As we know that the 21st century is all about technology. There is a greater impact of technology in our everyday life like blockchain technology. So, with the increase of modernization day by day there is a need for modern technologies and now people and willing and accepting new technologies. By using voice notes commands, remote-controlled devices, like AC and TV, etc. the modern technology has made a space in our lives. In this article, we will briefly discuss blockchain technology. It’s modern technology and in 2021 its influence is greater than expectations.
So let’s take a look at blockchain technology.
A blockchain is a database that stores a block of information to form a meaningful and chronological single source of truth for data.
Blockchain technology is basically a distribution software network that works as a digital ledger as well as a mechanism that enables the transfer of assets. Blockchain is a technology that enables the digital flow of information.
What is Blockchain?
Blockchain is a revolutionary technology. We know it as a Distributed Ledger Technology (DLT). It has a block of information. Blockchain basically has a list of information called a block that is linked with cryptography.
In simplest words, we can describe blockchain as a data structure.it holds transactional records to maintain security, as well as ensuring transparency and decentralization.
As we know that a blockchain is basically a revolutionary technology. It impacts different industries. It is introduced for the first time in the market very modern application of Bitcoin.
Google Docs is the best example for fully understanding Blockchain technology. When we create a document on google doc we distribute it to a group of people without copying or transferring. It is known as a decentralization distribution of chain because it gives access to documents to every person at the same time.
As we know that blockchain technology is not simple as google doc but the analogy is apt. it basically illustrates three types of technologies.
How does Blockchain works?
A blockchain is basically the chain of blocks. Each block of the chain contains some specific data and information. In the year of 2009, Satoshi Nakamoto successfully discovered the first application of blockchain technology. He created for the first time a digital currency called bitcoin by using blockchain technology. So, the question is arise how does it actually work? Let’s take a look at the working of Blockchain technology.
As we know that the blocks contain some specific information but it contains that information along with the hash of the previous block. A hash is a unique mathematical code. Every block has its own unique hash. The connection between the blocks by hash will secure the blocks.
The transaction takes place on blockchain as the nodes o the networks validate these transactions. If you want that transaction will be valid then each block of the chain must refer to its hash with the preceding block. Moreover, a transaction will take place only if the hash is correct.
How Blockchain Allows Transactions
Blockchain technology allows transactions in these ways:
Blockchain networks form a digital signature by using public or private keys. It also ensures security and consent.
The need for authorization arises after the authentication is ensured.
It allows the participants to perform mathematical verification.
While transferring sender will use the private key. He also announces the transaction over the network.
After this, the information is broadcasted through the network. However, then the process of validation will starts.
From all over the network the miners will start solving a mathematical puzzle. It involves the pitting of computing powers.
When the majority of nodes agreed on a specific solution in the network then the block is added to the blockchain technology that already exists.
After the addition of the block, all the blockchain that already exists will update all nodes in the network.