Blockchain

Blockchain

To define the blockchain in the simplest way is the blockchain is the process of completing the transaction done between two parties from the miners and adding this transaction into the chain of network.  If we elaborate this Blockchain than it’s consist of two word Block and Chain, Block is representing the transaction. All the transaction done between the two parties are stored in the block. The block can able to store multiple transaction simultaneously one by one and once the one block is full with the transaction, another block create and in this new block, transaction start being store. The link of block is also established, hence if one block is deleted and not able to trace the connected block and hence can identify easily about something happened wrong in the network.

Once the block get added into the network, no one can edit the block, modify and delete this block. In the blockchain technology, the miners play an important role. The miners are the one who are actually start verify and validate the block. The miners are authenticate the data (transaction). When the transaction initiated by the someone, this transaction is goes to the miners, Miners are nothing but the huge and strong computer system own by the owner who are actually verify and validate the block i.e. transaction. Once the transaction is verify and validate, it gets added into the chain of network which spread all over the world. Important thing is that the blockchain create so many multiple copies of the transaction and stored in the multiple chain, so that if anyone would like to do update in the block, it must also have to update into the various block in the blockchain.

Because of the same blockchain is having the strongest network available till now. In Block chain it’s not only creating the multiple block of the same transaction but also it stored the same block into the multiple system all over the globe. And second important aspects is that no one can able to modify, edit or update the transaction.

Blockchain is a similar database that allows multiple users to record and make changes in it. Once the data is entered, it cannot be removed or changed as it is only provides the features of adding the data only.

Every time if anyone like to do some changes in the transaction the new copy of it generate, which indicate the new transaction, represented by the block and after gets verified it gets added into the blockchain.

When one block is get filled with transaction, the new block is generated which is gets added with latest state of the blockchain network.

Blockchain can be explain with the example. It is similar like a Notebook, in which number of pages contain the data, page are indicated by the block in blockchain network. As this pages are link or connected with each other in the same way all the blocks are connected with each other. But the difference is that modification or to update the data cannot done. Always new page generated to store the new transaction or to store the modification if done.

There are three main component of the Blockchain technology

Private Key: To give the information about the private key cryptography it means that when two people are doing the transaction than this two people are having their private key and public key with them. This Private and public key help to secure the data or in simply we can say the transaction. The private key play important role to secure the data by encryption and decryption the data at sender and receiver end. The private key work as digital signature to not only secure the data by encrypt it but also validate and verify it.

Distributed network: when it comes to validate and verify the data on the blockchain network, this private key cryptography combines with the network component, network component is the kind of the puzzles need to solve by the miners to validate the block. The process of certifying the mathematical verification used to secure the network. By combining the use of cryptographic key with a distributed network, blockchain allows new type of digital interaction.

Process of Confirmation: one of the most important aspects of the blockchain technology is the way that it confirms and validates transaction. In the examples above in which two individual wish to conduct a transaction online, each with a private and public key, blockchain allows the first person to use the private key to attach information regarding the transaction on the public key of the second person. This information together forms part of a block which contains a digital signature as well as a timestamps and other relevant information about the transaction, but not the identities of the individuals involved in that transaction. The block is then transmitted across the blockchain network to all of the nodes, or other component parts of the network, which will then act as validators for the transaction.

There are three main component of the Blockchain technology

Cryptocurrencies: Cryptocurrencies is one of the type of assets like gold, as the availability of gold will reduce the price of the gold will increase, In the same way when the availability of the crypto assets will reduce the price of crypto assets will increase.

 The idea about building the cryptocurrencies came into the existence at around year 2008, when the market crash and so many people loss their huge amount as the money was controlled by the centralized authority and also the central authority used the public money to lend the people and earn interest on them. By doing this only central authority has benefits but not the actual owner of the money.

Central authority has full control on money and assets whenever the central authority like to declared it as legal tender they can. By having the central authority people cannot be able to use their assets in their own way.