Discerning BlockChain

BlockChain

BlockChain - A word which is behind the all time Bitcoin and cryptocurrency. It's very interesting to know that this technology have many other applications too. We are beginning to barely scratch the surface of it. Let's get started!

Key Features

• Decentralization

Blockchain is a Decentralized Technology, by design. Well, what's that? When something is controlled by a central authority where the power to make decision lies in the apex of the management. For instance, Banks - they are centralized as the decision making body is the Governor which should be publicly accepted.

There comes Decentralization, free from any central authority and giving the power to public.The peer to peer network, Torrent, for instance is a decentralized system, where the user has complete control. Today, most of us doesn't want anyone to Govern our ideas and more specifically us. So, that's the main reason why Decentralization is most preferred.

• Distributed Ledger.

Well, first of all what's that? Generally Ledger is a book which contains all your accounts related information from the journals and is posted as debits and credits. In short, it has everything required to prepare your financial statements.

Blockchains use distributed Ledger Technology (DLT) to store and access the data around. When something is stored on a Distributed Ledger, multiple copies of it are made across the network at the same time. Unlike traditional databases, distributed ledger do not have a central database or administration functionality.

When applied in a decentralized system like Blockchain, each user has a copy of the ledger and participates in the transaction verification. This gives Blockchain the property of Immutability and ensures security. Since, the data is distributed, there is no centralized version of the data for the hackers to corrupt. The data and the records are public and easily verifiable. This also eliminates single point of Failure.

• Security is the priority

BlockChain uses the concepts like Proof of work and Hash encryption to ensure immutability and security. As a computer science student mostly everyone among us knows what's Hashing. So, let's talk for "Proof of Work", PoW is a original consensus algorithm in a BlockChain network. This particular algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transactions on the network and get rewarded.

• Mining

Torrent's a decentralized peer-to-peer technology to share files. BlockChain or so called BlockTech uses a similar technology. The users who are involved in transactions have economic incentives. These users are called "Miners" who uses their computing resources to solve the cryptographic hashes and ensure reliability of the transaction and immutability. Every successful solution receives an economic reward.

• Time stamped

Blockchains, ideally, are just very sophisticated linked lists where each block is a repository that stores information pertaining to a transaction and also links to the previous block in the same transaction. These blocks are arranged in an order and are time-stamped during creation to ensure a fair record.

• Consensus Based

Here's the approach of decision making. A creative and dynamic way of reaching agreement between all members of the group. A transaction on BlocChain can only be exceuted when all the parties on the network approve it anonymously. t is however, subjected to alterations to suit various circumstances.

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