The 21st century is also known as the century of technology. There are many technologies trending nowadays, Blockchain is one of them.
What is Blockchain?
Blockchain is a data structure that contains transactional records and while ensuring security, transparency, and decentralization. The chain or records stored in the forms of blocks which are controlled by no single authority. This Blockchain is an allocated ledger that is completely open to anyone and everyone on the network. Once data/ information is stored on a Blockchain, it is very difficult to change or modify it.
To prove its authenticity, each and every transaction on a Blockchain is secured with a digital signature. The data stored on the Blockchain is tamper-proof and cannot be changed, due to the use of encryption and digital signatures. Stored data is recorded digitally and has a common history that is available for all the network participants. This prevents the chances of any fraudulent activity or duplication of the transaction is eliminated without the need for a third-party.
Working of Blockchain
A Blockchain is a chain of blocks that carries data or information. In this Blockchain network each and every block stores some information along with hash (a unique mathematical code which belongs to a specific block) of its previous block. If the information or data inside the block is modified, then the hash of that block will be subject to medication too. This unique hash keys for the connection of blocks make Blockchain secure.
Nodes on the network that validate transactions in the Blockchain. Nodes are called miners which use the concept of proof-of-work in order to process and validate transactions on the network. For the valid transactions, each block must refer to the hash of its preceding block. The transaction takes place when the hash is accurate. If the hacker tries to attack the network and modify the data of any particular block, the hash attached to the block will also get modified.
When modified hash won’t match with the original one, the breach will be detected and this ensures that the Blockchain is unalterable as if any change made to the chain of blocks will be indicated throughout the entire network and will be detected easily.
Features of Blockchain
Blockchain is decentralized as no single individual or group holds the authority of the entire network. No one can modify a distributed network at own. It allows transparency and security while giving power to users.
- Peer-to-Peer Network
With the help of Blockchain without the need of any third party, the interaction between two parties through a peer-to-peer model.
This feature refers to the fact that any data once written on the Blockchain cannot be changed. The data stored in a Blockchain is non-susceptible to alterations due to immutability.
Due to immutability embedded in blockchains, it becomes simpler to detect the tampering of any data.