We are sure that you have heard this terminology but do you wonder what actually it is?
Let’s have a brief idea!
If you look keenly at the word Blockchain, it itself conveys its meaning. The blocked chains restrict any manipulation and alterations. But the question arises about manipulation and alterations of what? Any digital asset is set to secure by utilizing the concept of decentralization.
Another name for Blockchain Technology is Distributed Ledger Technology(DLT). It is based on the usage of technology. The information about digital assets that are stored in the form of blocks is allowed to be distributed but not to be edited. It is much like Google Docs, Google Slides that allows one to create it, to share it but not edit it. Surely, Blockchain is not that simple but the core idea is alike. It is based on the usage of technology.
How does blockchain work?
As we know, Blockchains are basically databases that are being shared. All partakers have complete access to the database and its history. But not a single party is allowed to make changes or own data. The main component that makes the Blockchain trust elevated is the core concept of decentralization.
To know the transaction process, let’s break it down into a few steps.
- A new transaction is processed and entered into the Blockchain network.
- The peer-to-peer computers scattered all across the globe are waiting for the transaction to proceed.
- The dispersed network starts solving the equations to ensure the authenticity of the transaction.
- When ensured, the transaction is then grouped up in the block.
- The blocks get lined up making the long chains of all the transactions being made.
- The transaction is complete.
The process when completed, the next query one can go through is what are the advantages of Blockchain?
Afvantages of Blockchain
- The highly secure system with no human involvement eliminates the errors and maximizes the authenticity.
- The decentralized system is nearly impossible to meddle with.
- All the transactions are admiringly safe and secure.
- A trustworthy alternative to banks.
For any queries, feel free to ask.