Blockchain, also known as DLT – Distributed Ledger Technology, is a technology that keeps the history of digital assets in their intact condition – unchangeable and completely transparent. It uses cryptographic hashing and decentralization.
To understand blockchain technology, we can simply take Google Doc, where the mean document is shared instead of creating multiple copies for the individual. Here it refers to a decentralized distribution chain system that gives everyone access and welcomes them at the same time, allowing everyone to make changes on the spot, despite waiting for each individual to make changes in the offline mode. This was the amendments any document go through is being watched out and recorded – nothing remains opaque.
No doubt, the above described example is way easier than the technology we are discussing here., but to spark a concept, it can be a sort of helpful example. We can takeout few ideas from it to relate it with the blockchain technology; in terms of digital assets, they are transferred instead of being copied; The system is decentralized, allows real-time access to the asset; It builds up trust in the asset, as it assures the transparency.
In the recent century, it is proven that blockchain is worth innovating, as it has been helpful for the people who have been struggling by the past decade with cryptocurrency, investment, and banking. For the transaction, the first currency (digital) to be used is bitcoin, and the direct technology behind it is “Blockchain”. In the beginning, when it was invented, the fundamental purpose of it was to be just a digital currency, but now the digital community has gone far away to dig out its as many as possible purposes. Satoshi Nakamoto, a great scientist, who innovated this exceptionally great technology. To date, Bitcoin is considered a digital gold, as it’s currency is worth billions of USD.
Blockchain on a global scale
One can rely on authentic companies like Orbit Network INC, which is a worldwide blockchain development company for developing cryptocurrency internationally. This triggers the smart system by which one can drive its usability on the international level.
Products of Orbit Network INC. blockchain such as NYE Coin, SNL Token and RKN Token make it possible for enterprises to shift their assets and make payment settlements overseas.
Concepts behind blockchain
The key idea behind this blockchain technology architecture is to help people share their important information regarding their assets without any doubtful concern. With this technology, people will be able to find their data secure.
There are three important concepts behind the blockchain technology that are:
As the name refers to “blockchain”, it is composed of multiple blocks. The block is further composed of three elements; data in the block, followed by a randomly generated whole number of the 32-bit nonce, that creates a hash (an extremely small 256-bit number).
After the creation of the first block of a chain, a nonce cryptographic hash is generated. Now, the data in the block is declared signed, tightly bound with nonce and hash, until it is mined.
The process miningtakes place – it refers to the formation of new blocks on the blockchain by miners. Mining is not an easy process as it involves some complexity. Every blockchain has a unique code to manipulate it – as is the case with DNA. So, the mining gets even tougher when it’s about a large chain. This incredible complexity requires special software to solve the math of the problem. It does it by finding out a nonce that will further generate a hash that is accepted. When the block is mined successfully, the nodes accept the changes on the network, following the miner’s financial reward.
The important aspect, where no single computer is the owner of the chain is – Nodes,because the technology of blockchain follows the decentralized system. Indeed, it a distributed or shred platform through the nodes being connected to the chain. Nodes keep going the functioning of the network and can be in any type of electronic device. It is essential to note that every single node possesses its own copy of the blockchain. It is up to the network to approve new block mined for the chain in order to update it, make it trusted and verified. As described earlier, its transparency lets the viewer see every action being performed in the ledger. The transactions are being checked by the participants by the unique number they have been allotted.