BLOCKCHAIN
What is Blockchain?
It is comprised of two words “block” and “chain” but we can’t understand this technology in its physical sense.
It is the technology behind the Bitcoin Network. In simple words, we can say that block stands for data and chain stands for connection. The main aim of blockchain technology is to create a secure digital identity reference. Hence, it is a combination of interconnected data. It is specifically divided into two parts.
- Blocks store information about transaction like the amount of transaction, the date of the transaction and the merchant to whom the amount is paid.
- Blocks store information in the form of unique code called “hash” which helps you to differentiate between blocks. Hash is a cryptographic code created through an algorithm. For your two transactions which look identical hashes are the only way to differentiate between them.
A block is allowed to data of only one transaction but it has the ability to store data of thousands.
How does Blockchain technology work?
This can be understood by a simple case for instance if two people wish to transact over the internet each of them holds two keys
- Public key
- Private key
Identity is based on the combination of public and private keys. The combination of these keys is used to create an extremely useful Digital Signature. Digital Signature provides strong control of ownership
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