A Glimpse at Blockchain
What is Blockchain?
A shared, distributed ledger that facilitates the process of recording transactions and tracking assets in a business network is known as a blockchain. This can include both tangible and intangible assets. A Blockchain can validate and relay transactions. It grows rapidly with new blocks added to the Blockchain by the miners.
Blockchain grows when the number of transactions increase. Blocks record and confirm the time and sequence of transactions, which are then logged into the blockchain, within a discrete network governed by rules agreed on by the network participants.
You would wonder why a blockchain is this important. With Blockchain technology you can see all the transactions transparently since the day you received your first Bitcoin.
Bitcoin is a digital currency and it was launched in 2009. Unlike traditional currencies, which are issued by central banks Bitcoin has no central monetary authority. No one controls it. Bitcoins aren’t printed like dollars or euros. They are mined by people and increasingly by businesses.
How it works?
When a computer connects to a Bitcoin network, a copy of Blockchain is initially downloaded automatically to the computer. A Blockchain has the complete information about addresses and balances from the genesis block.
Each block is consisted with two unique hash values for the identification. They are, time stamped batches of recent valid transactions and the hash of the previous block. The previous block hash links the blocks together and prevents any block from being altered or a block being inserted between two existing blocks. In this way, each subsequent block strengthens the verification of the previous block and hence the entire blockchain. The method renders the blockchain tamper-evident, lending to the key attribute of immutability.
To be clear, while the blockchain contains transaction data, it’s not a replacement for databases, messaging technology, transaction processing, or business processes. The blockchain contains verified proof of transactions. However, while blockchain essentially serves as a database for recording transactions, its benefits extend far beyond those of a traditional database.