Questions Technology

What is blockchain and how does it work, in simple words?

4 Answers Airtract Airtract Date Sorting

Airtract

Rohini Dhatt

A bit of madness is key

We are living in an era of the cyber world, where we are witnessing advancements on a daily basis. One such massive development that revolutionized our way of living is the Internet. In the present scenario, we rely on the Internet for almost all our daily tasks, including the management of our finances.

Let us now discuss the concept of Blockchain.

What is Blockchain?

A Blockchain is a sheet (or a structure of data) that represents any financial data entry (a ledger), or several such financial transactions. All the transactions are signed digitally to ensure unnecessary tampering of the original data, i.e. to maintain authenticity. 

For example, Google Spreadsheet/MS Excel. This sheet is shared among a group of computers, people, where everyone possesses a copy of the concerned sheet. The sheet is accessible to every member, but no one can edit the sheet.

Let us understand how a Blockchain actually works;

Working of a Blockchain

Blockchain consists of several technologies which are mainly as 

  • Private Key Cryptography

  • A connected network (distributed network) where the financial ledger is distributed

  • The incentive for network transactions, record management, and security.

Let us highlight them in detail.

  • Cryptographic Keys

Suppose two individuals wish to transact via the internet. Each of them has access to a public key and a private key. The combination of the public key and the private key generates the digital signature, which ensures strong ownership over the transaction.

  • Distributed Network

In simple words, this is the network where the financial ledger is distributed among various clients. Along with the digital signatures, this network plays an important role in maintaining the overall security of the whole transaction process.

  • Network Incentives

This is based upon the principle of Mining. Each transaction is recorded with a timestamp to ensure its authenticity.

Flow of Transaction

  • A node initiates a transaction and then digitally signs it using the private key.

  • A transaction process is initiated (flooded), with the help of a flooding protocol known as Gossip Protocol. After this, validation from more than one node is required to incorporate the transaction into the block, which is then propagated into the connected network.

  • All newly generated blocks become a part of the ledger, and the blocks get connected cryptographically in the form of a chain.

  • For every transaction, a new block is created after proper validation from the respective nodes and is recorded with a time stamp.

    Read more:  What companies are investing in blockchain technology?

    Airtract Malin Heren -

    In general, I believe that it is very important to be aware of various technologies, especially when it comes to cryptocurrencies, NFT technologies or blockchain technologies. You can apply this knowledge and start running your own online business. In addition, there are solutions such as <a href="https://www.bhero.com/launchpad">Elrond Network launchpad</a> that can be integrated to run your own business.

    Vote0 Date:20-07-2022
    Airtract

    emma brown

    An avid reader and writer

    When the Internet was launched, the primary objective was to make it as free as possible. Decentralization was at the heart of this innovation. The father of WWW, Tim Berners Lee in a recent interview expressed his disappointment over how the web has become a commodity and is constantly abused.

    Now imagine a technology that provides you decentralization and globalization in their purest form. A system that is immutable and censorship-resistant.

    This is what Blockchain is. Technically, blockchain involves Distributed Ledger Technology that makes platforms secured and transparent. For anyone to change/update anything on the ledger, all the previous blocks need to be updated, which is public. As a cryptographic technology, Blockchain offers high resistance to threats while at the same time helping traceability and trackability possible.

    It integrates well with almost every supply chain we know of and has become the fastest-growing technology ever.

    Airtract

    Dora Vertol

    Tagline Not available

    Hello, I use only a trusted crypto broker, whose services I have been using for a long time and all my long-term investments are a very good plus for me. The managers of this service will always help you with the choice of cryptocurrency and tell you how best to make money, you will find more information on the site. I think this is exactly what you need, especially if you are a beginner.

    Airtract

    Daniel Brian

    Tagline Not available

    Hello, this technology is changing the way data is stored, transmitted and even produced. Blockchain, in fact, is nothing more than a new way of structuring information registers. There are several types of networks built on the blockchain model. Every computer or device that joins a blockchain network receives a file with all the information ever created on that blockchain and adheres to a simple set of rules known as a protocol. To understand it in more detail, you can read about it in crypto news. There is an excellent CoinsPaid Media platform for this.

    Technology Courses

    Airtract FLASH SALE

    Complete Outlier Detection Algorithms A-Z: In Data...

    Saurav Singla

    0 (0) New Course

    Welcome to the course "Complete Outlier Detection Algorithms A-Z: In Data Science". This is the most comprehensive, yet straight-forward, course for the outlier detection! Are you Data Scientist...

    1 hrs 40.12 mins 0 Students Enrolled 18 Lectures

    $19

    71.64 % off $67

    $19

    Buy Now
    Airtract FLASH SALE

    Spark AR Studio for Beginners: Create Your Own Fil...

    Artem Dovgenko

    0 (0) New Course

    Start creating your filters professionally with Spark AR Studio! If you are looking for a filter creating an application that will allow you to create filters however you want them, Spark AR Studi...

    1 hrs 10.58 mins 1 Students Enrolled 28 Lectures

    $19

    61.22 % off $49

    $19

    Buy Now
    View All
    Item added successfully. Go to cart for checkout.
    Accept Reject