WHAT IS BLOCKCHAIN TECHNOLOGY?

                                                                                                   By - NILESH MISHRA

Blockchain technology eliminates the need for a trusted group to facilitate digital relationships and is the backbone of cryptocurrencies.

It is a type of ledger technology that stores and records data and it is a buzzword that seems to dominate any conversation about the future of technology, from the power of private money to new forms of cybersecurity. While technology applications seem endless, not many people are fully convinced of what a blockchain is.

In the old days, transactions were tracked on labels that were written and stored in financial institutions. Traditional labels can be researched, but only for those with special access. Blockchain embraced these ideas and created democracy by removing the secret of how information - which is data from transactions - was handled.

In its simplest form, the blockchain is a widely traded list that is constantly updated and updated. Also known as distributed ledger technology (DLT), it can be programmed to record and track any value across the network distributed across multiple locations and businesses. This creates a kind of global spider for connected computers.

Although often associated with cryptocurrencies, blockchain technology is not unique to the digital assets market. Due to its unique ability to add and store data, it can perform many other functions in the industry list.

What does a blockchain look like?

The blockchain can be divided into two parts: the block and the chain.

A block is a collection of data linked to other blocks in chronological order in a visual sequence. You can think of a blockchain as a train that connects multiple carts connected to a line, where each car contains a certain amount of data. Like the riders in a real-life train car, the blocks may contain a certain amount of data before they are filled.

Each block also contains a timestamp, so it is clear when the data was recorded and stored - an important factor in things like work or supply chain data when knowing exactly when a payment or package was processed is important.

How many copies are there?

There is not a single main copy of the blockchain. Instead, everyone who uses a computer contributing to a network - also known as a "node" - keeps a copy of the blockchain, and regularly checks with other nodes to make sure everyone has the same data record. By allowing each donor to keep a copy, it means that there is not a single point of failure. This excellent security layer also means that it is almost impossible for malicious agents to tamper with data stored in blockchains.

If a hijacker wanted to defraud any blockchain transaction, they would have to log into the service of every single network provider around the world and modify all records to show the same thing.

Unlike the database of financial records held by traditional institutions, the blockchain is completely transparent and aims to be distributed, distributed across networks, and in many cases, fully public. By prioritizing transparency about transactions and how information is stored, the blockchain can serve as a single source of truth.

How is data added to the blockchain?

Besides being transparent with data, blockchain is also a secure way to store it. To use Bitcoin as an example, here is how transactions are added to the new block:

When a bitcoin user submits a transaction, a message is generated with both the sender and recipient public addresses and the value for which they are made. The sender takes this data, adds their secret key to the mix and makes its hash (converts it into a fixed length code.) This creates a digital signature to confirm the owner of the bitcoin value he intends to send. to the recipient.

The sender then packages this digital signature with his or her public message and key and distributes it over the network. It's like, “Hey, everyone! I want to send this person bitcoin. "

(Note: For most wallets and other applications, all of this happens “under the hood” and users do not have to deal with the processes themselves.)

The packaged activity joins a waiting room full of other unconfirmed activities looking to add to the blockchain, known as the "mempool."

In the case of the Bitcoin network, miners who have successfully acquired new blocks with proof of performance then take a large quantity of purchases from the mempool (usually based on which have the highest value attached), verify each transaction to ensure the sender actually has the bitcoin value in the wallets they want to send , use it with software to ensure that aggregated data (digital signatures, messages and public keys) are valid, add it to a new block and finally distribute the proposed new block. network so that other miners can re-evaluate that all is well.

This is similar to the process used in proof-of-stake blockchains, with the exception of mining sites that acquire and validate transactions, users who have confiscated the amount of cryptocurrency - known as "stakers" or "validators" - undertake the process.

Notes can perform different functions. This includes keeping a record of all transaction data, verifying transactions, and, in the case of mining sites or validator nodes, adding new blocks to the blockchain. Once the activity is authorized and added, the information cannot be changed or rewritten. That's why the data stored on the blockchain network is described as "unchangeable."

The blockchain simply records every transaction that has taken place on its network. For example, the Ethereum blockchain is a record of all ether transactions that have ever taken place. So when any updates need to be made about a previous job, instead of going back to the original data, a new record is made about the change.

Other cases of using blockchain technology

The blockchain eliminates the need for intermediaries such as banks. A peer-to-peer network cuts across the middle person and allows transactions to be secure, reduce costs, and can be reviewed by anyone.

In addition to spending money, blockchain technology has many other functions. Hospitals are integrating a blockchain to help track medical records data and improve their accuracy. Agricultural firms use it effectively to track food supply chain. Wise contractors rely on it to keep a record of all international agreements and changes. More recently, it has become a way to trade, sell and validate authentic digital art pieces.

Blockchains become a very important part of the way we live, work and communicate with our digital knowledge. Like all other new, flexible technologies, there is no set of standards, and the overall impact is still being felt. But there is no doubt that this is a stay.

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