How Does Blockchain Technology Work?
Although BlockChain is Still a bit far from Mass Expansion, Let's go Over some facts. The Blockchain technology is a decentralized, peer-to-peer distributed ledger technology which makes a record of any digital asset transparent and immutable, and works without the need for any third-party intermediary. Sometimes called distributed ledger technology, blockchain makes the history of any digital asset unalterable and transparent by using decentralization and cryptographic hashing. The term Blockchain technology is a facility which stores public transaction records, also known as blocks, on multiple databases known as an a chain on a network connected via peer-to-peer nodes.
What is blockchain?
Essentially, a block chain is digital ledgers, or records, of all transactions, which reside in each of the computers involved in maintaining them. A blockchain is a decentralized, distributed, and usually publicly accessible digital ledger composed of records called blocks, which are used to record transactions between many computers, such that any one involved block cannot be altered retroactively, without modifying all the following blocks. A blockchain is basically a digital ledger of transactions, which are duplicated and distributed throughout an entire network of computer systems in the blockchain.
What Each Block Contains?
Each block in Bitcoins blockchain contains multiple transactions, and each time a new transaction occurs on the blockchain, the ledger for that transaction is added to the ledgers of every participant. Each block can only store so much information, so new blocks are constantly added to the blockchain, creating a chain. A blockchain organizes the information added to the blockchain in blocks, or groups of data.
A blockchain is a form of database which stores data in a systemized way which makes it easier to access by users. The technology behind Bitcoin and other virtual currencies, a blockchain is an open, distributed ledger that records transactions between two parties effectively, in a verifiable, and permanent manner. This technology can be defined as shared ledger, which allows thousands of computers or connected servers to keep a single, secure, immutable ledger.
The bitcoin blockchain works like a ledger, tracking each bitcoin transaction, and is self-verifying, meaning the whole network of nodes - the various computers participating in the network - are continuously checking and verifying each move. Each node has their own copy of the chain, and the network needs to approve each new block that is mined, in an algorithmic fashion, in order to keep the chain updated, trusted, and verified. Mining In terms of the Blockchain Technology, the process of adding transaction details to a current digital/public ledger is called mining. Although this term is associated with Bitcoin, it is also used for other Blockchain technologies. Since there is a lot to cover in one blog, we will go into more detail on block chain technology in our next post. Using blockchain technology, even though it's new and seems complicated, everything just clicks into place once you have a fundamental understanding of it.