What is Blockchain Technology?

What is Blockchain Technology ?


What is Blockchain Technology?


Before going into the details of work principles, what is blockchain technology and other aspects of Blockchain; Let's see the origin of the technique. The conceptual framework behind Blockchain  Technology was first placed by one.

A group of researchers in 1991. The idea was initially to time-stamping of digital documents
After that, it will not be possible to support them. However, the idea became unutilized until it was mentioned again In his White Paper by Satoshi Nakamoto

"Bitcoin: A Peer-to-Peer Electronic Cash System".

It may be the first time in history that the invention of game-changing technology has become completely unknown. Satoshi Nakamoto; An unknown person group is considered to be behind the blockchain, which is bitcoin. Bitcoin first block channel came into existence and it was in 2009. In the next years, bitcoin became popular, and underlying technology became even more popular. So the lack of clarity and confusion between people starts from the beginning; A product and its associated vocabulary went viral before the technology behind it. And when Blockchain demonstrated his true potential, people were trying to connect it with the terminology of Bitcoin; The result was total misunderstanding and confusion. But this is another way; Start with Blockchain  Technology and then try to understand the bitcoin.

Why Blockchain


This is another question that should be addressed before going into the details of the technology. Technology to say is revolutionary; Obviously, it should be of great benefit to existing technologies. Here are some benefits of blockchain on the existing system of different domains. Blockchain is:

• Decentralized
• Distributed
• Safe and fast
• Transparent and irreversible


If we look at a data structure, data delivery, data validation (authentication of pieces of data in blockchains) and another related blockchain, the features can be well understood.

The Structure of Blockchain


According to IBM, Blockchain is a shared, distributed account that facilitates the process of recording and recording properties in the network. Property may be a tangible property such as property, home, vehicle or an intangible asset. Digital currency, intellectual property rights, etc. Actually, it stores data and records its activities in distributed environments. Let's look at its details.

This is a distributed Database or a public registry that details the assets and its movements transactions in a P2P network. Each transaction will be protected through Cryptography and later all transaction history will be grouped.

And stored in the form of blocks of data. The blocks are then linked with cryptography and are protected from modification. The entire process will create an unexpected, and irreversible record of transactions on the Network.

In addition, this block of records is copied to each participating Computer in the Network so everyone will have access to it. The biggest advantage of Blockchain is that it can store any kind of asset, description of its ownership, ownership history and the location of assets in the network. Whether it is digital currency bitcoin, or any other digital asset such as certificates, personal information, the title of IP, even the real world objects.

The powerful feature of Blockchain is that we can create a shared reality in non-trustworthy units. All these participating nodes in the network do not need to know each other or trust each other because each has the ability to monitor and verify for the series. Ironically, mutual distrust between the participant is something that keeps blockchain safe and verified.

What is Blockchain Technology?


Data Structure of Blockchain


The data in Blockchain is stored as a personal block, which is why it is called Blockchain. Like a linked list, blockchain is a collection of blocks connected together. So what really happens in the block? Each block in a blockchain will have the following fields.

What is Blockchain Technology?

  1. Data: stores data
  2. Previous Hash: stores the hash of the previous block
  3. Hash: Hash value for the current block, which can be used to refer to this block

As far as the user is concerned the data field is the most important thing. Actual data (transaction details, property details, etc.) are stored in this area. The previous hash will store the hash values of the previous block (consider this as a link to the previous block), the blocks are connected through this value.

What is Blockchain Technology?

Data Distribution in Blockchain

We have seen that blockchain has its own unique data storage structure, data distribution in the blockchain is also a different approach. They do not follow the widely adopted client-server model, rather than the peer-to-peer model. fellow employee

The peer data distribution approach gives the reason behind Blocken's unknowable nature; There is no central authority to control.

What is Blockchain Technology?

Contrary to the client-server model, the data network is stored in all participating nodes in the P2P network. The entire 'block' will be copied to all individual nodes and the same change will be updated in a particular block
All nodes

But here's the problem, data is stored in DB after the verification of the central authority in the client-server model; But there is no central authority in the P2P network, how does the authenticity of the data assure? The answer is the verification process of the blockchain network and the consensus mechanism

Blockchain Validation

As we have described above; The property and its transactions are stored in a block as linked blocks. Only valid transactions have been added to BlockChain. Technically speaking, blocking verification is simply a process of searching

Block hash In a blockchain, only all the verification is added to Blockchain after verification. Whenever there is a transaction in Blockchain, it will be added to the block; Sometimes a block per block and sometimes multiple transactions per block.

It depends on the size of the block and the nature of the network. When a transaction is added to the block, then it will have to go through the verification process before adding it to Blockchain as a valid block. The hash value for the block can be calculated using some algorithms (like Shi 256).

There are also some properties in the hash value. The main thing is that the hash value should be confrontational, i.e. should be the same hash value in two blocks. Since each block is represented using the hash value, it should be the same. The second asset is that the hash value should be irreversible.

This means that the block data could not be retrieved with the hash value.

Blockchain Validators

The blockchain verification nodes that participate in the process of block verification. Validities are rewarded for their efforts, (in fact they are rewarded for the computational power spent). Various blockchain protocols adopt different methods to select the validator from the available pool of nodes. Some methods are described below.

PoW (Proof of work)

In PoW, the mining challenge is open to everyone. All miners compete to add each other to the next block. The miner gets a definite reward that first finds the solution. In fact, the node with more computational power usually wins the race. Bitcoin uses POW algorithms.

POS (proof of stake)

This is a common choice of POW. Here, the lawmakers are selected on the basis of a fraction of their coins in the system. Nodes with a high number of coins have a greater chance of making selections with a smaller number of coins compared to the nodes. In POS the reward is in the form of transaction fees, new coins have not been made to pay the valid coin. At present, Blockchain, NFT and Pyrokone blockages use POS algorithms. Ethernet is also planning to move to this method until 2018.

Proof of Activity

PoA is a hybrid approach and it has been introduced to overcome some problems in POS and POW. In this method, mining starts with the PoW and process POS switch is done at some point. Currently, 'Desired' is the only coin that is using the variation of the evidence of the activity.


Proof of Elapsed Time

In this method, the network uses lottery functions to implement consensus. Lottery algorithms are used to find leaders from a set of nodes. So the legitimate ones are chosen randomly from the pool. Hyperlager uses south hall blockchain
POET method.

Proof of Burn

In this method, ambitious lawmakers increase their share in the system by sending their coins in an unforeseen location (thus burn the name). The lawmakers are randomly selected, but those who have a higher stake in the system, they are high
A chance to choose At that time the acquired stake decay and nodes have to burn more currency to increase their share.

The only coin to use the evidence of the burnt mechanism is slim. At this level, we can not say which method is more efficient. Each method has its advantages and disadvantages. Several other methods are also being introduced to achieve maximum productivity on the blockchain.

Blockchain So far

Initially, it was about the bitcoin; After this trend, many other cryptokuris also came to the market. While some of them found their fortune, some other cryptokuras followed. However, soon the blockchain technology got its real potential and spread to many other unexpected domains. Healthcare Industry, Enterprise Software Development, Banking, Insurance, Financial Domain etc.
Today BlockChain is changing the existing technology to a great extent Framework of almost all domains According to the major data websites, the blockchain market is expected to grow to $ 20 billion by 2024.

Banking and Payments

All banking and payment systems are now increasing towards Blockchain Technology. Like bitcoin cryptocurrency can control the payment system without any geological restriction. ABRA is an example of a bitcoin-based dispatch.

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