Transaction Process in Blockchain
Blockchain is a combination of blocks which make a structure of chain. It provides a very secure way of transaction. Transaction process has been done between these blocks using some encryption methods. Blockchain technology is based on cryptography technique. Also, it uses some other encryption method to make it secure like hashing algorithm and digital signature. All these encrypted method prevent it from risk and make it safe.
Now, question is that how transaction is completed in blockchain. First thing let we know that it provide the transaction between cryptocurrencies. Also, it provide the platform for these digital currency. Cryptocurrencies are bitcoin, litecoin and ethereum etc. The most popular cryptocurrency is bitcoin. These all currencies are work on decentralized environment using peer-to-peer network. The transaction complete between these currencies via blocks.
Blockchain also a public ledger which records the information of blocks and transaction. Bitcoin use the timestamp transaction. To process any transaction wallet is a necessary things. This electronic wallet is freely provided. Now we will take a description to understand its process.
Whenever any transaction is start there is an address is generated for blocks. Blocks is used to store the transaction details. A hash algorithm is applied on every transaction. Hash algorithm is used to encrypt the transaction. This algorithm always work on two key factor. These are public and private key and allocated to sender. When sender make a transaction it will encrypt it using private key. So it will change the plain text information to cipher text.
Cipher text is encrypted text which is unreadable. Sender will send these information (public key and cipher text) to the receiver side. Public key is used to decrypt the information. Means cipher text convert to plain text which is in readable form. This is process of transaction. But what happen with this after sending the information and before reaching to the receiver. When sender apply the private key to the message/information it will encrypt that message. Then it will take a form of hash. Like this there are multiple hash is generated from different sender.
These hash are collected at a place and this is known as block. A hash is already applied on the message before coming it to blocks. After that when it transfer from one block to another block every time a new hash is applied on this. These process make it strongly secure. Now there are multiple blocks (stored the transaction details) make a form of chain. Public key is accessible to everyone and it is send by sender to relevant recipient. So receiver can use this for decryption and get the message send by the sender.