Blockchain in simple terms. Their Application and Features

blockchain

Blockchain in simple terms. Their Application and Features

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Meaning of Blockchain

What is a blockchain?

How does Blockchain work?

Is Blockchain secure from a hacker? All about blockchain security.

Application of Blockchain in modern worlds 

Meaning of Blockchain

A blockchain is the network of the transition connected in the software form. These blocks in the blockchain are the packet of information identical to each other if you change any block, then the information of all blocks are updated so that all identity that holds the block get all updates.

What is Blockchain?    

A blockchain is a public or private peer-to-peer network that records transactions in a tamper-evident, shared digital ledger. The ledger, distributed to all network members, permanently records the history of asset trades between peers in the network in a sequential chain of cryptographic hash-linked blocks.    

The word Blockchain comes from the fact that all confirmed and authenticated transaction blocks are linked together and chained from the initial block of the chain to the most recent block. Members of a blockchain network can only see relevant transactions, and the Blockchain operates as a single source of truth.

All data recorded on a blockchain are recorded numerically and have shared history accessible to all network participants. This eliminates the possibility of any fraudulent conduct or repetition of the transaction without recourse to third parties.

Consider the following scenario to comprehend Blockchain better: you’re looking for a way to send money to a friend who resides in another country. This option entails using third parties to complete the transaction, resulting in an additional fee.

This option entails using third parties to complete the transaction, and as a result, an additional amount of your money is removed as a transferring fee. 

Furthermore, in situations like these, you cannot guarantee the protection of your money because a hacker could disrupt the network and take your funds. In both circumstances, the client is the one who suffers.

 As the name suggests, a blockchain organizes data into chunks (blocks) that are put together. This data structure creates an irreversible data timeline when implemented in a decentralized fashion. A specific timestamp is given when each block is added to the chain.

How does Blockchain work?

A nonce is a 32-bit integer. It must start with many zeros (i.e. be extremely small). When a block is built, a random nonce is generated, generating a block header hash.

Member nodes in a blockchain network employ a consensus mechanism to agree on ledger content and cryptographic hashes and digital signatures to assure transaction integrity, rather than depending on a third party, such as a financial institution, to mediate transactions.    

Two terms that are used most in the Blockchain is the 

  • Miners 

Miners use a method called mining to add new blocks to the chain. Each block in a blockchain has its Nonce and hash, but which it also references hash of the previous block in the chain, which makes it difficult to mine a block, especially on large chains.   

Miners utilize specialized software to solve the exceedingly difficult math issue of generating an acceptable hash using a nonce. Since the nonce name is only 32 bits long and the hash is 256 bits long, there are about four billion noncash combinations to extract before finding the right one. Miners are believed to have discovered the “golden nuncio” when this happens and their block is added to the chain. 

  • Nodes  

as we know, this technology is decentralized, so it has no single main node in the network. Every node of the network is important, and no single node can operate the network. Instead, the nodes connected to the chain form a distributed ledger in the form of electronic chain equipment that saves copies of the Blockchain and keeps the network running is referred to as a node. these are present at the end of the network

Every node has its copy of the Blockchain, and for the chain to be updated, trusted, and confirmed, the network must algorithmically approve any newly mined block. Every action in the ledger can be easily reviewed and examined since blockchains are transparent. A unique alphanumeric identification number is assigned to each participant, used to track their transactions.

Is Blockchain secure from hackers? All about blockchain security.

Because blockchains have the feature of immutability, it is easier to identify data manipulation. Because every alteration in even one block can be recognized and handled smoothly, blockchains are considered tamper-proof. Hashes and blocks are the two most common mechanisms to detect tampering.

Each hash function associated with a block is unique, as previously stated. You can think of it as a block’s fingerprint. Any change in the data will cause the hash function to change. Because the hash function of one block is linked to the hash function of the following block, a hacker would have to change the hashes of all the blocks after that block, which is difficult to perform.   

A blockchain can spread the data in a database among several network nodes in different locations. This not only gives the database more redundancy, but it also assures that the data it contains is correct—if one user tampers with Bitcoin’s transaction record, all other nodes will cross-reference each other, making it simple to locate the node with the incorrect data. No one node in the network may change the data it contains in this way. This system assists in creating a precise and observable sequence of events.

So it is completely safe from the hacker because every node has the data, and nobody can change the block information in a single block. If a block is changed, the data is changed in all blocks.    

Application of Blockchain

Blockchain technology has already been embraced by Walmart, Pfizer, AIG, Siemens, Unilever, and a wave of other companies. The Food Trust blockchain, for example, was created by IBM to trace the path that food commodities take to reach their final destination.

these are the application of blockchain technology

  • As a Currency

Bitcoin and other cryptocurrencies are built on blockchain technology. The Federal Reserve manages the US currency. Under this central authority arrangement, a user’s data and currency are technically at the mercy of their bank or government. If a user’s bank is breached, the user’s personal information is made public.

If a client’s bank fails or lives in a country with an unstable government, the value of their currency may be jeopardized. In 2008, several bankrupt banks were bailed out with taxpayer funding. These are the issues that prompted the invention and growth of Bitcoin. 

  • can use blockchain technology in Banking and financial services

Banking is likely the industry with the most to gain from implementing Blockchain into its business operations. Financial institutions are only open during normal business hours, five days a week. Due to the huge amount of transactions that banks must handle, it may take one to three days to validate your deposit, even if you make it during business hours. On the other hand, Blockchain is always awake.

  • Chains of Distribution

Suppliers can utilize Blockchain to track the sources of materials they acquire, similar to the IBM Food Trust example. Companies would be able to check the validity of not only their products but also common labels like “Organic,” “Local,” and “Fair Trade.

  • Records of Real Estate

If you’ve ever visited your local Recorder’s Office, you know how inefficient and time-consuming the process of documenting property rights can be. A physical deed is used to present the operation to the employee ownership rights must be reconciled with the public index in a real estate dispute.

  • Medical health record

The Healthcare department can use this technology to get the record of their passentThese personal health records could be encrypted and saved on the Blockchain using a private key, ensuring that only certain people have access to them. 

Bottom lines

Blockchain technology is a completely new method to do business. They usher in a new generation of powerful and intelligent applications for registering and exchanging physical, virtual, tangible, and intangible assets. Blockchain technologies have the potential to fundamentally alter the way we organize our economic, social, political, and scientific activities due to the key concepts of cryptographic security, decentralized consensus, and a shared public ledger 

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