Blockchain Technology

The ubiquitous idea of modern day cryptographic currencies coined when Bitcoin was thrown in 2009. With Bitcoin, the world had access to a completely decentralized mediocre of give-and-take. This medium of give-and-take reliably transfers value from one entity to another in unfriendly, trust-less environment by solving a problem that earlier compelled centralized entities, such as financial banks, to arbiter value exchanges. Bitcoin, the stateless virtual currency, often sounds like something between fad and fraud. But the technology undergirding bitcoin and other cryptocurrencies—both the software protocols that make them work and a “distributed ledger” innovation known as the “blockchain”—may prove to be an enduring development that could significantly alter the way money changes hands around the world. 

Now the question arises – What is Blockchain? A blockchain is a public ledger of all bitcoin 


transactions that have ever been executed. A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. Blocks are linked to each other like a chain in proper linear, chronological order with every block containing a hash of the previous block. Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are. Meanwhile, blocks, are like individual bank statements. The full copy of the blockchain has records of every bitcoin transaction ever executed. It can thus provide insight about facts like how much value belonged to a particular address at any point in the past.

How does blockchain works?

This is a simple pictorial representation of blockchain working. Blocks are building cells or lifeline of blockchains. Each of them are connected to each other through hash keys in a chronically order. These hash keys are nothing but digital signature. When the private key of a user is matched with the public key of receiving blocks, it is added to the chain. These ensures the security and gives hard time to hackers and fraud makers.

Benefits of blockchain technology as specified by Forbes are:

• ·         As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable.
• ·         All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.
• ·         Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
• ·         Decentralization of the technology.

 Interested about Blockchain Check out the  BlockChain Application .