Blockchain Technology

In this article we will be learning about the concept of blockchain technology and will be trying to go in a little depth to see how the blockchain really works. So I hope this article is worth your time reading.

●What is Blockchain?

So as the name suggests the literal meaning of blockchain is just a chain of blocks, but in this context we are actually talking about digital information(block) stored in public database(chain). Blockchain is basically is a growing list of records known as blocks which are linked to each other using cryptography. Each block in the blockchain contains a cryptographic hash of the previous block, a timestamp, and transaction data.

By design, a blockchain is resistant to any modification in its data. As a distributed ledger, a blockchain is typically managed by a peer to peer network collectively adhered to an internal protocol for inter node communication. Once recorded, the data stored in any given block cannot be tampered or altered in any way without actual alteration of all the subsequent blocks.

●Structure of Blockchain

So now that we know what actually an blockchain is let us further understand the structure of blockchain in detail. A blockchain is a decentralised and vastly distributed ledger that is used to record transactions across various computers. Use of blockchain removes the characteristic of reproducibility from a digital asset.

•Blocks

Blocks are nothing but digital pieces of information which hold the batches of valid transactions that are hashed and encoded into Merkle tree. Each block has cryptographic hash of the previous block and hence linking the two blocks forming a chain and this iterative process confirms the integrity of the previous block, all the way back to the very first genesis block. This structure is better explained with the figure below:

●Working of Blockchain

When an new transaction comes to blockchain, majority of the nodes must execute algorithms to verify the history of individual block, and if the history and signature is valid then and only then the new block i saccepted into the ledger. This distributed model is what allows blockchain to run as a distributed ledger without need of any central authority.

●Uses of Blockchain Technology

Blockchain technology can be integrated into various fields. The blockchain is primarily used as a distributed ledger for cryptocurrencies, mostly bitcoins. Many researchers still remain skeptical, and beleive that the technology has been hyped with unrealistic claims still many businesses are reluctant to place blockchain at the coreof their business structure.

●Is Blockchain Secure?

This technology accounts for issues of security and trust in several ways. Firstly, new blocks are always stored linearly and chronologically, that is they're always added at the very end of the blockchain. Hash codes are created by a math function that turns digital information into string members. So this question can be answered only as time progresses. Lets see how the technology unfolds and weather we will be able to use blockchain for our day to day transactions in the near future.