Blockchain technology is based on a distributed ledger without the need of a centralized control. More specifically, a blockchain is a chronological database of transactions recorded by a network of computers. It is a data structure composed with elements such as data redundancy, the checking before validation of transactions, the recording of transactions in sequential order, and transactions built upon on public key cryptography and scripting languages.
Each blockchain is encrypted and organized into smaller data sets known as blocks. Each of these blocks contain information regarding all transactions made within the time-frame of their creation, as well as references to the previous block on chain and the complex mathematical puzzles which are used to validate the data associated with that block. Each computer recording the network keeps their own copy of the ledger, basically the chain of all individual blocks - they will periodically synchronize to maintain a shared, common database.
To ensure that only legitimate transactions are recorded, the network will only validate new transactions - nothing can ever be rolled back or cancelled once it has been recorded. A new block of data will be appended to the end of the blockchain only once enough computers on the network reach a consensus to the validity of the transaction. Blockchain technology is the next step in the evolution of peer-to-peer economy. By combining a peer-to-peer network with cryptographic algorithms, distributed data storage, and a decentralized consensus mechanism, there is now a way for people to share an infallible record together in a secure and a verifiable manner.
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