Concept of Blockchain Technology - How Does It Work?
There are lots of adverse effects of the Covad-19 Pandemic but the pandemic also spurred positive transformations in life sciences: the digitization of everything. This also exacerbated-existing concerns about how to handle data and track providence between partners in the value chain.
Additionally, social distancing and virtualization of work created new challenges in collecting, managing, and sharing data. Blockchain appears to be one of many solutions experts are keeping eye on. Blockchain seems to be the most prominent solution as it can play a significant role in supporting digitization.
Blockchain is a technology and not cryptocurrency that’s why even banks are ready to adopt it in their system but before going through all the adoption processes we all need to understand the concept of Blockchain technology.
What is a Blockchain?
A blockchain is referred to as a dispensed database that is shared among the nodes of a computer network. Being stored in the database, a blockchain keeps the information electronically in digital format. Basically, Blockchains are best known for their important role in cryptocurrency systems, like bitcoin, for balancing secure and decentralized record transactions. However, the variation under a blockchain is that it assures the fidelity and security of a record of data and executes trust without the requirement for a trusted third party.
Usually, a database structures its data into tables, whereas a blockchain, such as its name suggests, structures its data into chunks (blocks) that are powerful together. This data structure naturally makes an immutable timeline of data when performed in a decentralized behavior. Once a block is filled, it is set in stone and becomes a part of this timeline. So, each block in the chain is given a correct timestamp when it is added to the chain.
How does a Blockchain Work?
The aim of blockchain is to enable digital information to be stored and distributed, however, not edited. This is how a blockchain is a foundation for continualledgers or records of transactions that cannot be modified, deleted, or damaged. This is the reason blockchains are also known as distributed ledger technology (DLT).
The very was first proposed as a research project in 1991, where the blockchain concept predated its first widespread application in use: Bitcoin, in 2009. From the past years, the use of blockchains has exploded through the creation of several cryptocurrencies, decentralized finance (Defi) applications, non -fungible tokens (NFTs), and smart contacts.
Blockchain Decentralization
Blockchain gives access to the data held in the database to be laid out among several network nodes at multiple places. It not only builds monotony, however, also maintains the dedication of the data stored therein - In case someone tries to fix a record on an occasion of the database, whereas the other nodes would not be adjusted and this is how it prevents a bad actor from doing so.
If one user fiddles with Bitcoin’s ledger of transactions, where other nodes would meet each other and instantly pinpoint the node with the fault information. This system aids to set an exact and transparent order for events. This is how there will be no individual node within the network that can adapt the information held under it.
Transparency
Due to the decentralized behavior of Bitcoin’s blockchain, all transactions can be transparently viewed by either having a unique node or using blockchain explorers that enable anyone to view transactions happening live. Every node has its individual copy of the chain that’s got revised as new blocks are assured and are included. This indicates that if you want to track Bitcoinwherever it goes then you can.
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