How blockchain can change the digital era?

Posted by Gallactic on December 14th, 2018

The function of this ledger is quite identical to traditional ledger which records debits and credits between people. Basically, the core concept behind blockchain is the difference like who holds the ledger and who verifies the transactions.

No intermediaries with blockchain

In case of traditional transactions, payment from one person to another involves any intermediary to facilitate transaction. But blockchains operate differently in one aspect like they are entirely decentralized. In fact, there is no clearing house like a bank and there is no central ledger held by one entity.

The ledger is distributed across a vast network of computers called nodes. Each node holds a copy of the entire ledger on their respective hard drives. Such nodes are connected to one another through a piece of software called peer-to-peer client which synchronizes data across the network of nodes and makes sure that everybody holds the same version of ledger at any given point in time.

As and when a new transaction is entered into a blockchain, it is first encrypted utilizing cryptographic technology. And as it gets encrypted, the transaction is converted into something called as a block. It is basically the term used for an encrypted group of new transactions. And that block is sent into the network of computer nodes which is verified by nodes. After verification, it is passed on through the network so that block can be added to the end of ledger on everybody’s computer under the list of previous blocks. And the entire process is something we call a chain and the tech is known as blockchain.

When transactions are approved and recorded into the ledger, it can be completed. And this is how crypto currencies work with blockchain system.

No dependence on trust and accountability

The best part is that blockchain systems don’t need to trust them at all. All transactions are verified by nodes in the network before being added to the ledger.  The approach ensures that there is no single point of failure with no single approval channel.

No risk of hacking with blockchain system

However, if a hacker wants to tamper with the ledger on a blockchain successfully, he would have to hack millions of computers at the same time which is not possible. One cannot bring a blockchain network down and he or she need to shut down every single computer in a network of computers distributed all across the globe.

Digital identification and blockchain

Blockchain solves two major issues of our time such as identity theft and data protection. It wraps key data up into an encrypted block that can be verified by blockchain network whenever identity proof is needed.

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