The Internet has become a part of every aspect of our lives. We're gradually moving towards a world where everything is done through the internet. We're in the second version of the internet where everything is connected and monetized by centralized entities. But soon, we enter into the next phase of the internet where blockchain will play a major role in the internet. Web3 aka semantic web, the term coined by Polkadot founder and Ethereum co-founder Gavin Wood, is the decentralized system of the internet built on blockchain technology.
Blockchain is a distributed ledger or database that allows decentralized information sharing within a network. Blockchain is made up of many blocks. Each block has a unique hash value and the blocks are connected in a chain form, we also can say it is a chain of blocks. The block contains information of any kind, especially transaction information. The information is transparent and immutable. It can be processed without any third-party intermediaries.
Why a decentralized network? The decentralized network provides much security, reliability, and privacy compared to the centralized network. These networks are easy to deal with no single point of failure.
Blockchain is the foundation for Web 3.0. The term becomes well-known after the creation of Bitcoin. You can't see Web 3.0 without blockchain technology. But Blockchain without Web 3.0.
Though blockchain is decentralized, there is not much possibility to hack the data. Hence, the websites and applications built in Web 3.0 will be safe against malicious attacks. Users don't have to worry about their data being removed. Without any doubt, Web3 and Blockchain together will make this world better.
Blockchain connects with several nodes that maintain a single and unchangeable ledger. To perform a transaction in Blockchain, the user will need a wallet. This Blockchain wallet is a program that enables spending cryptocurrencies. Blockchain uses cryptography to perform transactions. These wallets are secured by cryptographic methods(private and public keys). Hence, it enables wallet Users to manage and get complete control over their transactions.
When new transactions take place in a blockchain network, a block will be created. Once the block is created, the transaction will be broadcasted over the peer-to-peer network. It consists of computers(called nodes) that will validate the transaction.
After the transaction is verified and approved, the block will get joined with other blocks in the blockchain network which results in a new block of data for the ledger. Every time a new block is formed, it is added to the current Blockchain network, guaranteeing its security and immutability.
Blockchain acts like a database to store transactional information, but the benefit is beyond this traditional database. Most prominently, it avoids tampering with the data by unauthorized or unknown access and keeps the data in blocks safe and secure. Adding these, here are some significant benefits of blockchain to know: