How does Blockchain Technology Work?

HOW DOES BLOCKCHAIN TECHNOLOGY WORK?

Blockchain technology has gained increasing popularity with the growing crypto industry. However, the operational function of the blockchain technology remains unknown. Blockchain can be considered as a database that is almost impossible to be forged. They are four key points to understand how the blockchain technology works. The system being used by blockchain is decentralized without central authority control.

HASH IN BLOCKCHAIN

Every block of the blockchain will contain the hash or as a digital fingerprint or time-stamped to identify records uniquely. A hash is a string of numbers and alphabets and threads the string of texts. For instance, if there is any change in the string, then a completely new hash will be created. So if there is any record that needs to be changed, it will require the person or the computerized system to change it from the lastly generated hash to the first.

NONCE IN BLOCKCHAIN

Number added at the end of each record in blockchain is called as “Nonce”. In cryptography, Nonce considered as an arbitrary number that can only be used once. Apart from the hash, “Nonce’ could also be one of the key advantages of blockchain technology being protected from being forged and adds a variance. As for example, Data A’s hash is 654367f376q3483 and the Nonce should be chosen that the hash generated ends with zero such as 654367f376q3483000. Nonce was explained to be chosen so the hash could end with zeros and to edit the data kept in blockchain the person or the computers itself need to choose the Nonce use for each line since there is no formula to calculate nonce and it totally depends on a series of hit and trials, even computer system will take much time to figure the nonce quickly.

NODES IN BLOCKCHAIN

The blockchain is a decentralized database which allows its participants to check the records kept in blockchain technology at any time. The blockchain participants are considered as nodes in the technology and most transaction or activities that occur must be approved by the nodes. The node will receive the copy of blockchain records, as a proof of every transaction made. If the transaction request is approved by the node, then the transaction gets recorded in a block form. Since all of the nodes are visible, the original data with hash kept in the blockchain can be accessed freely. Altering the documents kept in blockchain has become almost impossible.

BLOCKS IN BLOCKCHAIN

Blocks are considered as the colossal spreadsheet or record book. Every node has a copy of blockchain, and if the block exceeds a certain number of approved transactions then the new block will be formed. Once the block is updated, the data kept in blockchain cannot be altered. The blockchain technology has its own features which will update the block automatically for every 10 minutes along with its network.