Blockchain is a decentralised ledger of all transactions made across a peer-to-peer network. Unlike other databases, there is no one central authority running the blockchain. This, as a result, grants autonomy to users over their assets and transactions. The technology was largely responsible for the success of Bitcoin. Cryptocash is a new type of cryptocurrency.
It provides transparency, decentralisation and no one admin has access to all data. The technology is currently in its early stages of development.
You can’t avoid hearing about cryptocurrencies like Bitcoin, Ethereum, and Dogecoin, among others, even if you aren’t even interested in the financial sector. While cryptocurrencies have been all the rage in recent years, it is blockchain technology that has enabled them to flourish. Blockchain, which was founded in 2008 by a person — or a group of individuals — known as its Satoshi Nakamoto, was significantly responsible for the success of Bitcoin, possibly the most popular cryptocurrency today.
Cryptography is a peer-to-peer network that operates as a decentralised ledger for all transactions. The blockchain eliminates the need for a central power to supervise activities. This, as a result, grants autonomy to users over their assets and transactions.
What is blockchain?
One can compare blockchain to a database to expect equal it. A database is nothing more than a collection of data pertinent to the current window. For example, a hospital database may even have information on patients, personnel, medicine, inflow and outflow of patients, and drugs, among other things. A blockchain is now equivalent to a database in that it stores enormous amounts of data in categories. These groups are known as blocks, and these blocks are interconnected a data chain. As a reason, the term “blockchain” were developed.
The blockchain, unlike previous databases, is not owned by a central party. Instead, it was intended to be democratic in design when it was formed to back cryptocurrencies in 2008. It is controlled by people who use it.
How does it work?
It is a digital ledger of transactions at its heart. And all of this ledger’s transactions are mirrored and reflected throughout every computer system on the blockchain. This means that if a new transaction occurs somewhere on the blockchain, a record of it is recorded on all of the network’s ledgers. This is referred to as Distributed Ledger Technology (DLT).
One cycle on a blockchain would look like this:
• A transaction is started by a bitcoin user.
• The associated transaction data is then transferred over a peer-to-peer network of computers located all over the world.
• Algorithms are used to check the transaction’s legitimacy.
• After validating the transaction, the data is added to a block containing all prior transactions.
• The block is linked to other blocks, indicating that the transaction is complete.
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