Blockchain, the digital ledger, is a revolutionary technology that operates in a decentralized manner, enabling secure transactions without the need for intermediaries. This game-changing invention surfaced in 2008, initially used as the backbone of Bitcoin.
With its peer-to-peer network, blockchain eliminates the need for middlemen, offering increased security to users. It employs cryptography, making it nearly impossible for unauthorized entities to modify or tamper with stored data.
The crux of blockchain's security lies in cryptography, making it nearly impervious to any unauthorized modification or tampering of stored data.
"Trustless" and reliable, blockchain technology ensures that both parties involved in a transaction are valid without requiring any prior trust. It comes in three types - public, private, and hybrid blockchains.
In the world of blockchain, there exist two major types of networks - public and private. However, a hybrid blockchain is a third alternative that combines the best of both worlds.
To secure information, blockchain technology utilizes hashing and encryption, with SHA256 being the most widely used algorithm. Headers in proof of work comprise Previous Hash, Transaction Details, Nonce, and Hash Address of the Block.
Proof of Work in blockchain technology consists of headers that include essential details such as Previous Hash, Transaction Details, Nonce, and Hash Address of the Block.
The process of adding transactional details to the public ledger is mining, where a hash is created for each block transaction, making it difficult to falsify.
In the event of a private key loss, the user may face difficulties accessing their account or performing transactions.
Due to the limited transactions per node, blockchain may take a while to process multiple transactions and other tasks. However, once recorded, it is incredibly challenging to modify or add information to blockchain.
Once entered into the blockchain, altering or appending data becomes an arduous task.