It is believed that after blockchain was invented in 2008, this blockchain technology was discovered to support this crypto-currency. It is a modern technology without which it is not possible to transact bitcoin or any other type of crypto-currency.
What is blockchain?
Just as the Internet was invented by connecting thousands of millions of computers, it has been named blockchain by adding a long chain of data blocks (data).Blockchain technology is an adjustment of three different technologies, including cryptography of the Internet, personal ‘key’ (private key), i.e. keeping information secret and controlling protocols.Blockchain is a technology that handles bitcoins and other crypto-currencies. In simple words, it is a digital ‘Public Ledger’, in which the record of each transaction is recorded.Blockchain does not require a reliable third party such as a bank for transactions.In this, the details of each transaction are recorded in the ledger after being verified by networked devices (mainly computer chains, called nodes).
How Does Blockchain Work?
Blockchain is believed to have the potential to drastically change the functioning of all industries. This can make the process more democratic, safe, transparent and efficient.Blockchain is a technology that creates a decentralized database of transactions on a secure and easily accessible network.Blockchain is a series of data blocks (data) that each block contains a set of transactions.These blocks are connected electronically to each other and are protected through encryption.This technology is safe and difficult to hack. That is why this technology is considered safe to prevent cyber crime and hacking.Under this, the details of each transaction are recorded in the ledger after being verified by chains of computers connected to the network, called nodes.
Key features of blockchain and How Does Blockchain Work
- Decentralization and transparency is the most important system of blockchain technology, due to which it is proving increasingly popular and effective.
- Blockchain is a technology designed as a program to record financial transactions.
- Not all records of a database are stored in a single computer, but are distributed across millions of computers.
- Whenever new records have to be recorded in it, it requires the approval of many computers.
- Blockchain can be easily controlled by a group of users who have permission to add information and can also modify the record of the same information.
- In this technique, the role of intermediaries like banks etc. is eliminated and person-to-person (P-to-P) direct contact is established.
- This not only reduces the time taken for transactions, but also reduces the chances of making mistakes.