Bitcoin network is the first successful implementation of the blockchain technology. Proposed and engineered by Satoshi Nakamoti, it effectively utilizes the private-public key encryption and one way hasing algorithms to create a persistently secure open database.
Conceptually, blockchain is an open public ledger where, every bitcoin transaction is encrypted and recorded forever. The most remarkable thing about this invention is that it is truly and completely decentralized. It has no single point of failure and is completely immutable. Controlled by no central authority and hosted by no central server, this technology provides the most secure mechanism of anti-manipulation and anti-fraud that is currently available in computer software.
What the open ledger provides is a method, where data can be uniquely distributed within a network without it being copied or tampered with. Additionally, the hasing algorithms and the modern dual key cryptography used in public ledger makes this mechanism super secure and transparent at the same time.
Currently, on the Bitcoin network, private keys provide access to individual assets while public keys work as an address on the secure network of the public ledger. Once a transaction is verified by a node, it is added to a block and permanently recorded on the blockchain which is then distributed to every node on the network. This way a forged entry is easily detectable, since maintaining consensus among every node in the network is an essential principle of this technology.
With the introduction of Ethereum platform, application of the open ledger has been greatly enhanced to include smart contracts, automated finances and creating secure, decentralized applications that can be literally unstoppable. Blockchain is beyond doubt the most ingenious invention after the internet, which has the potential to remarkably change the way we use networks, databases and applications. The application of a transparent and an open public ledger has enormous potential in future decentralized automation.