The blockchain is the new hot underlying technology that powers Bitcoin. In this article, we shall have a quick overview of what Blockchain means to Web Developers.
Let us begin our understanding of what Blockchains really mean.
What is a Blockchain?
The blockchain is defined as a ledger of facts. In this, several computers are assembled in a peer-to-peer network. Communication inside this network obeys cryptography. Members of this network are termed nodes.
Members of the Blockchain network exchange facts. P2P networks solve a difficult concept of reconciliation. Relational databases offer relational integrity.
An ordering of facts guarantees integrity over a P2P network. Blockchain implements proof-of-work consensus, using blocks.
Blocks order facts in a network of peers. When facts are grouped in blocks, only a single chain of it replicates in the entire network. Each preceding block refers to the previous one.
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The process of looking for Blocks is called Mining. Block Mining brings some form of money. Apparently, one who runs nodes in a blockchain is called “Miners”. It’s a voluntary process to turn a node into a miner node.
Money and Cryptocurrencies
Each miner node in a Blockchain tests thousands of random strings to form a new block. Reading facts is easy, but, storing facts in Blockchain comes with a price.
Each Blockchain has its own cryptocurrency. It is called Bitcoin in the Bitcoin network, and Ether in the Ethereum network. Blockchain generates its own money. Cryptocurrency can be readily converted into real money.
The blockchain is capable enough to execute programs. Few blockchains allow each fact with a mini-program. These programs are replicated together with facts. Contracts and databases are replicated across all the nodes.
Pre-programmed conditions when interfaced with the real world and broadcasted to everyone, it is termed as “Smart Contract.” It is technically enforceable. Eventually, Smart Contracts extend to Smart property and other Smart things.
What does it do?
A Blockchain securely shares and processes data among multiple networks. Information can be anything and requires a third-party to exchange.
[Related Page: Working of Blockchain Technology]
How does it work?
Blockchain mainly relies on three concepts:
- Peer-to-peer network
- Distributed Consensus
- Public-key Cryptography
It is the combination of these three concepts that enable a computing breakthrough.
Blockchain Technology is fascinating and exciting. It has enormous potential to replace all the intermediaries. Now, is the crucial time to invest in Blockchain.
The technology behind Blockchain employs Advanced Cryptography, Performance Optimization, and Custom Network Protocols.