The Things You Need To Know About BlockChain

These days the words like Digital Currency, Cryptocurrency are word to mouth. More and more people are investing in Digital Currency. When we talk about Digital Currency, The Blockchain Concept automatically becomes the HOT topic for discussion. Even Banks, Corporate organizations also talking about it. Blockchain technology becomes the big innovation of the century. 

The concept must be clear for the blockchain before taking it further.

What is the Blockchain?

Blockchain was first implemented in 2009 in Bitcoin. It is usually referred to as the transactional layer and backbone for the internet.

In easy language, we can define the Blockchain as an online ledger just like a manual ledger in which the transactions are recorded. Each and Every Transaction done by each participant on the network is stored. It is managed by the nodes which are peer to peer connection.   The record on the blockchain can be easily accessible by the participants. All the transactions in the blockchain and stored in the form of a group and are connected to the participants who made transactions.

How Does blockchain work?

The transaction is done between the participants on the network. When two participants make a transaction. Information is broadcasted to the participants to get the information to get it validated. Once the participants get it validated the transactions got verified, Then it automatically get added to a block together with other transactions. This block is then hashed. Each block is connected to the participants where the transaction came from. In this way, the position of the block in the chain is guaranteed and there is the surety of security of transactions from modification and tampering. After the whole process, the block is added permanently to the blockchain and displayed to all its participants. This way transaction got completed.

How Does Blockchain Work: The Process

First, a user or a node will initiate a transaction by signing it with their private key. Basically, the private key will generate a unique digital signature and make sure that no one can tamper with it. In reality, if someone tries to modify the transaction information, the digital signature will change and no one will be able to verify it. Therefore, it will be rejected.

After that, the transaction will be broadcast to the verification nodes. Basically, here, the blockchain platform can use different methods to check whether the transactions are valid or not. These methods or algorithms are called consensus algorithms.

Anyway, once the nodes verify that the transactions are authentic, they will get a place in the ledger. In addition, it will contain a timestamp and a unique ID to further protect it from any event.

Then the block will link to the previous block, and then a new block will form a link to this block and so on. And in this way it creates a chain of blocks, hence the name blockchain.

The important things you should know about Blockchain.

1. There are two types of Blockchain i.e:- Public Blockchain and Private Blockchain.
2. The Transactions on the Blockchains are stored in the “Blocks”
3.  The combinations of Blocks “Chain” are developed and Cryptographic signature is used with a block while adding into the chain.
4.  No Cryptocurrency works without Blockchain
5.  All transactions that are verified and confirmed are stored on Blockchain.
6.  Blockchain is an open ledger with all decentralized and immutable transactions.
7.  Transactions in Blockchain can’t be modified or tampered.
8.  Two Parties can transact without the involvement of a third party.