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What is blockchain technology?

Blockchain technology is linked with bitcoins, investments or crypto money transactions. As the mane blockchain indicates a series of blocks ledger in a chain. In simple words, it is a technology which shares and stores the data in random blocks and transfer the data in a rotation. So that it cannot be hacked or stolen by anyone. An interesting thing about this technology is it stores all the sensitive data in the cluster of computers and not owned by any single entity. Blocks are to digital information and chain is the public database. The stored data in a blockchain can be seen and check by anyone but their activity is critically accountable at any time because it is public property, not a single person’s entity. It is a transparent, reliable and trustworthy technology for transactions. Blockchain technology also uses the method of decentralization because of that it is not dominated by any bank, corporation or single entity.   There are three different parts of blockchains made by digital information process: 

  1. Stores the Information
  2. Stores the data anonymously with codes 
  3. Distinguish the data from one blocks to other 

 Stores the Information

It stores the data about the purchase of the bitcoins from any site or source. This data includes time, date, and amount of the dollar at the time of purchase according to the site. 

 Stores the data anonymously with codes

It also precedes the information about the participants who participate in the transaction. Blocks store the information from your purchasing site and record your name along with that site. This information is stored anonymously with a signature code like a username.  

 Distinguish the data from one block to other

 Every block has a distinguished name and identity like a code name which makes it unique from other blocks. Even the same transactions by the same participants can also be distinguished with the help of block codes. 

Capacity of A block in the blockchain

A block can store and proceed a thousand transactions in one place, as one block stores 1 MB of data which can also depend on the transactions. 

Creator of blockchain technology 

Satoshi Nakamoto, a Japanese, the founder of bitcoins documented blockchain technology for the first time on whitepaper in 2008. Now, it is not just limited to bitcoins transactions, but it is utilized in financial transactions, e-commerce sites, charities, and non-profit organizations. 

Some Facts about blockchain technology 

  1. Blockchain transactions are free, they may cost no money for any service. Different third party organizations may charge for the services but the technology in itself charges nothing. 
  2. It can also be used in selling music apps, as a music app Soundcloud may charge for a song and the subscription charges are minor, so it is encoded in the blockchain technology and stores all the information about selling and buying.
  3. It is also be used in online selling and purchasing transactions like in the Ebooks selling and purchasing and other sale or purchase.   
  4. It can take up the complete charge of institutes of the financial world, and make then bankrupt, especially in stock exchange services. 

How blockchain technology works? 

A blockchain account works in four essential contexts: 

  1. Occurrence of transaction 
  2. Verification of transaction
  3. Information stored in a block
  4. Coding of block 

Occurrence of transaction 

The occurrence of a transaction should proceed. Without a transaction, blockchain technology cannot work. A purchase at an online store has many steps to proceed. After going through with these steps one can analyze his purchase and then finalize it.  

Verification of transaction

Blockchain technology has a spreading network at the global level. So in this widespread network, one should verify his transaction after making a purchase. 

Information stored in a block

When a purchasing process completes, a block stores all the information about the purchase i.e., amount, the signature of the purchaser, time and reference of the site from which purchase has completed. All this information is stored in a block individually. 

Coding of block 

Every block has a code for its identity, which is called hash. These codes make the process of identity unique and reliable. Once a block is hashed then it adds in the blockchain. 

Conclusion: 

Blockchain technology is an advanced and reliable technology for data storage regarding financial matters. It depends independently so it can be seen as a public entity. It can be used at an advanced level in any financial dealing related institute.  

 

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