About The Submission
I decided to read up more on Blockchain technology and understand how it works
A blockchain is a series of fixed, unchangeable record of information linked to each other in the form of a list in a chronological sequence. Blockchain is a distributed ledger. This essentially means that the ledger is spread out over the entire network among all the peers and each peer possesses a copy of the entire ledger.
There are some crucial features of Blockchain Technology we should know about. All participants in the blockchain network communicate directly without the presence of a middle man. Every user holds a copy of the ledger to prevent any form of tampering. The security of the ledger is taken care of by cryptographic processes. Information in a blockchain can only be added at the end of the last block (i.e. in a chronological manner). All changes to the blockchain are checked against certain predefined criteria and added only after achieving consensus among all the participating nodes in the network. This is the most important feature that has been mentioned here because it is what allows decentralization to take place.
The process by which a blockchain functions is as mentioned below:
- A participant initiates a transaction and digitally signs it with the wallet’s private key.
- The transaction is propagated to the peers on the network to be validated via a consensus protocol.
- The transaction is considered confirmed and published onto the network after being inserted in a block once validated.
- The newly-created block is added to the ledger. All newly-generated blocks are linked to the block generated before them via a cryptographically generated hash pointer.
- Transactions are reconfirmed each time new blocks are generated.
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