• Dhruv

Blockchain Basics: Understanding Blockchain

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Blockchain is a data storage chain, it stores every transaction that’s been done between two peers. As of now, you must be clear that bitcoin is a peer-to-peer payment system. Every payment that’s made between two peers generates a block.

The database is designed to store a particularly large amount of information, it’s publicly available to a large number of users always at the same time. All the information stored is gathered in a block every block has a certain limit to its storage for every block that reaches its capacity a new block is generated and chains with the previous block thus is called a blockchain. On the other hand, once a block is linked with another block forming a chain each block gets a permanent timestamp, no transaction on a block is reversible.

Blockchains are maintained on huge servers which require a lot of computing power, all the computing power is gathered by every user using bitcoin respectively. These people using bitcoin host a node through different locations which supports each block that is the data transmitted, a single node can never be changed, whereas if a node files an error it would take the next thousand nodes in the network as a reference to correct itself.

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Due to the decentralized nature of Bitcoin’s blockchain, all transactions are visible transparently viewed by an individual having his node or by using blockchain explorers that allow anyone to see transactions occurring live.

For example, wallets have been hacked in the past where those who held the Bitcoin lost everything. While the hacker could also be entirely anonymous, the Bitcoins that they extracted are easily traceable. If the Bitcoins that were stolen in a number of these hacks were to be moved or spent somewhere, it might be known.

Blockchain technology is secure as it comes it provides complete transparency and decentralized. The data stored on each node are stored chronologically. After a block has been added to the highest of the blockchain, it's extremely difficult to travel back and alter the contents of the block.

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