How does Blockchain Works?
In todays topic we learn How does Blockchain Works?.The point of using a blockchain to let people trust each other, people who don’t trust one another share a valuable data in a secure tamperproof way. You can learn more about blockchain.
Block store information about transactions like date, time and amount for your recent purchase.
Block store information of participants in transactions. For example you purchase something from amazon would record your name.In amazon instead of using your actual name, your purchase is recorded without any identifying information using a unique digital signature like username.
Block use that which make them unique from another block.Each block store a unique code called a hash that allow us to tell it apart from any other block. Hashes are cryptographic codes created by special algorithms.
Blockchain consist of three important concept.
Every chain have these basic three elements which clearly defines How does Blockchain Works?
Block A block records some or all of the most recent Bitcoin transactions that have not yet entered any prior blocks. Thus, a block is like a page of a ledger or record book. Every chain contain multiple block and each block contain data. A 32 bit whole number called nounce. Nounce is genrerated randomly when a block is created.
Miners validate new transactions and record them on global ledger. A block is mined in every 10 min. Miner solve to complete a difficult mathamatical problems based on cryptographic hash algorithms. Miner didn’t spend a lot of resources and time to solve a problem and when a block is the transaction contained are considered confirmed, and the bitcoins concerned in transcation can be spend. Miner use a special software for finding a nonce that generate accepted hash because there are 32 bit nonce and 256 hash which makes four billion possible nonce and hash approx.
One of the important concept in Blockchain is decentralization. No one own the chain. Insted it is distributed through the nodes connected to chain. Nodes contain an electronic device that maintains copies of the blockchain and keeps the network functioning. Every node have a own copy of block for the chain to be updated trusted and verified.
I hope this article is helpful to you and now you have a better understanding of How does Blockchain Works?