The blockchain is an incredibly ingenious invention. It was invented by a person or a group known by the pseudonym “Santoshi Sakamoto”. It is understood as a growing list of records (called blocks). Hence, the name Blockchain is derived. Each record is linked to others using cryptography. Every successive block contains some information (“Cryptographic Hash”) about the previous block.
Working of Blockchain:
Each block contains 3 parts:
- DATA: The data the specific block contains.
- HASH: The hashcode of the block.
- PREVIOUS HASH: The hash of the previous block.
Each block has the same structure as above and are linked to each other. The first block in the chain can’t contain the hash of the previous block and hence is called “Genesis Block”.
What exactly are Hashes?
Hash codes are a combination of math functions that converts digital information to a string of numbers. After a block has been added to the end of the blockchain, you find it difficult to return and change the contents of the block. This could be due to
The beauty of Blockchain is that, the bigger it grows, the more difficult to tamper it gets. The Hash of a block is linked to the data it contains and the hash of the previous block. Hence, if you tamper with the data of a block, its hash will change. This will result in the next block storing the wrong hash and the chain will be broken. So, to effectively tamper with a block, one will have to change each block in the whole network which will become more and more difficult as the network grows bigger and bigger.
Another Layer of Security:
Moreover, the technology uses a P2P (Peer-to-Peer) network technology. In P2P, a copy of the data of the network is stored in each device connected to it rather than centrally. As a result, a single user does not have enough access over the network to practically be able to tamper the entire blockchain. Therefore, another layer of security is added to the technology. Therefore, the
Bitcoin: Making best use of blockchain
Blockchain entered the real application world in January 2009 through ‘Bitcoins’. Bitcoin is basically a type of digital currency that operates independently from a central bank. Bitcoin uses blockchain as the most basic as well as advanced technology in
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