In its most simplest definition, the technology of storing and recording the data is defined as a Blockchain, but as we know it today defining the word ‘BLOCKCHAIN’ simply is just not enough. Blockchain not only influences the lives of those around us, but also ensures the advancement of technology around us. By the end of this article we are certain that you will have a much stronger grasp of what blockchain is.
Blockchain is the keyword that influences the upcoming technology developments in crypto currencies to the newly introduced cybersecurity. There exist a huge number of blockchain applications but still many people are unaware about it. Blockchain is not exclusively linked to the digital asset market or crypto currency; it can be of assistance for performing tasks in different industries.
BLOCKCHAIN: THE GENERAL APPEARANCE
The block and the chain are the main components of blockchain. A block is a virtual chain which is a data collection connected to other blocks in a chronological order. It is a multiple carriage train carrying a specific amount of data.
The block has a record of when the data is recorded and stored. This facilitates the smooth transactions or supply chain data which required the specific data about when the payment or package was being processed.
ADDING DATA TO A BLOCKCHAIN:
Block chain is one of the safest ways to store data. When a transaction is sent by a bitcoin, it creates a message using both the sender and receiver’s public address and the transition amount. The sender creates a hash using this data (fixing the length of the code). As a result a digital signature is created to ensure the confirmation of the person who owns the bitcoin amount and send it to the specific intended receiver.
The digital signature is then packaged with the message and then broadcasted to the network through its own public key. The packaged transaction along with the unconfirmed transactions waits in a “mempool”.
When working with a bitcoin network the successful cryptominers who discovered new blocks through proof-of –work, take a highly paid transaction from the mempool verify it and then run a software to ensure that the packaged data is authentic. The verified data is then added to a new block ultimately broadcasting the newly created block on the network so it is rechecked by other miners as well.
The process is similar to that used in proof-of-stake blockchain, the only difference is that the “validators' ' or “stakers' ' carry out the process which involves discovering mining nodes and transaction verification and securing an amount of cryptocurrency.
A variety of tasks are performed by nodes, which includes addition of new blocks to the block chain when working with mining or validator nodes and also keeping a history of transaction data record. No transaction information can be altered or rewritten once it is approved and added. The data stored on a blockchain network is thus described as immutable
Every transaction that has ever taken place on the network is simply recorded in the blockchain. The Ethereum blockchain is an example of a record which keeps track of all the ether transactions ever to take place. So if a previous transaction needs an update, a new record is created for the change rather than going back and changing the initial data.
Intermediaries like banks are no more required when working with a blockchain. The middleman is exempted by the peer-to-peer network and this allows a secure transaction that cuts down the cost and can also be reviewed by anyone.
CONCLUSION:
The blockchain technology is not just confined to finances it has many other important functions. Some hospitals are using it to track medical record data and make it accurate. Logistically the blockchain is used to track the supply chain of goods and keep a record.
The importance of blockchain is increasing and it is becoming an integral part of how we interact, live and work with the obtained digital information. There are no set standards and the impact is still to be discovered. The trends define it to be a success, blockchain technology is out and it is here to stay.