How blockchain works - the simple explanation
Blockchain is very popular nowadays, But What is a blockchain? Why the world is going behind the blockchain. Let us make a simple explanation about this stunning technology.
As the name implies, Blockchain is a chain of blocks that contains information or data.
Blockchain is initially developed by a group of engineers to make the document more secure or once the document is created it will not tamper like a notary attestation, But the project was a big failure until in 2009 Satoshi Nakamoto invented bitcoin with the help of Blockchain technology. The Blockchain is like a distributed ledger that is completely open to everyone but even it is easily accessible it doesn’t mean it is easily editable means once data is inserted into a blockchain it is very difficult to edit the information, let’s check hows its works
In the case of blockchain, each block contains 3 types of information which are data, the hash of the block, hash of the previous block
Types of information
- Data: The data stored inside the blockchain depend on which type of blockchain is used, for example in the case of blockchain we use it to store information like sender, Amount, receiver etc
- Hash: Hash can be compared like the fingerprint, Hash is unique and it identifies all of its content and hash is calculated after creating each block so it uses to detect the block needed to change
- Hash of the previous block: So by adding the previous hash it can be helpful to create a chain of the block, so by tampering any block will affect the entire system, This makes the Blockchain more secure
Proof of work
Nowadays computers are so fast so they can calculate all the hash and make the chain reactive again, So they use another mechanism for slows down the creation of chain which is called proof of work
Blockchain uses peer to peer network instead of a central entity, So when a new block is added it will send to all the members and each node will verify the new block so it’s very hard to tamper with the block because at least we need control over 50% of the entire network to change the data of blockchain