You must have heard the name Blockchain, either while using the internet, from someone you know or from a close friend, because this name is seen or heard everywhere these days. So in today’s article, we will try to explain Blockchain to you in very simple words, so that you can know what Blockchain is, and what is its functioning.
What is Blockchain Technology?
Blockchain is a technology by which entries of transactions are saved, that is, it is a digital ledger. Whenever a digital transaction takes place, its entire information is saved in the form of a block (the first block is called Genesis). The data inside the block is encrypted using cryptography, which is called Hash.
This is a type of high security, by which the data is kept safe, with the increasing transactions the blocks also keep increasing, and then all these blocks are connected to each other. When all these blocks get connected to each other in a sequential manner, a chain of blocks is formed, which is called Blockchain.
There is no centralized system in Blockchain, that is, both buyer and seller can transact without any middleman i.e. (bank).
Having a decentralized ledger provides transparency, due to which a copy of the ledger reaches all the nodes i.e. computers connected to the network, and once an entry is made in the ledger, it is very difficult to change or tamper with it. Is.
How does blockchain work?
Blockchain Technology was created for Digital Currency i.e. Bitcoin, in which all the information related to Bitcoin transactions is kept by Public Ledger i.e. Blockchain.
Digital currency transactions are done directly without any middleman (bank), as soon as a coin is to be transferred from one node (computer), its information reaches all the nodes connected to the network, then it is sent to all the nodes. Nodes verify, and transactions are verified.
After that, the data of the verified transaction is encoded by cryptography technology and saved through blocks, and then many such blocks are combined in a sequential manner to form the Public Ledger i.e. Blockchain.
How secure is blockchain :
If we talk about security, then undoubtedly this technology is safe, in the way it was considered quite safe in the beginning, which was almost impossible to hack.
But technology is always changing for both the parties, there have been many reports of hackers developing new hacking technology to disrupt the blockchain, so security is a continuous process, which is also being developed in the blockchain. So that this technology can be used more in other areas also.
Advantage Of Blockchain Technology :
- This technology allows to verify the work without any 3rd party.
- Once the data is saved in it, it is difficult to make any changes or tampering with it.
- Cryptography Encoded technology is used to keep the Digital Ledger safe.
- In this, a copy of any transaction is with all the nodes connected in the network.
Disadvantage Of Blockchain Technology
- The system of this technology is of such a type, in which a lot of electricity is used, because it is a digital process, in which thousands of nodes i.e. computers work on real-time data.
- In this, transactions take place with the mutual consent of the nodes, in which the Government Organization has no role, due to which the possibility of fraud increases.
- Its system is quite complex due to which it becomes difficult for a common user to understand it.