CONCEPT OF BLOCKCHAIN
INTRODUCTION TO BLOCKCHAIN
It's used to create a common communication across industry
and technology. It's a technology that enables us to move a digital coin or
assets from one individual to another individual. Please note that digital
money or currency is not a blockchain.
Blockchain is based upon the basic postulates of the data
that entries are open publicly. Everyone can see and verify the transaction.
Entries are shared and have existences in any node on the network.
Problems that blockchain endeavor to solve.
- Money transfer
- Processing time
- Processing fees
Illustrating the blockchain concept with an example.
If person A wants to move or transfer money to B from India
to England, then this can usually be done through the third trusted party by
takes some processing fees and 3-4 days to move money from one person to
another person.
So what blockchain here to do?
1) Firstly, transfer money without a third
trusted the party.
2) Secondly, it transfers money
immediately to its destination.
3) Thirdly, to do cheaper than the third
trusted party what collect as there’s is no processing fees for money transfer.
we are going to link all transactions in the record.
Finally, C moves 2 dollars to D and links it in the chain. And this chain of
transactions is open to the public. This chain illustrates that everyone on
these networks knows that where is the money, how much money gets in
each one hand. Also, everyone can decide the transaction is valid or not
valid. For example – If A now tries to move 15 dollars to C. Everyone holds a
network that could see immediately that this is not a valid transaction because
of A start with B by 5 dollars in open chain and A doesn’t have 15 dollars and
this the transaction will not be part of a chain.
What is distributed open entries or connection?
Here blockchain going to take the authority of centralized
one and distributed it across the network. Everyone can hold a copy of the
ledger in the chain. And anyone else associates in-network can hold the chain
of events. Conclusively entries are distributed so no need for the centralized
place that retains the record. Here all the copies are to synchronized and all
the participant of ledger see same copies of the record in a network.
How do miners work in the blockchain?
- Miners are a special node that can hold the record of all entries.
- Miners are going to compete among themselves to take the transaction and solve the confusion.
- Approve the new transaction and able to put it into the record.
- Miners edit on its report and look for another transaction to work on, to get the bonus for next time.
- Miners published or relay the solution to the whole network.
- To find the unique keys, these are takings the previous transaction and lock with the new transaction.
- To find the key, these miners need extra computational energy because this search for a key is random.
- A miner is repeatedly selecting new keys until the first keys that match this kind of random issue.
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