Most people are now curios to know more about this BLOCKCHAIN technology because of its advance way of storing information and keeping track of every transaction accurately.
But What is a BLOCKCHAIN?
BLOCKCHAIN is a technology that can record or track any type of information from financial transactions, medical records to land titles, etc. All information will be recorded as blocks. Each block will contain created time and data. By connecting all the blocks we will have a BLOCKCHAIN that stores information in an order of time.
If a change of information is made on a specific block, rather than overwriting that block, a new block would be to record that adjustment. THERE IS NO WAY TO OVERWRITE A BLOCK!
BLOCKCHAIN was designed as a symbol of decentralization. It works on a peer-to-peer network and it is a distributed ledger that is completely open to anyone on a large network of nodes.
A distributed ledger is a database that is consensually shared and synchronized across a network. It allows transactions to have public "witnesses," thereby making a cyber attack more difficult.
They are connected computers or servers via Internet that form up a system or network. Peer-to-peer network is created when two or more PCs are connected which share resources without going through a separate server.
Node is a device that hosts the BLOCKCHAIN, which is part of a digital network. (computer, mobile phone, etc.)
-Nodes are any computer that hosts the blockchain. Nodes will get a copy of data that stored on the blockchain when they join the network. Nodes are operated and maintained by ‘Miners’.
There are 3 requirements before a block can be added to a chain.
- A cryptographic puzzle must be solved.
- The solution or proof of work is shared with all the computers in the network.
- The network checks the proof of work; a block will be added once correct.
The combination of these complex math puzzles and verification by many nodes ensures that we can trust each and every block in the chain, because the network does the trust building for us.
Because of its uniqueness, CRYPTOCURRENCY also uses the BLOCKCHAIN technology in recording and storing all details in every transaction. But what is a CRYPTOCURRENCY by the way?
Follow me on my next article about what is CRYPTOCURRENCY?.
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