Before going to explain about BlockChain technologies, we understand , What is Block ? and What is Ledger?
"Block is
used to store the transaction along with their hash value and data."
Ledger
" Blockchain ledger is used to record the transactions in a blockchain"
What is Blockchain ?
A blockchain
is a distributed database of records or
public ledger of all transactions or digital events that have been executed and
shared among participating parties. Each transaction in the public ledger is
verified by consensus of a majority of the participants in the system. And,
once entered, information can never be erased.
Another definition:
A blockchain is a distributed database or ledger that shared among the nodes of a computer network. It stores information electrically in digital format.
One key difference between a typical database and a blockchain is how the data is structured, A blockchain collects information together in grouped, known as blocks, that hold set of information.
The
blockchain contains a certain and verifiable record of every single transaction
ever made. Bitcoin, the decentralized peer to peer digital currency, is the
most popular example that uses blockchain technology
Today the
blockchain is drastically changing existing technology frameworks of almost all
domains. According to prominent statistics websites, the blockchain market is
expected to grow $20 billion by 2025.
What is Bitcoin ?
Bitcoin
•
Most popular cryptocurrency
“Bitcoin: A
Peer-to-Peer Electronic Cash System”.
Why need Blockchain ?
Here are
some advantages of blockchain over existing systems of different domains.
Blockchain is:
- Decentralized
- Distributed
- Secure and Faster
- Transparent and Immutable
Blockchain Technology: How does it work?
Bitcoin uses cryptographic proof instead of the trust
in the third party for two willing parties to execute an online transaction
over the Internet. Each transaction is protected through a digital signature.
Each transaction is sent to the “public key” of the receiver digitally signed
using the “private key” of the sender.
In order to
spend money, owner of the cryptocurrency needs to prove the ownership of the
“private key”. The entity receiving the digital currency verifies the digital
signature –thus ownership of corresponding “private key”--on the transaction
using the “public key” of the sender.
Each transaction is broadcast to every node in the
Bitcoin network and is then recorded in a public ledger after verification.
Every single transaction needs to be verified for validity before it is
recorded in the public ledger.
Verifying node
needs to ensure two things before recording any transaction:
- Spender owns the cryptocurrency—digital signature verification on the transaction.
- Spender has sufficient cryptocurrency in his/her account: checking every transaction against spender’s account (“public key”) in the ledger to make sure that he/she has sufficient balance in his/her account.
- First 'A ' wants to send $100 to "B"
- For these one block created as for transaction need
- The block is broadcast to all parties or nodes in the network
- Those in the network approve the transaction is valid test
- The block then can be added to the chain, which provides an indelible and transparent record of transactions.
- Now the money $100 moves from A to B.
More Content about Blockchain Technology: see below content
Table of Contents
- 1. Blockchain Technologies Course Tutorials
- 2. Blockchain Structure, Data Distribution and validation
- 3. Applications of Blockchain Technology
- 4. Understanding Cryptocurrencies and Types
- 5. what is Bitcoin? how works? Transactions, Advantages and Disadvantages
- 6. What is Ethereum ? Components of Ethereum?
- 7. Free Online Test Models
0 Comments:
Post a Comment