A distributed database or a ledger which shares its information all across the computer network and its Notes is called a Blockchain. They play the most important role in cryptocurrency and its systems. Thanks to Blockchain decentralised record and secure transactions can happen. This is not the only Function of Blockchain apart from cryptocurrency. Blockchain data can easily make the industrial data non alterable.
Once a Blockchain is made it cannot be changed. When the user or the program of Blockchain enters data in it then the Blockchain works. Which means only trusted parties are able to broach the Blockchain. The people such as auditors can easily make mistakes in the Blockchain and its software that’s why they are not needed here.
When bitcoin was introduced in 2019 Blockchain became the most used software platform. After bitcoin today many cryptocurrencies have launched which means decentralised finance and applications as well as nonfungible tokens are also in the game.
Working method of a blockchain
Just like spreadsheets and databases a block chain is working on similar capacity. Basically it is a database where you enter the information and that information gets stored in it. The only difference between a normal spreadsheet and the Blockchain is the structure and accessibility of the data.
There are certain programs in the Blockchain which are known as scripts. These scripts conduct tasks which are similar to the database. Such as your enter information and then access it. After your work is done, you can save and store this information somewhere safe. The distribution of Blockchain happens with multiple copies. These copies are stored in more than one machine. All of the copies need to match in order for them to be valid.
All the information regarding bitcoin is collected in the Blockchain. After that the transaction happens and it is entered into a file which is for MB in size. It is known as a block. Once the 4MB block is completely full of information the data goes through the cryptographic hash function. There are different block chains which have different sizes of blocks.
After the hash function, a hexadecimal number is created. Which is known as block header hash. Then you enter the hash into its corresponding block header. It is encrypted with the information that is already present in that blockhead. Which creates a chain of blocks that’s why it is named as Blockchain.
Transactions
There is a specific process of transactions through a Blockchain. Each transaction depends on the appearance of the Blockchain. If you are going through the bitcoins Blockchain then once you initiate a transaction with your crypto wallet the application gives you an interface for a Blockchain.
