Most of us have become familiar with the term Blockchain or Blockchain Technology. While some think of it as being equal to bitcoin there are many who considers it to be unsafe and unsecured to be implemented on a large scale. Well, if you have such thoughts then maybe you still have a lot more to explore about blockchain.
Do you know the meaning of Blockchain?
Before I start explaining Blockchain meaning in details let us just try and understand the term. Block and chain together combined forms blockchain which basically means that it is a chain of blocks. What are this block and chain and how is it even related to technology? Well, a block can be defined as a collection of data and a chain is a database where this data is stored.
Blocks consist of various pieces of digital information. These blocks store information about the transactions. Each of the blocks can be distinguished from the other one very easily with the help of a unique code. The unique code is also known as a hash. There is varying kind of cryptographic codes which are created using special algorithms. Each of the blocks has a lot of storage space to store records of hundreds of transactions.
Working Process of Blockchain
The formation of this blockchain using different blocks follows a particular procedure. These days blockchain technology has become very trendy. As a result, a number of blockchain course have been introduced in the market. These blockchain experts are well versed with the process of Blockchain technology.
Every block which stores new data gets added to the blockchain. For a block to be created a transaction must occur. A particular transaction is combined with many others and stored in one single block. In the case of blockchain whenever a new transaction takes place it is checked by the network for its authenticity. The details of the transaction are checked and it is verified. The block is given the hash value of the one which has been added recently to the blockchain.
Once a particular block is added to a blockchain the information gets available to all those who are present in the blockchain and to those who are present in the blockchain including who and when did the transactions.
Common Advantages and Disadvantages of Blockchain
Let’s have a look at some of the pros and cons of blockchain:
- The verification process is computer operated.
- Third-party verifications are avoided.
- The process of decentralization makes it difficult for hackers to tamper it.
- The technology is transparent.
- Transactions are secure and private.
- Mining requires the use of certain technology which is somewhat expensive.
- The number of transactions is quite low every second
- There are chances of being hacked.
How is Blockchain considered to be secure?
Here are some reasons as to why blockchain can be considered as secure:
- The new blocks which are continuously added are stored in a linear order. That means every time a new block is added it gets appended at the end of the chain. The position of the block in a chain is termed as “height”
- Once a block is added to a blockchain it becomes very difficult to alter its contents. Every block contains its own hash along with the hash of the preceding block. Math function generates hash codes. These turn digital information into a string of numbers and letters. If that information is changed in any way that will cause the hash code to change as well.
- We can say blockchain is secured. Let us understand how. Imagine a hacker tries to edit a particular transaction. Once he does it the block’s hash is going to change. But the next block in the chain will have the same old hash value. Now, the hacker will have to update it as well. Once done, the same thing needs to be done to the next and then to the remaining blocks which are present. Changing so many blocks is not an easy task at all.
- To build trust the blockchain networks are implementing tests known as “consensus models” which require the users to prove themselves before they can participate in the network.
Is Blockchain Private?
Blockchain cannot be considered as a private network. Each and every computer which is connected to the network is known as a node. Whenever a new block is added to the network every node gets a copy of the blockchain that has been added recently. Every computer which is connected to the network gas a copy of the blockchain. That means that hundreds of copies of the same blockchain are present among all the nodes.
As the same information is present in multiple copies it is not possible to tamper any information. If a hacker would try to tamper anyone he will have to tamper all the copies. As the same piece of information is distributed among multiple nodes in a network it is also known as a “distributed ledger”.
But, it is not possible to get information about the users who are involved in the transactions. The information collected is restricted to the username and digital signature only. As a result, it gets difficult to trust them who are making the transactions. So, if there is no relevant information about the ones who are making the transactions it might actually be difficult to understand the security or privacy of the system.
Blockchain developer know a lot about the concepts of blockchain, the process of mining, and how they can be used for transactions. With this technology being accepted by businesses all over the world soon it is going to be the next big thing of this century. It will no longer be a question of legality in the coming days.