What is Blockchain Technology? Step-by-step Guide For BeginnerMay 8, 2019
Data-driven industries will take the Blockchain-Route to enhance data usage, storage and issues like transparency, trust, cryptography and more. Blockchain is an alternative providing decentralization of data which otherwise was maintained by the central server. Older servers were limited both by storage capacity and use of it. The present method of using Cloud servers is both expensive and hard to scale.
Step-by-step Guide of Blockchains For Beginners.
The technology of blockchains has a digitally maintained ledger of incorruptible and difficult to renege on financial and economic transactions recorded on shared and closely monitored decentralized P to P networks. Blockchain technology works on a series of blocks of information hash-tagged together such that each block contains a hash-tag sequence of the previous block. The unique solution of each block or transaction is verified across all nodes in real-time to check for authenticity. Only then is the new block coupled to the chain and thus enable the irrefutable history of transactions across the decentralized network.
The blocks and chains are unalterable and immutable. Any attempt to change is immediately picked up by peer nodes and users of the system. It is a very difficult task to achieve since the blockchains are encrypted uniquely and any change in one block will be reflected in all subsequent blocks.
How Blockchain functions:
Blockchains guarantee record security since the math solution for each record is verifiable and the decentralized network is monitored by users every second. The distributed node system offers a verifiable solution across all interconnected nodes of a PC network of thousands of users. Further, the lack of a central monitoring system means the network is easily accessible. Originating with the success of the BitCoin the blockchain technology has gained popularity since it avoids duplication, fraudulent records and maintains a strict verified chronological order that is technically immutable. The ledgers are distributed and use cryptography to generate unique digital signatures, which contain the previous unit code and depend on trust between transacting parties to provide the key to the record. Many digital transactions, financial records, and cryptos like Ethereum, BitCoins etc mean the cash in digital form can have only one transacting owner and no record can be duplicated.
Basic Blockchain features:
- Chronological verifiable time-logs mean that the Blockchain technology ensures the creation of duplicates of the ledger across its multiple users on a peer-peer network.
- Immutable records which are time-stamped cannot be tampered with, erased or edited. Any changes to the record would be in conflict with copies of the users and thus it creates a secure transaction where more than half the users would have to change the record in the same manner and the same time.
- No intermediaries are present as it uses miner nodes competing to sole an algorithmic issue. The miner with the first solution broadcasts the encrypted answer to the peer network, which is multiple user-reviewed and approved, providing a completely private transaction or a block in full view of an ever-watching peer chain of blocks network. Since the previous and next blocks carry linking information a chain is born which is cryptographically unhackable. Trust, transparency and record-keeping are superb.
- Miners are ever watchful as they are benefitted by a fee or as in the case of Bitcoins addition to the number of coins held.
Besides transparency and simplicity of using the technology, it also offers excellent features like
- The database is absolute, true, decentralized and devoid of confusion.
- The entire database is rapidly updated in real-time with time-logs and stamps capturing system information as and when it occurs.
- Completely secure and private transactions are facilitated through user access being restricted on the peer-peer network.
The entire technology is young, promising, and evolving. Sensitive data protection like personal details of clients, claim records in insurance and such, needs a cautious approach.
Security features of blockchain technology:
Blockchains, as indicated above, make the transaction real-time and secure. It is set to eliminate any middleman or authority interfering in the transaction. Thus they provide transparency, security, decentralization and irrefutable immutable records of each transaction.
On a concluding note, blockchain technology is one of the most potential technologies today that is bound to impact most fields of our daily lives. The blockchain technology tutorial taught in the immersive course at Imarticus Learning can help you make a career in this emerging field where the demand is booming and payouts are generous and skill-based.