In this digitized world, blockchain technology is one of the topics that is bound to turn heads. 96% of financial experts believe that blockchain technology has already achieved mainstream adoption. But is blockchain related to cryptocurrency only? Let’s find out in this beginner’s guide to blockchain technology.
What is Blockchain Technology?
Blockchain is an immutable, distributed ledger used to record transactions and track assets across a network of computers, called nodes. It provides a secure method of storing information that prevents anyone from changing, hacking, or cheating it. The blockchain serves two major purposes to any business or process it is deployed – decentralization and disintermediation. Each node has a copy of the blockchain database, which removes any single point of failure. All the nodes validate the transactions before storing them into blocks, removing the need for a central party. Transactions on a blockchain happen directly between nodes or network participants, removing the need for any middlemen.
Any business process that can benefit from decentralization can invoke blockchain utilities to its own advantage to make the system faster, economical, transparent, and secure.
How Does Blockchain Work?
To understand how blockchain works, you must know some of the fundamentals of blockchain, such as blocks, peer-to-peer, mining, etc., work:
#Peer to Peer Transfers
Peer-to-peer (P2P) refers to the direct exchange of some asset (such as digital currency) between individual parties without the involvement of a central authority or a middleman. In a digital peer-to-peer network, each user is essentially an equal owner and contributor to the network. This type of network can be used for almost any type of information or file-sharing. Blockchain enables what P2P advocates: secure transfer of data without a middleman.
#Blocks
Blockchain technology stores transactional records in groups known as blocks. These blocks are connected to each other to form the ‘chain.’ This type of storage is commonly referred to as a ‘digital ledger.’ Every transaction in this ledger is authenticated and made secure via a combination of cryptography, consensus mechanism, and digital signatures. There are restrictions on how data can be added. Once stored, it is nearly impossible to change or delete it.
Continue reading: https://www.eastmojo.com/technology/2022/07/03/a-beginners-guide-to-blockchain-technology/
What is Blockchain Technology?
Blockchain is an immutable, distributed ledger used to record transactions and track assets across a network of computers, called nodes. It provides a secure method of storing information that prevents anyone from changing, hacking, or cheating it. The blockchain serves two major purposes to any business or process it is deployed – decentralization and disintermediation. Each node has a copy of the blockchain database, which removes any single point of failure. All the nodes validate the transactions before storing them into blocks, removing the need for a central party. Transactions on a blockchain happen directly between nodes or network participants, removing the need for any middlemen.
Any business process that can benefit from decentralization can invoke blockchain utilities to its own advantage to make the system faster, economical, transparent, and secure.
How Does Blockchain Work?
To understand how blockchain works, you must know some of the fundamentals of blockchain, such as blocks, peer-to-peer, mining, etc., work:
#Peer to Peer Transfers
Peer-to-peer (P2P) refers to the direct exchange of some asset (such as digital currency) between individual parties without the involvement of a central authority or a middleman. In a digital peer-to-peer network, each user is essentially an equal owner and contributor to the network. This type of network can be used for almost any type of information or file-sharing. Blockchain enables what P2P advocates: secure transfer of data without a middleman.
#Blocks
Blockchain technology stores transactional records in groups known as blocks. These blocks are connected to each other to form the ‘chain.’ This type of storage is commonly referred to as a ‘digital ledger.’ Every transaction in this ledger is authenticated and made secure via a combination of cryptography, consensus mechanism, and digital signatures. There are restrictions on how data can be added. Once stored, it is nearly impossible to change or delete it.
Continue reading: https://www.eastmojo.com/technology/2022/07/03/a-beginners-guide-to-blockchain-technology/
