is a global online database, which anyone can use anywhere with an internet connection. Because it is already on the internet, it is decentralized, which means the blockchain ledger is shared with all computers around the world, not in one central location.
How Does Blockchain Work?
Here are a few features of blockchain,
- Blockchain record all the data exchanges – In the cryptocurrency, all these records are referred to as a ledger and each data exchange is a transaction. All the verified transactions are added to the ledger which is known as a block.
- It collects a distributed system to verify each transaction – a peer to peer network of nodes.
- Once you signed and verified, each newly added transaction is added to the blockchain and cannot be altered.
From the begin, we need to explore the concept of “keys”. With a set of cryptographic keys, you get a unique key. Mainly every user gets two keys, one is the private key and another is a public key, and together they are combined to give you a digital signature. The public key enables others to identify you. And private key is for you to digitally sign and authorize different actions on behalf of this digital identity when used with your public key.
Your private key allows you to authorize transfers, withdrawals and other actions using the digital property like cryptocurrencies. This is the reason to keep the private key private. Every time when a transaction, the transaction signed by the authorized person. Then it gets added to the ledger of the blockchain and will also include a timestamp and a unique ID number.
Each transaction in the ledger include the same data, a digital signature, a timestamp, a public key, and a unique ID. All the transaction are connected with each other. The anonymity of digital currency – cryptocurrencies come from the fact that your public key is just a randomized sequence of letters and numbers. A public key will not help you in getting the real identity of the person behind it. Also, you are free to generate as many key pairs as you want and use multiple cryptocurrency wallets.
This is all about the Blockchain and how it works. To know more about blockchain or cryptocurrency contact our Blockchain Technology Expert of Minddeft, for more visit us online on Minddeft.com