Blockchain Technology? I know, most of you have heard about this and it has become very popular among people in a very short period of time. Though the meaning of this technology clearly defines from its name does anyone know what truly defines blockchain technology? What is the purpose of this technology? Why it is in trend in top named MNC and companies. Why we use it or how does it work. You might be wondering about these questions, but don't worry, you'll get all your questions about this technology answered as you reached the end of this post.
What is Blockchain Technology?
Blockchain technology is a methodology that is first adopted by the Bitcoin currency setup. It protects data or transactions to get modified in the network layer or in between the processing of transactions. It can also be defined as a decentralized and distributed system that records each detailed information of transactions. One cannot be able to modify or change the information stored through Blockchain technology. Sensitive sectors like digital payments, cybersecurity, and healthcare that consist of very crucial and sensitive information are using this technology as a very high level of data security. Blockchain is an immensely promising and reliable technology that helps in reducing the risks of data hacking and brings transparency in a scaleable way.
How Blockchain Technology Works ?
Blockchain workflow majorly consists of three most important concepts:- Blocks, Nodes, Miners.
Blocks
- Data presents in the block.
- A nonce is a 32-bit whole number that generated randomly whenever a block is created, which then generates a unique block hash.
- The hash is encrypted with a 256 bit number. It starts with a huge numbers of zeroes.
There are multiple blocks in every chain of Blockchain technology and each block contains three basic elements.
Miners
It creates new blocks on the existing chain through a process called mining.
Each block contains a unique hash along with the hash of a previous block if the block exists, makes the mining process more complicated, especially for large chains. Special software is used by miners to find a nonce that generates an accepted hash. There are roughly around 4 billion nonce-hash combinations that must be mined before finding out the right one.
If any change in a block occurs then, all the related blocks of the existing chain require a re-mining process that acquires time to computing large complex problems, and for this reason, only Blockchain technology is in high demand.
Nodes
Decentralization also defines this technology. No computer or company in the Blockchain process can own the chain. It is a distributed ledger connected through nodes to the chain. A node can be of any type of electronic device that safely maintains the copies of the ongoing blockchain process.
Every node contains its own copy of blockchain data and if any new block is found, the network approved it algorithmically to be updated and verified in the blockchain network. Each Blockchain participant could show the complete transaction to which they are connected through a unique alphanumeric identification number.
Industries uses Blockchain Technology
1) Cryptocurrency
Blockchain's most efficient and well-known use is in cryptocurrency. Cryptocurrency uses Blockchain Technology to act both as a cryptographic secured system and a public ledger so that participants can also see the details of the transaction, and hence making the online transaction always secured and reliable, and recorded.
2) Bitcoin
Blockchain technology was originally created for the Bitcoin industry, so this industry has a very long and deep relationship with Blockchain Technology. Concept off Blockchain Technology was very first adopted by Bitcoin to secure the transactions from the hacking of sensitive data information.
3) Finance & Healthcare
Though Blockchain has an uncountable amount of working industries. Healthcare and finance sectors can also use this technology to share patients confidential medical records with other healthcare professionals.
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