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Saturday, 15 March 2025

What is Block Chain Technology? -Definition, How it works, All You Need to Know

BlockChain: is the simplest Terms, a time-stamped series of immutable records of data that is managed by a cluster of computers not owned by any single entity.
Each of these block of data(i.e block|) is secured and bound to each  other using Cryptographic principles(i.e. Chain)

A transaction is initiated by a person by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the net. The verified block is added to a chain, which is stored across the net, having  a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances. That is very virtually impossible and it is highly secured system. what is so special about blockchain is that the blockchain network has no central authority- it is shared and immutable ledger, the information in it is Open  for anyone and everyone  to see. Hence, anything that is built on the blockchain is by its very nature transparent and everyone involved is accountable for their action.

Therefore, blockchain can be viewed as a distributed peer to peer ledger consisting of an order set of connected and replicated blocks of data. As each  transaction occurs, it is put into a block. Each block is connected to the one before  and after it(chained). Each block is added to the next in an irreversible chain and transactions are blocked together-hence it is called 'blockchain' Once these blocks are collected in chain, they cannot be changed or deleted by a single actor.

Block Chain Technology
Block Chain Technology

  How Blockchain works

The following are the basic principles that underpin the working of blockchain Technology:


Distributed ledger or database


Blockchain refers to a distributed ledger   protocol(DLP), whereby transactions are coded into blocks and these blocks are     connected to each other in the form of chains by a network of computers in the entire blockchain communication system. Each block in the chain has access to entire database and the full udit trial of all transactions. The data stored within each ledger is not controlled by any single party. Each node can verify the records of all transactions across the network without needing a central node or trusted 3rd party.


Blockchain Consensus and Validation


Blockchain consensus Processes are composed of participants who perform transactions and peer-to-peer network nodes, which are designated to validate those transactions. A consensus function is implemented to verify transactions to preserve the immutability of the chain (so that transactions cannot be changed).
Transactions are grouped into blocks that are submitted to a network of validating nodes. Every time a new block is validated, it is broadcasted to the network and added on top of the blockchain. Then,
each node verifies the new block and synchronizes its local and real-time synchronized copy of the database, adding a new block to the chain.
     


Direct node to node communication:

Each node communicates with other nodes in the network where each ledger stores the data and forwards it to all other connected nodes.


Accessibility within the network

Each transaction and associated data are visible to all parties within the network. Transaction occur between unique blockchain addresses.

Immutability  

All transactions, Once entered in to the ledger, cannot be changed as the data is replicated across all nodes in the network . Data stored within the blockchain is permanent, chronologically ordered and available to all nodes. This differs somewhat from the traditional mode where data can be changed and re-ordered.

Computational Logic

Transactions can be programmed to be automatically triggered between nodes via the use of secure algorithm without any control from a central node.

Characteristics of Blockchain

Blockchains are effective digital storage network that is totally independent of the data contained within each block and demonstrates the following key characteristics:

Immutable

Once a transaction has been added to the blockchain it cannot be altered.

Time stamped:

All  records are date and time stamped thereby, ensuring a built-in audit trial is maintained for all additional to the network

Append only: 

Data can only be added to the blockchain in time-ordered sequential order.

Secure: 
All additional to the blockchain are governed via secure algorithm That use public key encryption, thereby, reducing the risk of data corruption.


Open and Transparent:

The distributed ledger nature of the blockchain means that all nodes in the network share the same master records.These characteristics make the blockchain more accurate  and consistent across the entire  network.

  

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