Blockchain technology is the latest technology that helps in recording data and information without being able to duplicate, hack or cheat.
There is a block and every block contains a transaction as soon as that transaction is completed it is recorded in the artificial ledger and chained to the whole system network.
The best part of the blockchain is every transaction new or old is recorded in the ledger of every participating system. This means there is no way to alter data as everyone is already familiar with the latest trend or new records.
One of the most popular and best features of the Blockchain is the record of cryptocurrencies such as Bitcoin and Ethereum and coincidentally they are also two of the most popular crypto in the market.
So if you want to learn more about Blockchain, how it works, and what are its advantages, be sure to engage till the end. By the time you are done, you will be more familiar with the Blockchain concept.
There are several elements of blockchain so let’s take a look at them below.
Ledger
The only and one of the most important elements of Blockchain is the ledger. The ledger technology records all the changes and new introductions of records so that everyone can view them.
Another major note you can make is you can only make one recording on Blockchain so that the fear of duplication completely removes.
Consensus Mechanism
The consensus Mechanism is a set of rules and regulations which determine to filter legitimate transactions or networks with phony ones so that they could be added to the blockchain.
This mechanism is the only thing that keeps the blockchain ticking and determines the composition of the blockchain.
Peer-to-Peer Network
A Peer-Peer Network is a very complicated model for communicating between various participants without needing any central servers or without needing to depend on other nodes.
A Peer to Peer network helps to work as a client and a server which means if any changes have to be made in the blockchain without any intermediary.
How Does Blockchain work?
Since we are now familiar with the concept of blockchain let’s talk about how it works. Blockchain is a database that consists of various that basically work as a block and every data is a different block of a whole blockchain.
If the data or blocks are related to one another they are connected to the previous block and every new data are stored in the fresh new blocks.
Blockchain consists of various different data but most recently they are used as the ledger or transaction evidence for various crypto-related issues.
For various crypto and especially Bitcoin, the information on the transaction are clear and can be seen by everyone so there is no chance of any scam or scandals. This is one of the main reasons why Bitcoin is regarded as one of the most beneficial cryptocurrencies in the world.
However, Blockchain does not only have all pros but there are some cons as well.
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Let’s take a look at the
Advantages and Disadvantages of Blockchain
Advantages of Blockchain
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You can’t replace or erase any data from the Blockchain.
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The information in the Blockchain is very transparent which builds trust among the public.
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Blockchain is a decentralized network which means even government can’t block or interrupt any data.
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You can easily trace the transactions in the blockchain so there is less chance of any scam.
Disadvantages of Blockchain
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Since Blockchain is a very complicated database it is quite expensive.
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You cannot change any info on the database so it is hard to correct any mistakes.
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Blockchain has an unlimited amount of data so it is considerably slower than other traditional databases.
Image Credit – Pixabay.com
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