The blockchain is a digital account book which is being programmed not just for recording every financial transaction, but also keeps a record of everything. The permission of accessibility of each cryptocurrency’s coins is given by a blockchain. A blockchain is a constantly growing list of records, known as blocks, which are always interconnected and secured. Each block consists of a hash pointer which is connected to a previous block, a timestamp and transaction record. Blockchains are designed to attain the resistant to frequent modification of the data. It is “an open, distributed ledger which efficiently records every transaction between two parties and gets verified in all ways and also keeps the record of it.
A blockchain is generally operated by a peer-to-peer network and works as a distributed ledger; it always sticks to a protocol for validating new blocks. Once recorded, the data can never be deleted from any given block.
Decentralized blockchain solves the double spending issue without the help of a trusted authority or central server.
The block time is the mean time taken by blockchain to generate one extra block in the network. Some blockchains build a new block as quick as within five seconds. At the time of block addition, the data is being verified during money transaction takes place. A shorter block time indicates faster transaction.
Now, just imagine a datasheet operated by more than a million of computers, this datasheet needs to be continuously getting the update. It is a constantly reconciled database. Plus it is public and easily verified. Therefore, the database is not stored in just a single location which makes difficult for a hacker to corrupt the files.
Blockchain technology is like an online web server in which it has an inbuilt strongness. By storing blocks of information that are similar across its huge network. The blockchain cannot be controlled by any individual without any given identification. It is not a decentralized form of a system. It has fewer chances of having a point of failure.
Why Blockchain uses a decentralized system?
The meaning of decentralization means the network which operates on a user-to-user (peer-to-peer) method. Today, whole world’s computer network uses blockchain technology to together manage the database that records every Bitcoin transactions. That is, Bitcoin is managed by blockchain network, and not from any central authority.
Enhanced security of Blockchain
Data storage is across its network; due to this, the blockchain removes the risks that come with data being held centrally.
Its do not allow computer hacking because of its decentralized points of vulnerability which do not allows hackers to exploit.
Blockchain security methods use encryption technology.
It uses both public and private “keys”. A “public key” contains the users’ address on the blockchain. The transaction record of Bitcoins which is sent across the network gets recorded. The “private key” is just like a password that allows its owner to access to their Bitcoin or other digital assets. Stored data on the blockchain and it is incorruptible. It also safeguards your private key by not printing it out.