clear

Folow us on social

BLOCKCHAIN TECHNOLOGY

Blockchain is a type of distributed ledger that keeps a permanent record. It works as a decentralized database made up of computers that belong to a p2p network (peer-to-peer). Each computer in the distributed network maintains an identical copy of the ledger to avoid hackers.

HOW IT WORKS

A full copy of a blockchain contains every transaction ever executed in it. With this information, one can see how much value each address had at any point in history.

Every block contains a hash of the previous block. This has the effect of creating a chain of blocks from the genesis to the current one. Each block comes after the previous one chronologically so as to preserve the previous block’s hash.

Each block is practically impossible to hack once it is part of the chain because every block after it would also have to be mined. These properties are what make double-spending of bitcoins very difficult. The blockchain is the main innovation of Bitcoin.

A user sends a transaction from his wallet to another party.

The requested transaction is issued to a p2p network consisting of computers known as nodes.

The requested transaction is issued to a p2p network consisting of computers known as nodes.

The network of nodes validates the transaction and the state of the user using known algorithms.

Each validated transaction is combined with other transactions to create a new data block for the general ledger.

Each validated transaction is combined with other transactions to create a new data block for the general ledger.

The block is added to the existing chain permanently and it is impossible to alter.

The transaction is completed successfully.

The transaction is completed successfully.

  • 36 1
  • 23 1
  • 24 1
  • 26 1
  • 38 2
  • 31 1