What is Block chain technology?
Hello friends today we discuss about what is block chain technology and how block chain works?
Lot of people search to know about the work of block chain.
The demand for cryptocurrencies has receded by 20% during 2018 when compared to the previous years. The reason is because of businesses are preferring to deploy traditional approaches for their earlier stage projects rather than going with Blockchain technology.
Crypto currency are a form of digital or virtual currency. Thanks for block chain network. Crypto Currencies are immune to counterfeiting they don't require a central authority and it also protected by a strong and complex encryption algorithms.
Why is Blockchain Popular?
Suppose you are transfer the money to your family or friends from your bank account. You would log in to online banking application and transfer the amount to the other person using their account number. When the transaction is done, your bank updates the transaction records. It seems simple enough, right?
These types of transaction can be tampered with very quickly. People who are familiar with this truth are often wary of using these types of transactions, hence the evolution of third-party payment applications in now a days.
Blockchain is the technology is capable to supporting various applications relate to multiple industries like finance, supply chain, manufacturing, etc., but Bitcoin is a currency that relies on Blockchain technology to be secure we also see by example suppose "Phil and Jake are best friends they go hotel for a dinner now they deside to pay by bitcoin so 2 friend Phil and Jake are send to each other 2-2 Bitcoins to pay the bills."
The transaction details between the two persons is permanently encrypted in this block chain. This record also hold the number of bitcoin each of the friends own. This block are links to each other as each of them take reference to the previous one for the number of bitcoin each friend own. This chain of record blocks is called a ledger and this ledger share to all the friends which access a public distributed ledger these forms basic of block chain technology. A hacker will not be able to alter the data in the block chain because:
(1) each user has a copy of the Ledger
(2) the data within the blocks are encrypted
by complex algorithms.
All of this is made possible with the help to block-chain technology. Block-chain can be described as:
(1) collection of records
(2) linked with each other
(3) strongly resistance to alterations
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(4) protected using cryptography
Cryptographic keys:
A peer-to-peer network containing a shared ledger.
Every user in bitcoin network has 2 keys
(1) public keys: this is a address that everyone in the network knows of is like your email address.
(2) private keys: is a unique address that only the user has knowledge of something like password.
Like example Phil sends 2 bitcoin to jack to their wallet address than is go to Phil private key with hashing encryption algorithms and it encrypted and digitally signed to jack public key to distribute and it decrypted to jack of 2 bitcoin on jack Wallet address.
Hash encryption:
Different Crypto Currencies use different hashing algorithm like bitcoin has SHA256 and Etherium Crypto has ETHASH algorithm. This type of transition and other similar transitions are taking place all around the world this transition are validated and it added block by block.
Process of solving complex mathematical problem is called as " proof-of-work". And adding a block in block-chain is called Mining.
Each block contain 3 elements:
(1) Data
(2) Hash of the block
(3) Hash of previous block
Data: is store inside the block depend upon the type of block chain. In bitcoin is stored the information of sender, receiver and amount.
Hash of the block: Block also has a hash you can compare hash to a fingerprint. It identify the block and over the contact is always unique. Hash is very useful if you want to take changes in block.
Hash of previous block this effectively create the chain of block. This technique may help the block chain to may secure.
Mining:
Numerous people around the world try to figure out the right hash value to meet a pre-determined condition using computational algorithms. The people who validate the block it call as minor’s. This minors solve the complex mathematical problems and valid the block and add to block-chain. Minor get 12.5 BTC as a reward to solve the complex mathematical problem . www.get-crypto.xyz
For more info
James Altucher Tobias van Schneider N1CE - The Crypto Experts Cryp Robin Staff God Of Crypto Trident Crypto Index Fund Crypto Shares Crypto Shares Crypto Lolo
