Blockchain Technology: Know it All!

Blockchain technology is a user data protection technology which allows you to store your information of transactions and money transfers across peer to peer network. It stores data in the form of complex numeric information, with the help of algorithms and building block information system. By using this type of technology, participants can confirm transactions without the need for a central certifying authority. One can use the technology for fund transfers, settling trades, voting and many other uses.

To understand the structural experimentation, it’s important to know about the 3 sub-heads that are block, miners and nodes of blockchain that works for data storing and makes blockchain network securely transparent.

The Blocks: Each blockchain holds multiple blocks consisting data, nonce and hash (with a good no. of zeros) in it. When the first blockchain is formed, a nonce creates a cryptographic hash. The data then is considered in the block will remain forever unless it is mined.

The Miners: In a blockchain, with the help of data mining, miners create new blocks. Mining in a block is not easy task at all. Each block carries unique data (nonce and hash) with the reference of previous block in the chain. Special softwares are used by miners to solve and understand the algorithms for finding the nonce that will generate an acceptable hash. Therefore, when a block is mined, that structure is accepted by all the nodes in the network.

The Nodes: The decentralised technology of blockchain, works with a network of nodes connected together to maintain data of blockchain  for on-going the networking. The node network is algorithmatically are approved, verified data-protected and are continuously updated. The nodes are given with extraordinary alphanumeric recognised numeral that represents transactions.

But the question arises, how does a Blockchain works?

To understand this process, let us say someone requests a transaction. The needed transaction has to be done with a chain of computer network together, known as Nodes. The network of nodes validates the transaction of the user’s status using known algorithms. With the help of nodes, a verified transaction can involve cryptocurrency, contracts, records or other information. Once verified the transactions to create a new block of data for the ledger. The new block is then added to the existing block chain, in a way that is permanent and unalterable. Hence, the transaction is complete.

Blockchain’s applications are being done across multiple industries. The new technology holds diverse verges of security, rooted data protection and a norm for transparency. This allows users to put their faith in the blockchain’s transactional exchanges. Such as,

• Automotive transactions to manage fractional ownership in automobiles.
• Financial services could become faster and cheap settlements could shave billions of dollars from transactions cost while improving transparency.
• Using blockchain code in for voting, constitutes could cast votes via smartphones, tablet or computer, resulting in an immediate verified results.
• In healthcare sector, patients encrypted data could be shared with multiple providers without the risk of privacy out ruled.
• Not only keeping up with transparencies, the blockchain technology gives an access to trace frauds happening in finances.

With the evolvement of technology and innovation, blockchain is the future for sure.

By Kanika Vij