An understanding of Blockchain
The Blockchain is a public digital ledger and is a technique used to manage the record of the various transactions that take place using digital currency or cryptocurrency. This digital ledger is kept on the various networks of computer systems. Any computer system connected through this network on the condition that it satisfies certain computing requirements concerning capacity. The computers which are connected to the network are known as “full nodes” also called as network nodes or simply ‘nodes’.
All the connected computer systems are equally connected with one another and are rationally liable to execute the tasks in an individual to individual or peer to peer (P2P) networking style. Hence a central controlling computer like a server is not essential for managing the various computers or the network as a whole. Thus no agency or particular authority is responsible for recording or managing the transactions made using cryptocurrency resulting in the Blockchain having a decentralized ledger. The entire system is operated by using a code
The computers that are participating in the network are all interconnected and distributed evenly. The various nodes that are connected are updated uniformly with the same information at the time they are made. A review of the blockchain which is decentralized and evenly distributed public digital ledger can be found here.
Blockchain makes use of a cryptographic function SHA-256, which is also known as the “Hash Function”. The SHA-256 hash function is used inside the Bitcoin network system basically in two main forms:
– For Mining
– For the formation of Bitcoin Address
Blockchain performs as a chain of blocks, where each block contains a hash of the previous block which was generated up to the initial block of the Blockchain. All the transactions made in the blockchain are linked chronologically and recorded in the files names as ‘blocks’, in a sequential manner based on the time the transaction was executed. Each block has a definite size requirement of 1MB. The time for generating a particular block which is known as the block time is about 10 minutes.
A brand new block is created each time the previous block is filled up and the upcoming transactions generated are stored in a new block of the chain. Each block that is recently generated in the blockchain, contains the hash of the previously generated block. The newly produced block is connected to the last block formed, which results in the formation is blocks and thus called as BLOCKCHAIN.