What is Blockchain Technology ?

Firstly, let’s see what is blockchain technology?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.

Moreover, blockchain is a shared, immutable ledger for recording transactions, tracking assets and building trust.

Each block in the chain contains a number of transactions. And, Each block in the chain contains a number of transactions. Subsequently, a record of that transaction is added to every participant’s ledger.

Blockchain consists of three important concepts:

Blocks
Nodes
Miners

Blocks

Every chain consists of multiple blocks and each block has three basic elements:

The data in the block.
A 32-bit whole number called a nonce.
And, the hash is a 256-bit number wedded to the nonce.

When the first block of a chain is created, a nonce generates the cryptographic hash. The data in the block is considered signed and forever tied to the nonce and hash unless it is mined.

Nodes

One of the most important concepts in blockchain technology is decentralization. No one can own the chain. Instead, it is a distributed ledger via the nodes. Certainly, connected to the chain.

Nodes can be any kind of electronic device that maintains copies of the blockchain. Every node has its own copy of the blockchain.

Miners

In a blockchain every block has its own unique nonce and hash. But also, references the hash of the previous block in the chain. So, we can say that mining a block isn’t easy, especially on large chains.

In short, miners create new blocks on the chain through a process called mining.

Miners use special software to solve the incredibly complex math problem of finding a nonce that generates an accepted hash.

When a block is successfully mined, the change is accepted by all of the nodes on the network and the miner is rewarded financially.

How blockchain works?

Firstly, as each transaction occurs, it is recorded as a “block” of data.
Secondly, each block is connected to the ones before and after it.
Transactions are blocked together in an irreversible chain.

Why blockchain is important?

Business runs on information. The faster it’s received and the more accurate it is, the better.

It is ideal for delivering that information because it provides immediate, shared and completely transparent information.

Is Blockchain Secure?

A blockchain is a series of blocks that records data in hash functions so that the data cannot be changed. A block has been added to the end of the blockchain. Therefore, it is very difficult to go back and alter the contents of the block.

Most importantly, the key to blockchain’s security is that any changes made to the database are immediately sent to all users to create a secure, established record.

With copies of the data in all users’ hands, the overall database remains safe even if some users are hacked. That’s why blockchain is secure.