Blockchain
A blockchain is a digitized, decentralized, public ledger of Bitcoin transactions. The technology verifies transactions and creates a “chain” of blocks of data including a timestamp that is linked to other blocks so that a block can’t be changed. The entire information is persisted using cryptography; it is secured using cryptography, so it ensures that the privacy of the user is maintained and data cannot be altered; information on a blockchain network is not controlled by a centralized authority. For unlike modern financial institutions, nobody controls the data within a Blockchain. The data is maintained by the participants of the network and they are the democratic authority in order to approve any transaction which can happen on a blockchain network.
The blockchain has the ability to change the way data is stored, shared and managed. The most powerful aspects of the technology are the barriers to tampering or deleting information which has been added to the chain. The blockchain should be more cost-efficient, secure and quicker than other technologies in use today. Blockchain is a public distributed ledger it works using a hashing encryption each and every block has a hash value which is the digital signature of the block all the transactions are approved and verified on the blockchain network using proof-of work consensus algorithm. The blockchain network utilizes the resources of the miners who are there to validate the transaction and the miners in lieu of putting off investing in their resources and validating the transactions get rewards in terms of Bitcoin and that process is called mining.
Blockchain uses Private Key Cryptography to secure identities and hash functions to make the blockchain immutable apart from this we use P2P machines on the network to help in maintaining the consistency of the distributed ledger. The program gives the blockchain its protocol based on the requirement. In any block chain every transaction that gets verified and validated in the process of creation of a new block is logged along with the information of time, participants, date as well as the amount of every single transaction. Each node in the network owns a full copy of the blockchain. Each transaction is verified by the Miner after solving complex math puzzles and maintain the ledger. The mathematical principle ensures that the nodes automatically and continuously agree to the current state of the ledger and every transaction in it. If anyone attempts to corrupt a transaction, the nodes will not arrive at a consensus and hence will refuse to incorporate the transaction in the blockchain.
Blockchain is considered to be a highly secure system due to its digital signature and encryption. The system is specially designed to be secure, convenient, and tamper-proof. A system that is based on data stored in a number of places is immune to hackers; it’s not that easy to get access to it, and if so, any piece of information can be easily recovered.
