Blockchains – Future Technology
Blockchains – Future Technology – Satoshi Nakamoto, pseudonym of the person or organization who invented Bitcoin and implemented the first blockchain database was surely a genius. The blockchain is basically a list of records, also called as Blocks which are linked with one another using advanced cryptography techniques to resist the modification of data. It is mainly managed by peer to peer networks.
By allowing peers to only read data but not copying or modifying it makes Blockchain a very effective and secure model. Example Bitcoin, It is used to store mainly transactional data without allowing anyone to alter the transaction data and is famously known as digital currency or Bitcoin.
How does it work?
There is a growing list of records called blocks. Each Block has a transactional data and, Hash pointer pointing to its adjacent block. The blocks are in turn connected to the next block forming a chain of blocks. It can store data and transactions between two parties securely and permanently. There is a peer to peer management system between the blocks. Once a block is created it cannot be altered. Now whenever a new block is created a peer block verifies the block and share the hash info. In order to alter this block, we will have to alter all the blocks in the chain accordingly which is not feasible. Blockchain network cannot be owned by a single person or an institution as each block is related to other blocks, so there is no administrator access or such thing. Validation takes place within the whole network so that not even a single peer can change its data, as other peers check and validate data of known peers. All the peers indirectly would be connected to the original genesis block. Now as some newly formed blocks could try to fool the algorithms for verification once created, These kinds of blocks are not included in the chain and often referred to as Orphan Block.
- No point of failure
- No single owner