What is Block Chain
Block Chain is a system that save records of Many transactions made in bitcoin or another cryptocurrency are maintained several computers that are linked Each other through a network.
” In Simple words we look our data in form of blockchain and see evidence of what is going on”
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Who Invented Block chain
Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta, two mathematicians.In the late 1990s, Cyberpunk Nick Szabo proposed using a blockchain to secure a digital payments system
Main Purpose of Block Chain Technology
Block Chain is a Digital Plate form that store the information in Binery form That show your data virtulay form.Block chain is an information system that store Many information in one Plate form.
It allows users to manipulate the ledger .that is information sharing system.That digital software
Give the facality of Transaction Recording & tracking assets of any Business firm.
Classification of Block Chain Technology
- public blockchains
- private blockchains
- consortium blockchains
- hybrid blockchains
Impact of Block Chain Technology on financial sector
Blockchain can improve payment transparency, efficiency, trust, and security and reduce the cost of financial services firms and users. Earlier, when one firm send the payment to other firm that processes take a lot of time.Through Block chain the payment system is very fast and accurate.
Impact of Block Chain Technology on E- Commerce
E-commerce sellers can rely on blockchain-based bitcoin and a host of other cryptocurrencies to take advantage of lucrative digital payment solutions. By removing middlemen and middlemen from the payment process, the blockchain eliminates transaction and processing fees, allowing retailers to achieve profitability. E-commerce sellers can rely on blockchain-based bitcoin and a host of other cryptocurrencies to take advantage of lucrative digital payment solutions. By removing middlemen and middlemen from the payment process, the blockchain eliminates transaction and processing fees, allowing retailers to achieve profitability.
Impact on industry distribution
With blockchain technology, transactions can be documented in a permanent decentralized record, and monitored securely and transparently. This can greatly reduce time delays and human mistakes. It can also be used to monitor costs, labour, and even waste and emissions at every point of the supply chain.
Blockchain Use Cases in Banking & Finance
- International Payments. Blockchain provides a way to securely and efficiently create a tamper-proof log of sensitive activity. …
- Capital Markets. …
- Trade Finance. …
- Regulatory Compliance and Audit. …
- Money Laundering Protection. …
- Peer-to-Peer Transactions. …
- Supply Chain Management.
Blockchain Architecture for Beginners
Now that we now have an idea of blockchain, it is now time to learn about blockchain architecture.
The key components of the blockchain architecture are as below:
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A blockchain is composed of blocks. The blocks are stored in a linear fashion where the latest block is attached to the previous block. Each block contains data — the structure of the data stored within the block is determined by the blockchain type and how it manages the data.
Bitcoin and Ethereum are popular examples of blockchains. Everyone is allowed to connect to the blockchain and transact on them.
A transaction takes place within the network when one peer sends information to another peer. It is an essential component of any blockchain, and without it, there would be no point in using any transaction.
A transaction consists of information, including sender, receiver, and value. It is similar to a transaction made on modern credit card platforms. The only difference is that the transaction here takes place without a central authority.
A simple example is a user sending bitcoins to another user. A blockchain transaction begins with an agreed-upon contract that changes its status. Since the entire blockchain is a decentralized network, all nodes must update it. .
The block we discussed earlier contains a set of parameters. There is a limit to the number of transactions a block can contain. It depends on the block, transaction size, and any restrictions on the number of transactions that can remain in a block. The transaction is validated by independent nodes based on the consensus method used.
Technically, each transaction can have one or more inputs and outputs. This way, the transactions are linked so that you can keep a proper note of the expenditures made on the blockchain..
The final important part of the blockchain architecture is consensus. It is the method by which a transaction is validated. Each blockchain can have a different consensus method associated with it. For example, Proof of Work (POW) is a popular consensus algorithm used by the most popular cryptocurrency networks such as Bitcoin and Lite-coin. It requires a participant node to prove that the work done and submitted by them qualifies them to receive the right to add new transactions to the blockchain..
How Does Blockchain Work
If you want to know how blockchain works in a step-by-step process, we can review it below.
Step 1: In the first step, a transaction is requested. The transaction may be for the transfer of information or assets of monetary value.
Step 2: A block is created to represent the transaction. However, the validity of the deal has not yet been verified.
Step 3: The block with the transaction is now sent to the network nodes. If the blockchain is public, it will be sent to each node. Each block consists of data, the hash of the previous block, and the hash of the current block.
Step 4 – The nodes now start validating according to the consensus method used. In the case of Bitcoin, Proof of Work (POW) is used.
You Can Also Download Software that use in Block Chain Technology
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