Blockchain is one of the world’s top technology trends in 2020. I’m going to describe blockchain from the scratch in my series of articles.
Introduction to Blockchain Technology?
Blockchain can be described as a chain of blocks that store data or information with temper proof technology using cryptographic hash algorithm. Each block has a cryptography hash of previous block, timestamp and data (In bitcoin blockchain data will be transaction details like amount,sender, receiver).
One of the major use cases of this technology is cryptocurrency, It allows bitcoin and other cryptocurrencies to operate without the need for a central authority, It also can make most of all the industrial products to be smarter and more efficient.
In basic blockchain structure, you can see what each block contains and how the cryptographic hash system makes this connection to be immutable. Let me explain to you how this structure helps it to be immutable.
The first block of all the blockchain protocol always will be genesis block or block Zero. Each block contains a hash of the block and the hash of the previous block with data. If someone tries to modify the data inside any of its block, That Hash of the block will get changed and makes all the subsequent blocks to be invalid.
Let’s consider A B C in the distributed network. A ledger holds details of every transaction that takes place on the network, Each member will have the copy of this complete ledger.
For example, you and three other friends hold a copy of the ledger (i.e. bank statement ). When any of your friends make a transaction then the network will check the last transaction and verify if it is the same in all the other three. once the verification is done, can a new transaction take place. After the transaction is completed, it will be updated in all four ledgers.
If anybody tries to manipulate or create fake transactions in a ledger, They can be pushed out of the network.
This is why this network is more secure and immutable. Here is the benefits of using this technology
Benefits of using Blockchain Technology
This is why this technology is going to create more impact on all industries.
In upcoming article,I will describe about different types of blockchain and different use case of this technology.
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