A Blockchain is a collection of blocks that are inter linked to each other in the form of a chain.
Blockchain - Defination
Blockchain is a distributed peer to peer network managed by individual nodes on the network and is used to process transactions on the network and store the transaction data on the central public distributed ledger , a copy of which is maintained by each node on the network.
Note It is a database which protects against data manipulation and revision. It is a chain of transactions that is why this is called Blockchain.
Blockchain is based on basic principles of the fact that the ledger is open and public so that everyone can see validate the transaction and because the ledger is distributed and essentially exist in many notes on the network will remove the dependency on the third party.
Blockchain – History
The invention of blockchain was done in 2008 by Satoshi Nakomoto who improvised the previously existing design by using hashcash like method to add new blocks to the existing blockchains without the need for authentication by a third party. This design was implemented in bitcoin network the following network as a core component of cryptocurrency.
Structure of the Blockchain
A blockchain is a collection of well ordered, interlinked chain that consists of transaction blocks. Each block in the blockchain has a unique hash value generated using cryptographic algorithms based on its contents and contains the hash value of the previous block and this iterative process makes all blocks in the blockchain interconnected. Blocks contain hashed batches of valid transactions made on the blockchain network, which are encoded into a Merkle tree. Using the connection between the blocks, the user can trace back to the original genesis block from the recently added block. As the blockchain is usually visualized a stack of blocks, the recently added block is called as “tip” or “top” and the distance between the original genesis block and the recently added block is called “height
Feature of the Blockchain
- Increased capacity.
- Better security.
- Faster settlement.
- Decentralized system.
Types of the Blockchain
Blockchains are majorly classified into three types namely
- Public blockchains: These have no access restrictions.
- Private blockchains: These are permissioned.
- Consortium blockchains: These are semi decentralized.
Application of Blockchain
The concept of blockchain is used in many applications like
- smart contracts.
- financial services.
- Digital Identity.
- video games.