What is a blockchain?
Okay, so the world is getting to know the new technology every other day. But, out of the pile of thousand technologies only a few sticks and develops the most. And, the blockchain technology is one of those technologies who have a disruptive impact on the technology sector.
In recent years, you might have heard a lot about the blockchain technology, but, still, the real picture of the blockchain is quite foggy. For some people, blockchain technology is the base of cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. And, for some people, it’s just a face of technology which will pass very soon.
So, if being a newcomer, you are not sure which high tech explanation of blockchain you should believe in. Then, we have bit shorten and simplified the blockchain definition and it’s working criteria here so that you can get some clear brief idea about the blockchain technology.
Blockchain Technology – Well, the name of the technology itself is quite self-explanatory. The blockchain is the block of different elements linked together to form the chain. In blockchain technology, every block is very important and has equal value. Each block individually holds the 3 main elements of information. Each block has the data, a hash, and the previous block’s hash. And, everything in the blockchain technology revolves around the information present in the blocks.
How Does Blockchain Technology Work?
Okay, so working of blockchain depends upon the three main elements:
- Data – The data present in the blocks of the blockchain defines the functioning of the blockchain. All the features of the blockchain depend upon the information stored in the blocks. For example, in the blockchain of the Bitcoin, you will see the information related to the transaction of a person, different accounts and the amount of money transferred between two persons.
- Hash – The hash is like the unique identity number of the block. It’s like a pin number which is issued to one person only. Similarly, the hash is 64 characters alphanumeric code which is created when the blockchain is created. Every hash contains the information about the block and the information present in it. If the blockchain is modified, then the hash of the blockchain will be also automatically modified. That’s why the hash is very vital to make a change in the block.
- Previous block hash – The link to the previous hash block is the vital feature of the blockchain which keeps the whole system secure. In the block, the address of the previous block link hash is attached to the next block, so that relevancy in the blocks can be established to design the long sequence of the blockchain.
Blockchain Is A Web of Security
Well, so we know that each block contains data, hash and the hash of the previous hash. But, why it is considered as so secured system? Let’s taken an example:
Suppose if you have two blocks naming red block and yellow block, both containing their own set of information. So, if hackers try to attack the red block, then data of the next block will automatically changes which make it impossible for a hacker to open the next block.
Moreover, apart from this blockchain has two more security features called Proof-of-work and Smart Contracts. And, lastly, the blockchain data is saved according to the location. Unlike most data which is stored on servers and databases, blockchain uses a peer-to-peer network (P2P). A P2P is a type of network that allows anyone to join and the data on that network is distributed to each recipient.
So, when someone joins the network, then he will get the full copy of blockchain. And, when any modification made by one person, then everyone attached to the network will get the notification. If you have watched HBO channel’s series Silicon Valley, then this system works similar to the system created in the series.
Therefore, if you want to hack one block, you’ll have to hack more than 50% of the blocks on the network in order to pass along your information. Thus, in conclusion, blockchain is the most secured security system by far.