What is Blockchain Technology? how Blockchain work

What is Blockchain Technology

hi everyone today I am giving you information about Blockchain technology.You may hear the word “blockchain technology” before, in reference to Bitcoin and other cryptocurrencies. For the uninitiated, the term might seem abstract with little real meaning on the surface. However, blockchain technology is a critical element of cryptocurrencies — without it, digital currencies like Bitcoin would not exist.

Blockchain Technology

Blockchain works on peer-to-peer technology.The blockchain is a very rapidly growing topic in recent times and it is also quite complex, blockchain technology has changed the way of digital transactions, as well as its impact on the daily business of many big industries.

More recently, 2 words have come into circulation. The first is bitcoin and the second blockchain is related to the second one, but the system of both of them is quite different from each other.

Bitcoin is a one-on-one internet-based currency, which has no real existence and is the most famous of all cryptocurrency, which is a decent currency which helps the user in money exchange without any third party. Record of all bitcoin transactions resides in a public ledger so that there is less transparency in the system and the chance of being trusted and the frog is reduced and all this requires an intermediary which verifies all the transactions and blockchain technology.

The most common benefits of blockchain are "transparency" which is also peer-to-peer transactions that are recorded in the public accounting whenever a person transfers bitcoin, the details of that deal go to the public accounter which includes the source, destination and date/timestamp is all information is called block.

The transaction validity is determined by collective computing power miners and it is confirmed that the transaction is valid or not. Miners have a lot of powerful computers so that bitcoin verifies the transaction resulting in miners getting some share.

All the data of the miner's transaction is checked by the hashing algorithm, this hashing algorithm solves heavy to heavy computer math and once a block solve has been verified and the transactions are verified, some parts of bitcoin at the end of the Rewards will be all those computer or miners It is said in which the participants took part in solving the block. And recorded in the verified block public accounter from which no other miners can be seen.

And this public ledger lives virtually everywhere with whom no one can tamper with. If you think that someone is tampering then the entire system will have to be waged together, which is an impossible task.

The need of blockchain technology

With the help of Peer-to-peer connectivity on the Internet, we can easily transfer digital assets from one place to another. Let us understand with an example of why the need of blockchain.

Suppose you have a bitcoin and you want to buy a TV from a store that accepts cryptocurrency but borrowed your bitcoin from one of your friends. Now tell me last month what will happen? This kind of blockchain was needed to prevent this kind of frog e can already send these bits and bytes to each other, what's the point of using a blockchain?

How blockchain technology work

Bitcoin uses cryptography authentication technology instead of third-party mediation between the two parties to make online transactions on the Internet. Every transaction here requires a digital signature and it is completely secure. Digitally signed transaction is sent to the public key on the receiver, digitally digitized using the Sender's Private Key in each transaction. The owner of the cryptocurrency needs to prove ownership of Private Key because only after that it can spend money.

Let see how blockchain technology work
Step 1
Now suppose that two people A and B want to work on the Internet.
What is Blockchain Technology? how Blockchain work
Both of them have a private key and a Public Key
What is Blockchain Technology? how Blockchain work

the main objective of the private and public key in this technology is to make a secure digital transaction. The combination of Private and Public Keys can be viewed as an agreement to create a very useful digital signature. In return, this digital signature provides strong control of ownership.
What is Blockchain Technology? how Blockchain work

Not only is this way to protect digital transactions. After this, the unit receiving the digital currency confirms the digital signature, thus using the Public Key of Sender in the transaction itself shows the Owners of Private Key. Every transaction is transmitted to every node in the bitcoin network and then recorded in public book keeping after verification. Prior to being registered with the public outlander, it is necessary for every transaction to be valid for validity. 
When cryptographic keys are added to the network, a super-useful form of digital interaction emerges. In the case of bitcoin, this process starts by announcing the beginning of A's Private Key, that you are sending Cryptocurrency and connecting it with B's Public Key.
What is Blockchain Technology? how Blockchain work

Step 2: protocol

A block consists of a digital signature, timestamp, and relevant information, then it is broadcast on all the nodes in the network.

What is Blockchain Technology? how Blockchain work

Networking service protocol

To achieve bitcoins and its smallest unit Satoshi, networking nodes are needed. Simultaneously, the process of creating and maintaining a full account of Bitcoin transactions is to solve the problems of work such as mathematical problems.
They basically vote with their CPU power. Express your agreement about new blocks or reject illegal blocks. When most miners come to the same solution, they add a new block to the chain. This is a block timestamp, and it can also have data or messages.

Chain of block

What is Blockchain Technology? how Blockchain work

Type, Amount, and Verification can vary for each blockchain. This is a case of Blockchain protocol or what is the rule and there is no valid transaction, or there is no legitimate creation of the new block. Any rules and incentives can be made when enough nodes arrive at an agreement on how the transaction should be verified.

What is Blockchain Technology? how Blockchain work

Other Uses of the blockchain technology

Blockchain technology can be used in all these areas -
  • In Information Technology and Data Management;
  • In government and organizational administration;
  • In education;
  • Blockchain the gaming system;
  • In the stock market and commodities;
  • In social networks;
  • In digital identity and authentication;
  • Blockchain in real estate;
  • In community service;
  • In-Network Infrastructure;
  • Media and market
  • In e-voting etc.

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