Nowadays, different technologies are capturing the world economy and helping nations to grow in digital sectors. Blockchain Technology is one of the finest and latest one among them. This technology was initially developed for the purpose of Bitcoin transactions. Now it is one of the most masterpieces technology in the Financial sector. Let’s have a discussion about Blockchain Technology.
What is Blockchain Technology?
As from the name. Blockchain can be divided into two parts. One is “Block” and the other one is “Chain”. The concept of this technology is quite similar to its name but the meaning of Blockchain Technology is quite different. We can say, Blockchain is a database. It might be the chain of blocks. This chain of blocks stores the digital information of all kinds of transactions. This information is being stored in a public database. While storing the transaction information in those blocks the following three points are crucial to know:
- These blocks store the information about the transaction, the dollar amount, date and time of the transaction, etc.
- These blocks store information about both the parties between the transaction have been made.
- Each block stores different information compared to the other blocks. Each block has a unique code called “hash”. Hashes are the cryptographic algorithms that are assigned to each and every block of Blockchain technology.
How Does Blockchain Work?
Whenever a block stores new information, it is added to the Blockchain. But for being added in a Blockchain, that particular box must contain the following entities. Please have a look:
- A Block contains a transaction. Suppose you are purchasing a gift from Amazon. After several checkouts prompt, you have made the transaction and purchases the gift. That particular transaction is now stored it a particular block. These blocks must contain the transaction information along with the respective user details.
- The transaction which you have done earlier must be verified. Like a library, when new data is being entered it is always pending for verification. After the verification process, the data is stored in the library. Likewise, when a transaction is being entered in a block, it must be verified with the account information, purchase amount, and other details.
- After the successful verification of the transaction, it gets the green light and stored in the block. In a single block, your transaction amount, your digital signature, Amazon’s Digital Signature are being stored.
- Each block must have a unique hash. Each of them must be separated from other blocks having unique cryptographic algorithms. Once a block get hashed, it is now ready to be added in the Blockchain.
When a block is being added in a blockchain, it becomes publicly available, Anyone can view the information ever you. Embrace new technology.