Blockchain Technology

Blockchain technology introduces a new type of network infrastructure that builds trust through distributed verifiability and consensus. It operates as a shared database spread across a vast peer-to-peer (P2P) network, eliminating any single point of failure. No single entity owns the blockchain network, and no one can alter the data stored within it. The network’s nodes collectively add new data to the blockchain through a process called distributed consensus. The blockchain stores information on a continuously growing chain. Once the network adds new data to the end of the chain, then it becomes permanent. Then No one can remove older data. This permanence allows blockchain technology to create an immutable ledger for tracking orders, payments, accounts, and other transactions.

How blockchain work in details

Firstly a user initiates a transaction. Then the network sends the transaction request to every node. Next each node verifies the transaction and its related details. Finally after verification, the network combines the transaction with others to create a new block of data.

Types of Blockchain Technology point by point

Public Blockchain: Anyone can join and participate in the consensus-making. Also It is a fully decentralised, secured, and immutable ledger system. For example :- Bitcoin, Ethereum.

Private Blockchain: A single organisation will have authority over the network. Such as Its advantages include faster output, power efficiency and offers more scalability. for example :- corda.

Consortium Blockchain: Anyone can join and initiate transactions. However only chosen nodes can validate transactions. Example :- Marcopolo by IBM Food Trust.

Key Terms Related With Blockchain

Node: Firstly a user connects their device to a blockchain network and becomes a node. first :- Full Node: Have a complete set of blockchains. They can initiate and verify it. It requires a large memory inside the device. second:- Partial Node: Have a header of all blockchain only.

Digital Wallet: Then Users store digital currency in a digital wallet, which contains one public key and one private key.

Private Key: Now The signer accesses the private key to generate a digital signature and attaches it to the message.

Public Key: The sender shares the public key with recipients, who use it to verify the signed message.

Hash: finally A hash gives each block a unique identity. A computerized algorithm detects the data in a block using its block height and header hash. This function locks the data for blockchain participants and ensures immutability.