Blockchain Technology

Nowadays whenever we read about digital transactions, investment or banking, we also see a term blockchain. What does it mean? How does it work?

Let us try to know in simple words.

As the name suggests It is a chain of multiple blocks. So it is called blockchain technology.

In simple terms, Blockchain is a record-keeping technology which is based on peer to peer network topology.

Blockchain technology is a distributed database technology, no centralized database exists here.

In this technology, data is stored globally over the network n thousand of servers.

All of the systems on the network can see other’s transactions.

Blockchain technology is a ledger that is based on a p2p system that can be shared among users. In blockchain technology data is decentralized which allowing to real-time access. It preserves integrity.

In the blockchain technology every block stores some information with the hash of his previous block. Hash is unique for each block. Hash is used whenever any modification would be done in the data of the block.

Concepts of Blockchain

The three basic concepts of blockchain technology.

1.Block

2. Miners

3. Node

Block:

Simply block is a page of the record book. It stores data of transactions.

It consists of three parts:

Whenever the first block is created, a nonce generates a cryptographic hash. The data in the block is considered signed forever tied to the nonce hash.

Miners:

Mining is a process in which miners create new blocks on the chain. For security, every block has a unique nonce nad hash. Every node has some information about its previous block.

When any transactions happen, the miners create a proof of work that validates and verifies the transaction and all the verified transactions are bundled and added as a block in a blockchain.

Node:

There is no centralization of data. No computer or no organization can own the chain. Node is an electronic device that maintains copies of blockchain and keeps network functioning.

Whenever a block is successfully mined the change is accepted by all nodes over the network.

Advantages of Blockchain:

Applications of BlockChain:

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