Blockchain | How Blockchain Works | Secured Transaction
Everyone is curious about BLOCKCHAIN but they do not know what exactly it is. Our main goal is to make you understand about bloackchain. This blog will very helpful to you because we done some simplification while writing this.
BLOCKCHAIN = LIST OF BLOCK CONNECT WITH CHAIN
It is a way for one internet user to transfer a unique piece of digital property to another internet user, such that the transfer is guaranteed to be safe and secure.
Let’s start with an analogy of money transfer from one account to another.
When there is transaction of any amount from one account to another, there has to be a place where this information must be written down.
That place is called BLOCK
Block may contain some information as shown below:
- Who is transferring the amount (money) to whom?
- How much money is transferred?
- What is the transaction media?
- Digital signature
- Unique ID
HOW IT WORKS?
- Ledger: This record is referred to as “ledger” in the crypto currency world, and each data exchange is “transaction”. Every verified transaction is added to ledger as a “block”.
- One signed in and verified, the new transaction is added to the block chain and cannot be altered.
- Each transaction in the ledger have same data: who is transferring to whom?, how much is transferred, transaction media, digital signature, unique id.
- Distributed and Decentralized: There is a centre machine which can do anything with data. But in blockchain, there are many machines and all are connected with peer to peer with each other. And all machines are having the same ledger. Hence, the it is distributed and decentralized ledger.
“In next blog we will tell you “if blockchain is distributed, how the blockchain is secure?”