Every time you attempt to understand blockchain, it feels like such a daunting task. It happens. So, here is a blog to help you effortlessly learn the different components of blockchain technology.
The term “blockchain” got coined in 1991 when a group of researchers needed to design a way to timestamp digital documents not to be backdated or changed. Later, a person or a group going by “Satoshi Nakamoto” decided to develop that concept into a blockchain-based project. That is how the first cryptocurrency, Bitcoin, made its first appearance in 2008.
In short, blockchain technology works on the principles of decentralization, accountability, and security. This technique can radically enhance operational efficiency and reduce costs. Applications built on blockchain architecture will remain in demand and will have huge growth potential. The best time to get to know more on this fascinating subject is right now.
So let’s endeavour to learn how blockchain technology operates so efficiently. Perhaps, this will inspire you to consider making use of this developing technology in your business.
Let’s first understand the concept of blockchain technology. A blockchain is just a chain of blocks comprising data. It is just a newer type of database in which a group of data is stored accurately and securely in a peer-to-peer network. The entire network is decentralized in a blockchain. It comprises a combination of interconnected computers not connected to any central server. The digital information is distributed and not copied. It is called a distributed ledger that gives trust, transparency, and data security.
Blockchain architecture is already extensively used in the financial industry. Moreover, this technology helps build software development solutions for cryptocurrencies, smart contracts, digital notary, and record keeping.
Database vs. Blockchain Architecture
In the traditional architecture of the World Wide Web, the network is of the client-server type. IThe server stores all the necessary information in one place. It is easy to update as the server is a centralized database managed by various administrators having the requisite permissions.
In the distributed network of blockchain architecture, every participant within the network has the authority to update, approve and maintain the data entry process. The system is managed not just by separate individuals but by everybody within the blockchain network. Each member makes sure that the procedures and records are in proper order. It leads to security and data validity. Having such a system ensures that groups or entities that do not necessarily trust each other can reach a common consensus.
To summarise things, the blockchain is a decentralized, distributed ledger, private or public, of different kinds of transactions arranged into a peer-to-peer network. This network consists of many computers. Modification of Data isn’t possible without everybody’s consensus.
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