What Exactly Is Blockchain?
Blockchain is a hot topic nowadays but, a simple one doesn't know what is and how its works. Sometimes people attend seminars and intro but sadly, they get confused about the technology. Yes, it is complex and hard to understand by a simple person, but it's also very secure and trustworthy. I will try to educate you efficiently.
Blockchain basics
Blockchain Database Server contains data like other servers but it is different by its structure and location. Other servers like SQL are centralized and owned by some humans on the other hand block-chain is decentralized and not owned by any single party it's known as Distributed Ledger Technology (DLT). Traditional servers store data in tables and columns but here DATA will be stored in blocks. Records of the block can not be changed deleted or replaceable.
Blocks
Every chain have multiple blocks and each one has three primary elements:
- The data in the block
- A 32-bit whole number nonce. The nonce is randomly generated when a block is created, which then generates a hash
- The hash is a 256-bit number conjugal to the nonce. It starts with a huge number of zeroes When a block of a chain is created, a nonce generates the cryptographic hash. The data in the block is need to be signed and tied to the nonce and hash as long as it is mined.
Miners
A Miner creates a new block on the chain and
every block has its unique nonce and hash, also a reference of the previous block in that chain, mining on a large chain is not an easy task.
Miners use special software and tool to solve the complex math problem to find a nonce that generates an accepted hash. When miners found accepted hash they called it "golden nonce" and the created block added to the chain.
Not finished yet to make it permanent it needs remining, not just the block with the change but all the block that come after. It is impossible to manipulate blockchain technology.
When a block is mined and the change is accepted by all the other nodes on the network finally miner gets rewarded financially.
Nodes
Block-Chain technology is decentralized. No computer or any organization can own the chain because it's a distributed ledger via the nodes connected to the chain. Nodes contain the copies of the block-chain and keep the network working.
Every node has its copy and the network algorithmically approves any newly minded block for the chain. The complete chain is transparent and every action can be easily checked and viewed by any participant. Every participant has a unique id number that shows the transactions.