Blockchain: How it is work
Blockchain is a technology that’s a great ledger of transaction. With the help of Blockchain any of transaction cannot be altered. Blockchain provide the platform for digital currency like Bitcoin, Litecoin and other cryptocurrency. Bitcoin Blockchain is preliminary designed to transact cryptocurrencies. It also help in public means anyone could join and view every transaction that ever had on the network.
How Blockchain is ledger of transaction. Actually Blockchain provide the platform for cryptocurrency. But cryptocurrency are encrypted. Some cryptocurrencies use hashing and other types of encryption based algorithms. It will help to secure its transaction. A platform is required to execute these algorithms i.e. Blockchain.
How does it Work?
For transaction of cryptocurrencies it works on peer-to-peer network. In this process it create a chain which include number of blocks. Each block has a digital signature. When we transfer our digital currency it apply a hashing algorithm in this. According to this every time a public key is generated in every blocks. Public key is an auto generated random number.
This public key is passed to every block and add at the end when a transaction is done. Recipient can verify it by verify the signature of chain. These signature prevents it from unauthorized access.
Mining is a process to generate a distributed system and enables the security. It use to secure every transaction which is processed in block. The main task of mining is to secure hash for every transaction. It create a chronological order for every Blockchain.
Block chain is cost effective in speed of transaction. It is highly efficient as the transaction is recorded. This transaction is visible to other parties with the distributed networks. Blockchain include tamper evident technology. It helps to protect from unauthorized access. As it provide the facility to view every transaction to anyone who joined it. Because it required heavy weight cryptography.
The characteristics of Bitcoin Blockchain leading many issues. Few of them efficiency, Confidentiality, Security and Trust. Its distributed system make it more secure.