What is a Blockchain? The answer is that – we can say that it is no more than a distributed database. We can think of it as large network of computers where everyone can securely access data and can execute transactional code. All transactions are stored in blocks of data. We can also say that Blockchain gives us a trustworthy way to store data in scenarios where there is no trust.
We all have heard about cryptocurrencies like Bitcoins. A crypto currency is the one which only exists as digital currency. It does not hold any underlying value.
History of Blockchain
Concepts of Blockchain
Blockchain is a global singleton. We can consider Blockchain objects as global singleton instances. Blockchain is natively object-oriented where code and data resides together. However, objects are securely separated from each other.
How does Blockchain work:-
The transactions are sent to a large peer to peer network of computers. These are generally distributed all over the world. Each computer is called a node and they all have the copy of existing data. Then the transactions are executed and validated. This ensures that all nodes work as the same set of rules.
The core of any Blockchain resides in the concept of Hashing. Hashing is basically to execute a mathematical algorithm that creates a result with a given length regardless of the input given. Hash can be considered as digital fingerprints. Hashing is a one-way function, meaning the function will always return the same result given the same input, but you can never regenerate the input based on the result of the hashing algorithm.
A block in a Blockchain consists of data and its resulting hash. If we go ahead and change any data in the block, the hash will change and the block will be invalid.
Blockchains can be either public or private.
There are many emerging Blockchain implementations, but currently the major are the ones shown below:-
In this blog, we saw what Blockchain is and how does it works.
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