Blockchain Technology, If you are a person who following banking, investment or cryptocurrency, you will most probably be familiar with the word which is the record-keeping technology behind bitcoin. And there’s a good chance that it only makes so much sense. But a lot of us are still curious about what is a blockchain what does it do? So here I’ll explain what is a blockchain all about
What is BlockChain?
Just so you know when we say the word “block” and “chain”, we are actually referring to the digital information which is known as the block is stored in a public database which is known as the chain
“Block” on the blockchain are made up of digital pieces of information specifically, they have three parts
1.Block Store Information About Transactions.
for example, the date, time, and the amount of your most recent purchase on let say Amazon, e-bay or even Lazada.
2.Block Store Information About Who Is Participating In Transactions.
A block for your splurge purchase from Amazon would record your name along with Amazon.com, Inc. Instead of using your actual name, your purchase is recorded by using a unique “digital signature” which sort of like a username
3. Block Store Information That Distinguishes Them From Other Blocks.
Much like you and I have to name from other blocks. Much like you and I have names to distinguish us from one another, each block stores a unique code called a “hash” that allows us to tell it apart from every other block. Let’s say you made your splurge purchase on Lazada, but while it’s transit, you decide you just cannot resist and need a second one. Even though the details of your new transaction would look identical to your earlier purchase, we can still tell the blocks apart because of their unique codes.
So how does blockchain work?
1. A Transaction Must Occur.
For example, after purchasing a product from an online platform like Amazon or Lazada. Through hastily clicking through multiple checkouts prompts, you go against your better judgment and made a purchase.
2. That Transaction Must Be Verified.
After making a purchase, your transaction must be verified. With other public records of information, like Wikipedia, or your local library, there’s someone in charge of vetting new data entries. With blockchain, however, that job is left up to a network of computers. These networks often consist of thousands of computers spread across the globe.
When you make a purchase from the e-commerce platform, that network of computer rushes to check that your transaction happened in the way you said it did. They confirm the details of the purchase including the transaction’s time, the total amount of money spend and participants
3. That Transaction Must Be Stored In A Block
After your transaction has been verified as accurate, it gets the green light. The transaction’s total amount of money, your digital signature, and the platform digital signature are all stored in a block. There, the transaction will likely join hundreds or thousands, of others like it.
4.That Block Must Be Given A Hash.
Not like an angel earning its wings, once all of a block’s transaction has been verified, it must be given a unique, identifying code called a hash, the block is also given the hash of the most recent block added to the blockchain. Once hashed, the block can be added to the blockchain.
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