Basic Idea of Blockchain

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Basic Idea of Blockchain

UNDERSTAND WHAT IS BLOKCHAIN
Blockchain is simply a decentralized peer-to-peer distributed ledger technology. A block in a blockchain is a collection of data and its transaction is propagated by using a flooding protocol called gossip protocol. Once the transaction is validated it is included in a block and is passed on to the network. The blocks in a blockchain is linked cryptographically to other blocks in chronological order where the link is a hash pointer and thus makes a chain where each chain consists of its own unique data and the identity of the previous block. Hence even if the data in a particular block is disturbed or changed, the cryptographic data of the same passed on to the next block of the chain will remain the same and thus will break the chain. The first block in the blockchain is called genesis block.

UNDERSTAND THE FEATURES OF BLOCKCHAIN
  • Immutable and tamper-proof data store: Once any data written to blockchain, it is immutable ie this data cannot be manipulated.

  • Trust-free Consensus-based transactions: A consensus is a way of coming to an agreement. A decentralized system without a common consensus will fall into pieces in a second. It doesn’t even matter whether participants of the system trust each other particularly or do not trust at all but at the same, they need to agree on certain principles of functioning that would be common for all of them.

  • Distributed shared ledger: Consensually shared and synchronized data base spread across multiple sites, institutions or geographies.

  • Sequential Chain with Cryptographic hashing: Hashing is a method of cryptography that converts any form of data into a unique string of text. Block write each transaction into blocks and these blocks are cryptographically hashed and liked each other sequentially.

  • Decentralized peer-to-peer network: Data is distributed among participating nodes. Here all the node have same copy of the database. Node means any participating system or computer or any other device.

  • Decentralized Autonomous Organization: An organization distributed geographically and governed in a digital system facilitated by smart contracts (logic).

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