain is for the users to transact business during normal business hours without having to wait for business hours. You will not be able to do this with a traditional database because the timeliness required for database transactions cannot be obtained with the speed of light. You also cannot perform preventive or diagnostic scans on the Blockchain. These things are only available for users who are accessing the ledger through the Internet.
If we want to make the word Decentralized before we describe the Blockchain we need to define what a decentralized system is. A decentralized system is one where there is no single body, institution, or person that controls the infrastructure of the system. For instance, the infrastructure of the government or any central bank is not decentralized, rather it is centralized. If someone wanted to remove corrupt politicians from power, or just anyone who wanted to remove unneeded transactions from the ledger, they would have to do it by themselves using their own tools. This is not possible when it comes to the Blockchain because there is no one to banish corrupt traders from the system.
The Blockchain is similar to a Distributed Ledger system (DLP). The difference between the two is that while the DLP has a physical recording device, the Blockchain has no physical recording device. The ledger records all transactions that happen on the system in blocks. These blocks are stored in a remote location such as an off-site data center, or in a cloud storage service. No business hours and no customer service hours are needed to perform preventive or diagnostic scans on the ledger. If you want to check whether or not your transaction went through or not, you can do it at any time you like without having to wait for business hours.
One major appeal of the blockchain technology is its very cost-effectiveness. The cost of running and maintaining the ledger is much lower than the cost of maintaining a centralized database and transaction processing services. This means that you can have lower fees on your trades and transactions. It also means that your business can scale better since the cost of outsourcing certain functions to other countries is reduced. The cost of maintaining employees is also decreased as you are no longer required to hire expensive employees who will work around the clock just to maintain the ledger.
Another major appeal of the blockchain is the fact that it is entirely decentralized. Because transactions are handled via the ledger, it is completely free of third-party interference. Transactions are secured by the users’ computers. There are no more risks of a server crash or security compromise because the central server holding the ledger is always online and can always process transactions. Transactions are real time and the speed of transaction is very high, much higher than anything that has been possible with traditional transaction methods.
The last major appeal of the Blockchain is its extreme versatility. Because of the way that transactions are processed and secured, the ledger is infinitely scalable. Once the ledger starts to experience heavy traffic, it can be adapted to various uses. In the future, it may also be used for micro-blogging, for example. Thus, the decentralized nature of the Blockchain can be applied to almost any use and to any industry where it makes sense to make transactions are permanently recorded and controlled by the end users.
In summary, the next time someone asks you what the difference between the Internet and the Blockchain is, you can tell them that there aren’t any differences at all! The difference between the Internet and the Blockchain is that the latter is a decentralized ledger, which stores and tracks everything in the form of transactions on the basis of digital signatures. The Internet on the other hand is nothing more than a bunch of computer networks that allow people to communicate. In short, the Internet is the old-fashioned physical backbone of the Blockchain, which is a new and more convenient protocol and store system. Now that you know what the difference between the Internet and the Blockchain is, go ahead and start using the former, but stay away from the latter!