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Blockchain is a technology that is known to store transactional records, simply known as ‘blocks’. The blocks are present in various databases which we call ‘chain’ and the network of block and chain is connected via peer-to-peer nodes. The complete storage phenomenon is called a digital ledger. Each transaction that a user makes in the ledger gets authorised by an owner as a digital signature. This helps in the authentication of the transaction and also prevents it from tampering. Therefore, the information contained in the digital ledger is very secure. In this article, you’ll learn about what a blockchain actually is, its features, why we use blockchain, its advantages, and the need for blockchain.
Blockchain is basically a kind of digital ledger that helps in maintaining transactional records. The information is stored in regular batches which are known as blocks and they are linked in a chronological way together to configure a continuous chain of blocks known as the blockchain.
The changes that a user makes in the information that is stored in a particular block cannot be rewritten. However, the change in information gets stored as a new block. Blockchain is considered secure as powerful cryptography is used which provides sole address ownership to the user along with the crypto assets which are related to them. The crypto is designed as a combination of both public as well as private keys and they are created using a combination of numbers and letters. Therefore, this helps from the identity thrift when the address is not directly linked with the identity of the user.
The technology of blockchain was described by the scientist W. Scott Stornetta and Stuart Haber in the year 1991. Both these scientists were looking for a practical solution to time-stamp the digital documents hence the documents are not tampered with or backdated.
Various applications have grown which were underlining the actual impact they could have posed in the world on the digital economy has now heated up since blockchain started gaining popularity only a few years back.
If you have any doubts on Blockchain, then get them clarified from Blockchain Industry experts on our Blockchain Community
We must have noticed in recent years that a lot of businesses have started integrating worldwide with the help of Blockchain technology. But this still leaves us with the question of how exactly this works? Has this been a significant change or it was just a simple addition to pre-existing technologies? The upcoming blockchain is very young and it has the possibility to create a revolution in the future.
Blockchain is known to be a combination of 3 top-leading technologies which are:
Cryptography mainly consists of two types of keys which are a public key and a private key. Both these keys help the user in executing the transactions between two parties. Each user can have the two above-mentioned keys and these keys can be used to design a digital identity reference that is secure. The most important aspect of blockchain technology is this secured identity created. We can also call this secure identity a ‘digital signature’ in the cryptocurrency world. A party can use this digital signature to authorise and control the transactions.
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Following are the constitutes of a blockchain architecture:
Blocks: As we have already discussed above, blocks are a type of dataset which store important information in the form of a ‘block header’. This block header helps the user to verify its neighbourhood. We can define this information stored inside as:
The rest of the block comprises transactions that are set during the time of data mining. There are different blocks present according to their functionalities in the blockchain architecture. They are described as follows:
Orphan Blocks: These are not known to the node, basically the parent block.
Side Blocks: These are described as those parent blocks which are absent in the current blockchain.
Main Blocks: This block extends the current blockchain to the user.
Transactions : Transactions contain the address of the sender, the recipient, and also of the respective values. Transactions are collated and then sent to all the nodes present in the blocks. Each transaction is processed individually at every node.
This type of continuous movement of the data combines to build the blockchain architecture. Every transaction will have its own input and output which can either be single or multiple. The input is defined as the reference value in the previous transaction whereas the output sums up the amount as well as the address.
Mining: Just like the process of credit card networks, mining works in the same way. Each transaction that is present waits in the queue and is re-checked depending on its values. If the transaction is marked as correct, it then moves forward towards the respective blocks and gets a green signal in the network.
Following are the reasons why we need blockchain:
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If you have any doubts on Blockchain, then get them clarified from Blockchain Industry experts on our Blockchain Community
There are a few alternatives to blockchain which might be old-fashioned but have been working fine for so many years. Let us talk about them in the section below:
Top 30 frequently asked Blockchain Interview Questions !
In this article, we have discussed Blockchain and everything that is related to blockchain technology. Blockchain is basically a kind of digital ledger that helps in maintaining transactional records. The information is stored in regular batches which are known as blocks and they are linked in a chronological way together to configure a continuous chain of blocks known as the blockchain. We have also discussed the application of blockchain, the need for blockchain, the features of blockchain, the architecture of blockchain, and what are the traditional methods before blockchain.
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