A blockchain is an anonymous online ledger that uses data structure to simplify the way we transact.
A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data that is managed by cluster of computers not owned by any single entity. A blockchain is a growing list of records, called blocks, which are linked using cryptography. By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet.
A blockchain carries no transaction cost. (An infrastructure cost yes, but no transaction cost.)
The verified block is added to a chain, which is stored across the net, creating not just a unique record, but a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances. That is virtually impossible.
How Does Blockchain Work?
The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt.
Is Blockchain Secure?
Blockchain technology accounts for the issues of security and trust in several ways.
After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. That’s because each block contains its own hash, along with the hash of the block before it. Hash codes are created by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well.
Photo Source:- 101 Blockchains
Advantages of Blockchain
Blockchain does not store any of its information in a central location. Instead, the blockchain is copied and spread across a network of computers.
2) Secure Transactions
Once a transaction is recorded, its authenticity must be verified by the blockchain network. Thousands or even millions of computers on the blockchain rush to confirm that the details of the purchase are correct. After a computer has validated the transaction, it is added to the blockchain in the form of a block.
3) Accuracy of the Chain
Transactions on the blockchain network are approved by a network of thousands or millions of computers. This removes almost all human involvement in the verification process, resulting in less human error and a more accurate record of information.
4) Private Transactions
Many blockchain networks operate as public databases, meaning that anyone with an internet connection can view a list of the network’s transaction history. Although users can access details about transactions, they cannot access identifying information about the users making those transactions.