What is the meaning of Blockchain? It is the name given to the network that links together different networks like the Internet, the mainframe computer in a corporation or in a group of computers forming one big “chain”. The major purpose of a chain is to guarantee that data that have been put into it cannot be destroyed. When you think about the Internet, we can see that everyone is connected to everyone else through this chain of computers. Blockchain has the same characteristics when you look at the Internet and how data is secured.
The word “blockchain” derives from the two Greek words “block” and “coinage”, which are to be used as money. A ledger is basically a spreadsheet where people keep track of their previous transactions, including who did what to whom and when. Blockchains are made up of several such ledgers or chains. In the past, Blockchains were maintained by everyone; there were no rules and no system to follow. However, as the technology evolved some protocols were developed that are used today.
The core technology behind the Blockchain is called “peer-to-peer lending” or “blockchain technology”. With this method of operation, multiple independent networks with similar goals are able to work together. Each of the groups have their own unique network with a group of “miners”. These miners are allowed to add their input to the ledger, based on a proof of authenticity created by the group. This adds value to the ledger and makes it more valuable over time.
When two parties both want to transact in the ledger, they both send transactions to the main block. The work of the miner is to add their transaction to the block, along with any other transactions that came during the past five to eight hours. If two transactions are already located in the block, then they are added to the chronological order. This means that if you sent a transaction earlier in the day, it would be in the same block as your transaction the following day. As long as the other transaction is not already there, the miner will add it to the ledger.
One of the most important points about the Blockchain is that it is a distributed ledger. It is made up of millions of independent nodes. A node is a computer program that works with the Blockchain protocol. There are various different types of nodes available for users.
The main factors that contribute to the efficiency of the Blockchain are how fast the transactions take place and how accurate the ledger is. This means that the ledger should be real time. Another important point about the Blockchain is that it has instant scalability. As soon as the need arises, the capability can be increased and adjusted.
As each new block is generated, a unique hash is required. This hash is what is used to reference that particular block in the future. The difficulty of finding this hash depends on how many users are using the Blockchain at the same time. Every user should have a unique address. Once a block is finished, the Blockchain consists of 12 blocks. These 12 blocks form the various chains that link each other.
The Blockchain is considered to be an open source software. This means that every node that contributes to the chain must be licensed. This helps the decentralization of the system, because only specific information needs to travel along the routes. The speed of the transactions is almost impossible and accurate.
In a typical wallet or a cold-storage wallet, you have a private key. The public key is what people use to access your wallet. With the Blockchain network, you have a “wallet” or virtual keypad that can only be accessed by the owners of the wallets. Anyone can create their own virtual wallet in the Blockchain and they can spend their funds. This is different from a traditional wallet because in the traditional wallet the transaction is encrypted so only the owner of the wallet can make the transaction.
With the Blockchain, the transaction goes through nodes, which are connected to different groups. Each group corresponds to a certain chain. A group cannot add a new block by itself since other groups need to approve the block before it can add it. Because of this, the average number of blocks per day is only two. Blockchain is considered to be one of the most secure systems because of its almost impossible attacks.
There are some problems with the Blockchain, such as with the Proof-of Capacity (PoC). Since there are many people with malicious intents that want to abuse the system, the Blockchain needed to develop an additional mechanism that would help prevent these hash manipulation attacks. The new hash function was based on an artificial intelligence called the RCTPA, or the Rapid Hash Function. It was supposed to reduce hash power and make theblockchain quite resilient against attackers.