Home » Technology » Everything you need to know about BLOCKCHAIN

Everything you need to know about BLOCKCHAIN

If this technology is so coplex, why call it “blockchain” ?. At its most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of words. When we say “block” and “chain” in this context, we actually mean digital information (“block”) stored in a public database (“chain”).

A blockchain is a growing list of records, called blocks , that are linked using crytograpy. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree).

By design, a blockchain is resistant to modification of the data . It is an open, distributed ledger which will record transactions between two parties efficiently and during a verifiable and permanent way”. For use as a distributed ledger, a blockchain is usually managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks, which needs consensus of all the network majority.

Although, blockchain records aren’t unalterable, blockchain could even be considered secure intentionally and exemplify a distribution computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been claimed with a blockchain.
“Blocks” on the blockchain are made up of digital piece of information. Blocks store info about transactions just like the date, time and dollar amount of your most up-to-date purchase from Amazon, blocks store information about who is participating in transactions, blocks also stores info that distinguishes them from other blocks.

While the blocks within the example is getting used to store one purchase from Amazon, the truth may be a little different. A single block on the Bitcoin blockchain can actually store up to 1MB of knowledge . Depending on the size of the transactions, which means a single block can house a few thousand transactions under one roof.

Blockchain was invented by a person using the name Satoshi Nakamoto to serve as the public transaction ledger of the cryto currency bitcoin. The invention of the blockchain for bitcoin made. Its the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. The bitcoin design has inspired other applications, and are widely used by crytocurrencies. Blockchain is considered a type of payment rail.

Blockchain technology can be integrated into multiple areas. The primary use of blockchains today is as a distributed ledger for crytocrurrecies, most notably bitcoin, Major portions of the financial industry are implementing distributed ledgers to be utilized in banking. Blockchain based smart contracts are proposed contracts which will be partially or fully executed or enforced without human interaction. There are also a number of efforts and industry organisations working to employ blockchains in supply chain logistics and supply chain management.

Currently, there are a minimum of four sorts of blockchain networks-public blockchains, private blockchains, consortium blockchains and hybrid blockchains.

Scroll to Top