What is Cryptocurrency and Blockchain Technology?

Cryptocurrency:

A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authorities like banks.

It’s peer-to-peer network that enables anyone can send or receive payments from anywhere.
Crypto works like Distributed public ledger (blockchain plays the vital role here) which stores all transaction details held by the currency holders.
Cryptocurrencies are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins.

Blockchain Technology:

Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the “chain,” in a network connected through peer-to-peer nodes.
It uses Hash function to generate a non-readable and non-understandable value.

Hash function:

We can send data of any size but the output is fixed.
Hash(data) -- > fixed size output (random string)
If we send the same data again and again it will output the same random.
Those random numbers are like half are 1s and other halves are 0s.
It’s more like Avalanche effect: if we made a small change in the input data, it will change the whole output data.

Drawbacks:

Preimage Resistance: for given Y a hash value, you can’t able to find X input data Such that hash(X) == Y. But you can able to find that it would take 2256 times to achieve.
Collision Resistance: there are two different input data which is X and Z, X is not equals Z but hash(X) == hash(Z). Its not happens frequently its happens when we try 2128 times. But this type of collision not happens in today’s modern world computers.

For example: sha-256, md-5

md-5: Collision resistance happens at the iteration 264, So its easily broken by the modern computers within a second. Because md-5 output size is 16 bytes.
Sha-256: Collision resistance happens at the iteration 2256, So its harder broken by the modern computers but it can be broken. Because sha-256 output size is 256 bytes.

History of Blockchain Technology:

2008 - Bitcoin whitepaper by satoshi Nakamoto.

2009 - Bitcoin(BTC) First decentralized currency

2011 - More Cryptocurrencies clones and specialized projects

2014 - Bitcoin adoption more businesses uses bitcoin

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