What is Blockchain and How Its Work?
Hello readers, I hope you are all well. Today’s article is Blockchain. In this, we will see:-
- what is blockchain?
- How does it work?
- What are the fundamentals of blockchain?
Before we read Blockchain,
let’s look at an example. Many of you must have voted. But how many people confirm whether their vote was cast or not? This is a problem all over the world. If your vote was cast, was it the same person you voted for?
And there are many such problems. Whenever the opposition party says that the polling station people did not give correct results, or the elections did not go well. Or the counting of votes did not go well. So, in the end, what is the result? The solution is to either have re-election or a recount. This whole process is a waste of money and time.
If we can’t trust this system for the first time, how can we trust this management for the second time? And it’s a wonderful scenario, where blockchain can be used in real life.
What is blockchain and how does it work?
If we go to Google today and just type the word blockchain, we get approximately a 289million results. Blockchain is one of the most popular and cutting-edge technologies.
If these 289 million results are concluded, then it is clear that Blockchain is a decentralized, distributed, transparent, trustless system. There is no need for any kind of middle man, nor any kind of central authority. The best example of this is all the organizations where there is a middle man. Whether it is in the form of a bank or any other form.
Blockchain builds a trustless system. Blockchain creates trusts within a decentralized system using a consensual system. The word immutable with blockchain is often used. Blockchain is corrupt. This means that anything written once inside the blockchain cannot be removed again.
The update and delete option does not exist within the blockchain.
There are only two types of operations performed within the blockchain. Create and read.
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Miss Understanding
Most people think of blockchain as a bitcoin. And within our society, bitcoin is considered
a blockchain. Or it is assumed that the blockchain is limited to
cryptocurrencies only. Or blockchain can only be used within the financial
industries.
So Blockchain is an online distributed system in which you can store any kind of
information. And this information can be accessed by every participant. In the
blockchain, all information is stored in a container or block, like a register.
It is a chain of connected blocks that can store any kind of information in a
distributor way.
But in reality, blockchain can be used to solve many problems. As we talked about in the beginning, we have a voting system.
All these accounts that we are registering or blocking are linked to each other through China. As the name implies, blockchain.
Manly and general components of a blockchain
There are three things, manly and general, within the blockchain.
Block data
Inside the block data, if we talk about cryptocurrency, it contains the Sender, Receiver, Coins, Address, and all such information.
Block data hash.
Block data hash is also called block fingerprint. This is the identity of this block.
Previous block hash.
The previous block the hash links the new block to the hash of the last block. So that the whole of China remains the same.
P2P network peer to peer
Within this, participants can send direct payments or messages to each other. Without
any Center Authority. Each participant has a copy of the entire ledger.
So, whenever there is a transaction, each participant takes note of it. The biggest advantage of this is that no slave can deceive anyone inside the blockchain. Because every participant is recording this thing.
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Example:
Further, we see another example. We have three people.
Mr. A, Mr. B, and Mr. C.
Mr. A and Mr. B. Already are participants in the blockchain network. And these two people are inside the network. Mr. A has $100, and Mr. B has $200. And they both know how much money they have. And the third participant, Mr. C, wants to join the network.
So, Mr. C has to prove that he has the money. Mr. C has $500. So, Mr. C has to pay $500 proof. And when Mr. A and Mr. B approve of that, they will make Mr. C part of the network. And as soon as Mr. C becomes part of the network, he will have a copy of the entire network ledger. Inside it will be a note of who has how much money.
And if Mr. C wants to send $1,000 to Mr. A, he can’t. The first reason is that Mr. C has only $500. And whenever Mr. says he sent $1000 to such and such a participant, all the participants will refuse. This is because everyone has a record that Mr. C has only $500. And because of this, the transaction will be rejected.
Hope you understand everything by now.
So blockchain is a distributed, decentralized, trustless, peer-to-peer network
technology. Which records all transactions as an event.
If you found this article helpful, please comment. Thanks for reading!
I hope you all understand that what is blockchain. How it works۔ And what are its fundamentals?
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