What is Blockchain ?
In its simple form, blockchain is essentially a decentralized ledger recording information of a transaction which is duplicated and maintained across a network of computers or servers through the internet at the same time.
Blockchain is decentralized as multiple copies of the same data are stored in different locations and on different devices on the network, such as computers or printers. This is known as a peer to peer (P2P) network.
This decentralization nature of blockchain provides a means for members in the network to collaborate without central authorities or middlemen / intermediates to establish trust in the data.
The ledger contains a continuous and complete record (the chain) of all transactions performed which are grouped into blocks using cryptography.
A block is only added to the chain if members in the blockchain network with high levels of computing power, reach consensus on the next ‘valid’ block to be added to the chain.
To determine the validity of a candidate block, members compete to solve highly complex algorithm to verify it.
The first member (called miner) to solve the algorithm and validate the block would be rewarded. Eg on the Bitcoin Blockchain, the miners are rewarded by bitcoins.
The validated block of transaction is time-stamped and added to a chain in a linear, chronological order.
New blocks of validated transactions are linked to the older blocks, making a chain of blocks which show the history of the transaction of that blockchain.
Once the records of the transaction have been validated and added to the blockchain, the records cannot be altered or tempered as they are linked to the previous blocks.
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