How Blockchain Technology Works in Today
Though the term ‘Blockchain’ is not new to most of us today, I would like to define the term for the sake of all, especially for the beginners in the field. It has a great impact on today’s online transaction and is going to rise day by day to decentralize the technology.
However, a blockchain is a large diary of an online transaction that is almost impossible for anybody to forge and a combination of hash function, nonce, nodes, and blocks. It is going to be the most sophisticated online transaction that will ensure hundred percent secure transactions in the online world. For more specified and defined details, you can head over to clearinghouse blog to understand the term more clearly.
So, before going to tell you about how the blockchain technology works in today, I want to discuss few terms (maybe new to the beginners) I have already mentioned above to define ‘Blockchain.’ If you are a pro in this era, you can skip this below-defined term.
What is a Hash function?
The hash function is the combination of numbers and special characters that follows and is produced following the previous transaction online. Each hash function is separated and unique from another so that there arises no confusion to the transactions. As hash functions are different from each other, it is very difficult to change and forge any transaction.
After each hash functions there adds a specific number for every single record. It helps to end hash functions with two zeros at the end. This is called ‘Nonce.’ Due to the nonce, not only human beings but also computers will not make a fake copy of the transactions or change any transaction. It will take hundreds of thousands of hours to change any but in vain.
As you have already known and understood the term hash function and nonce, it is time to understand the term ‘Nodes.’
After completing a lot of online transactions, there may need to keep the records in a one-page spreadsheet. This spreadsheet may need a lot of computers so that they can store the records forever for the sake of smooth transactions. These computers are called Nodes. If the majority of the nodes have checked all the transactions and they are right, then the next transaction should be executed. Every node has a fresh copy of the digital spreadsheet.
To change a transaction, only one node is not enough to allow, but the majority of the nodes should allow the changes to happen.
So, as you can see we have already understood about most of the term regarding blockchain. Let’s see about a block and then blockchain finally.
Each spreadsheet is called a block, and all the combination of huge blocks creates a blockchain. Every computer or node has a copy of a completed blockchain. And after every ten minutes, the blockchain updates automatically in every computer under the same network at the same time.
Process of transaction
If someone wants to make an online transaction, he may need especially two separate things. They are a wallet and a secure private key without which the transaction will not take place. The wallet is normally an address. Like another username, the wallet address is the same but the private key is like a password combination of a string of numbers and special characters so that someone can not steal it.
Once a transaction is going to happen among the networks or nodes, every node checks the transaction whether it is valid or not. If it is valid and supported by other nodes, then the transaction between the sender and receiver may happen. Otherwise, it will be rejected if there is anything suspicious. So, it is much secured.
For each online transaction, it needs protocols, and a large set of rules are called protocols which are programmed into the block chain. You will be needed a distributed, peer-to-peer and at last a private safe database so that the transaction may happen.
You should remember one thing that for your online transaction or your digital money, you need a wallet which is also digital and it is just an address for the blockchain. A message is a must to complete the online transaction that is signed by the receiver’s and sender’s private key.
You need the approval of every node before making a transaction. The denial of the majority of nodes may not allow you to make the transaction successfully. A fraudulent transaction in the blockchain is almost impossible to make it happen.
Before making any transaction, you are capable of seeing the previous transaction with its hash function. Anyone can make an online transaction though they can maintain their pseudonymity because every transaction has to fulfill some major specification to happen such as the approval of the nodes at the same network. In this way, blockchain technology works today. Before ending the short article about the given title, I want to say that you have to read more and more about it online for your better understanding before starting.