Blockchain has a complicated mechanism. But here we will explain the concept in a very simple way.
Blockchain is a way decentralizes the storage of data in such a way that it can’t be owned, manipulated, or controlled by a central user. Recently, a blockchain application goes beyond virtual money.
Blockchain technology can alter the way of privacy, ownership, collaboration, and uncertainty in the digital world. These technology stores transactional records, it is also known as the block of the public in different databases. The chain word refers to network-connected through peer-to-peer nodes. This type of storage is considered as a digital ledger.
The digital ledger is just like Google spreadsheets shared through Google drive in numerous computers. Where transactional records are sorted depending on the actual purchase. Here the fascination option is that anybody able to see the data, but unable to corrupt it. Blockchain is the technology that capable of supporting different applications associated with various industries like supply chain, manufacturing, finance, etc.
The blockchain system is a highly secured decentralized system. It has automation capacity.
Advantages of using Block chain technologies
With the emerging technology of blockchain you just need the mutual consensus of users. The procedure is simple, safe, and less time consuming, doing faster transaction
Blockchain technology has automation capacity and it is programmable. Generate systematic actions. Generate payment transactions automatically when the criteria of the payment triggers.
Now blockchain using digital signature features to make transaction procedures fraud-free. It ensures the transaction procedure is not to be corrupted, or alter the data of a person by the other users without a specific signature. So the emerging technology is offering a high level of security in the transactional process.
How does blockchain technology work?
Blockchain is a combination of three different technologies.
- Cryptographic keys
- A means of computing, to store the transactions and records of the network
- A peer-to-peer network containing a shared ledger
Cryptography keys have two different types of keys. Private Key and public key. These keys encourage successful transaction between two individuals. Each individual has these two keys, which they use to produce a secure digital identity reference. Cryptocurrency follows a digital signature and it used for the authority and control of the users.
The digital signature is associated with the peer-to-peer network. Now a large number of professionals use digital signatures as their authority in order to reach consensus transactions. When someone authorizes a deal, it is certified through mathematical verification that results in a secured and successful transaction between the two networks connected individuals. Blockchain users make cryptography keys to run different types of digital interactions over the peer-to-peer network.
One should aware of the rule that blockchain doesn’t include the identity of the individuals involved in the transaction. This block is then transmitted across all of the network’s nodes, and when the right individual uses his private key and matches it with the block, the transaction gets completed successfully