A blockchain is a distributed database that is shared across the nodes of a network. Similarly, a blockchain saves information electronically in digital format.
Blockchains are well recognized for their critical functions in cryptocurrency systems like Bitcoin to keep a secure and decentralized record of transactions.
The blockchain’s innovation is that it ensures the accuracy and security of a data record and generates trust without the requirement for a trusted third party.
The way data is arranged differs considerably between a standard database and a blockchain. A blockchain collects information in the form of groups known as blocks, which hold data sets. It is closed and connected to the previous block which forms a data chain known as the blockchain.
All additional information is contributed only after the newly added block is compiled into a newly formed block, which is subsequently added to the chain once completed.
A database normally organizes data into tables, but a blockchain organizes data into blocks that are linked together. This data structure generates an irreversible temporal line of data when implemented decentralized nature. When a block is finished, it is cast in stone and becomes part of this chronology. When a block is added to the chain, it gives a specific timestamp.
How Does It Work?
The main purpose of Blockchain is to enable digital information to be recorded and disseminated, but not modified. Similarly, A blockchain serves as the foundation for immutable ledgers, or records of transactions that cannot be changed, erased, or destroyed. In the same vein, blockchains are also known as DLT, DLT means distributed ledger technology.
The blockchain idea was initially suggested as a research project in 1991, and it predated its first popular application in use in 2009 known as Bitcoin. After that, the use of blockchains has risen tremendously, it is all because of the creation of development cryptocurrencies, decentralized finance (DeFi) apps, non-fungible tokens (NFTs), and smart contracts.
A blockchain enables data in a database to be spread across several network nodes which are located in various locations.
This not only increases redundancy but also assures the fidelity of the data stored in the database.
For Instance, if someone attempts to edit a record in the database, the other nodes are not impacted.
If a single user tampers with the Bitcoin transaction record, the other nodes will soon cross-reference each other and identify the node that has the wrong data. This strategy facilitates the creation of a precise and observable sequence of events. As a result, no one node in the network has the ability to change the information stored inside it.
As a result, information and history are irreversible. A record might be a list of transactions, but it is also feasible for a blockchain to hold additional information.
Is Blockchain Secure?
In numerous ways, blockchain technology delivers decentralized security and trust. New blocks are always added in a chronological and linear sequence. That is, they are always placed at the blockchain’s “end.”
It’s extremely difficult to modify the contents of a block once it’s been put to the end of the blockchain unless a majority of the network agrees to do so.
This is because each block contains its own hash, and the time stamp indicated before. To produce hash codes, a mathematical function turns digital data into a string of numbers and characters.
Due to the obvious scale of many cryptocurrency networks, the expense of accomplishing the feat would almost certainly be unattainable. This would be not only very costly but also likely futile. Such an action would not go unnoticed by network members, who would detect such substantial changes to the blockchain.
Pros and Cons of Blockchain
Sum Up :
We are going to cover this article in the second part. In the upcoming article, we are going to tell you the benefits & drawbacks of Blockchain.