What is Blockchain?
If this technology is so complex, why call it “blockchain?” At its most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words “block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public database (the “chain”).
Developing applications for safer transaction; bringing your future today and now.
A futuristic and quite visionary technology as believed by most, blockchain as a technology promotes transparency and empowers people to think differently about exchanging value and assets, sharing data, doing business and enforcing contracts. It is transforming the digital information ecosystem with respect to data collection and preservation. Also known as a public ledger of the transaction, blockchain is a shared technology administered in a shared network of computers, rather than resting with a single provider. Data can now be shared across multiple organizations enabling business processes to eliminate scope for frauds while also create new revenue opportunities.
This has not only introduced newer means of transaction methods with decentralized cryptocurrencies but also heavily encourages online economy without any discrepancies. With the successful implementation of blockchain in cryptocurrency domain with the likes of Bitcoin, blockchain has grown beyond its originating point- fintech.
Blockchain is a list of transaction records commonly known as blocks by using cryptography. Every block in blockchain stores data and hence, also known as “distributed ledger.” The blocks are organized in chronological orders making a chain that is linked together. Every first block in the blockchain is known as Genesis Block.
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A Step by Step Guide How Blockchain Actually Works
Blockchain consists of three principal technologies that collaborate to give a secure digital trade option that is:
- Private Key Cryptography
- A Distributed Network with a Shared Ledger
- Maintaining transaction records and security
#Step 1
Creating a Private Key
Via cryptography, the person starts with creating and digitally signing it with a private key. It is usually a data structure that includes logics of transfer of value, source, a destination address, and relevant rules necessary for validation.
#Step 2
Gossip Protocol
Vernacularly known as flooding protocol is used for propagating transactions and data among all the members of an ad-hoc network.
#Step 3
Confirmation
The transactions will be in the block form once the transaction has been validated. Further, it is propagated onto networks while confirming the transaction.
#Step 4
Cryptographical Ledger
After confirmation, it becomes the part of the ledger to assure that future blocks are linked automatically with the help of cryptography. The link is known as “hash pointer” and, in this phase, the transaction gets second confirmation.
Blockchain has become one of the biggest revolutions in the trade-trend. There is no probability of missed transaction, and machine or human errors
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