This article is entirely dedicated to the understanding of the Blockchain and the technology that is going to advance on its footsteps. Let us understand why we must have an insight of the Blockchain technology and why it is gaining the trust of keeping records and financial transactions.
Introduction To Blockchain Technology
Blockchain is a type of essential database that stores information and data from around the world. The key feature of this database is that it is difficult or next to impossible to hack and change. It appears to people as a very difficult concept to understand but it is quite simple. Blockchain is based on Digital Ledger technology solutions which enables the access for multiple people or participants in a decentralized database. In order to understand what Blockchain is, one must understand what is database and the concept of decentralization is.
We must understand the difference between database and Blockchain. Database is basically systematic and organized collection of data or information that is often stored in computer system or can be accessed by any number of users at once but apparently database is owned by an appointed individual or any business head that has complete control over the database and access. Nobody can access the information or data without the permission of the head. Well this is one of the things that distinguish the database from Blockchain. As the Blockchain indicates with its terminology, the information is stored in the blocks together which hold sets of information. When the capacity of the block is filled, those blocks are chained onto previously filled blocks of information making a Blockchain. But the Blockchain is different as it is not headed by any particular individual. It has nobody as itâ€™s in charge as the run people who owns the nodes in different geographical locations with their heavy computer systems to keep it working.
Working Of Blockchain Technology
The fact that it is not owned by one individual brings it in the category of decentralized database. It is not operated or owned by any one company under which the data is being used. Anyone who is running the system in their heavy capacity computers becomes the network owner and operator of the single entity. This system decentralizes the system and concept of the ownership by one individual is eradicated.
What Is An Advantage Of Using Blockchain Technology?
As the nature of Blockchain is decentralized, all the activities are visible and can be viewed by a personal node or by any individual who is connected on the Blockchain explorer as the transaction occurs on live medium. Every node contains its own copy of the chain and updates evrytime new and fresh blocks are added that this feature enables the transparency and tracking data.
The Process Of The Crucial Transaction
One of the features is the way it authorizes the transaction. If someone wants to perform a transaction, the information is gathered together in a block. This particular block may contain the digital signature, information and timestamp but not the personal details of the individual in the transaction. This block that is to be transacted will transmit across the network of the nodes that is build. When the right individual gets the block through the network and uses the right private key and matches it, the transaction gets completed and successful.
These Blockchain now can be operated in many ways in order to secure the transactions and create transparency among the nodes. The founders of the Blockchain are trying to expand the technology of Blockchain and its influence in future. As far as we know, the success of Blockchain is influencing the world to shift to it and increase its demand in the future digital world.