What does blockchain mean?how they work?Every thing you need to know about blockchain --besttechy.ga

What is Blockchain?

blockchain is a growing list of records called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block a timestamp and transaction data (generally represented as a Merkle tree).
By design, a blockchain is resistant to modification of the data. It is "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way".For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks, which requires consensus of the network majority. Although blockchain records are not unalterable, blockchains may be considered secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been claimed with a blockchain.
 Blockchain is considered a type ofpayment rail. Private blockchains have been proposed for business use. Sources such as Computerworld called the marketing of such blockchains without a proper security model "snake oil".
Blockchain-- besttechy.ga

How Blockchain Works?

When a block stores new data it is added to the blockchain. Blockchain, as its name suggests, consists of multiple blocks strung together. In order for a block to be added to the blockchain, however, four things must happen:

  • A transaction must occur. Let’s continue with the example of your impulsive Amazon purchase. After hastily clicking through multiple checkout prompt, you go against your better judgment and make a purchase.

  • That transaction must be verified. After making that purchase, your transaction must be verified. With other public records of information, like the Securities Exchange Commission, Wikipedia, or your local library, there’s someone in charge of vetting new data entries. With blockchain, however, that job is left up to a network of computers. These networks often consist of thousands (or in the case of Bitcoin, about 5 million) computers spread across the globe. When you make your purchase from Amazon, that network of computers rushes to check that your transaction happened in the way you said it did. That is, they confirm the details of the purchase, including the transaction’s time, dollar amount, and participants. (More on how this happens in a second.)

    •   That transaction must be stored in a block. After your transaction has been verified as accurate, it gets the green light. The transaction’s dollar amount, your digital signature, and Amazon’s digital signature are all stored in a block. There, the transaction will likely join hundreds, or thousands, of others like it.

    •   That block must be given a hash. Not unlike an angel earning its wings, once all of a block’s transactions have been verified, it must be given a unique, identifying code called a hash. The block is also given the hash of the most recent block added to the blockchain. Once hashed, the block can be added to the blockchain.

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    Is Blockchain Private?

    Anyone can view the contents of the blockchain, but users can also opt to connect their computers to the blockchain network. In doing so, their computer receives a copy of the blockchain that is updated automatically whenever a new block is added, sort of like a Facebook News Feed that gives a live update whenever a new status is posted.
    Each computer in the blockchain network has its own copy of the blockchain, which means that there are thousands, or in the case of Bitcoin, millions of copies of the same blockchain. Although each copy of the blockchain is identical, spreading that information across a network of computers makes the information more difficult to manipulate. With blockchain, there isn’t a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the network.
    Looking over the Bitcoin blockchain, however, you will notice that you do not have access to identifying information about the users making transactions. Although transactions on the blockchain are not completely anonymous, personal information about users is limited to their digital signature or username.

    Uses of Blockchain.

      Blockchain technology can be integrated into multiple areas. The primary use of blockchains today is as a distributed ledger for cryptocurrencies, most notably bitcoin. There are a few operational products maturing fromproof of concept by late 2016.Businesses have been thus far reluctant to place blockchain at the core of the business structure.


    Most cryptocurrencies use blockchain technology to record transactions. For example, the bitcoin network and Ethereum network are both based on blockchain. On 8 May 2018 Facebook confirmed that it is opening a new blockchain group,which will be headed by David Marcus who previously was in charge of Messenger. According to The Verge Facebook is planning to launch its own cryptocurrency for facilitating payments on the platform.

    Smart contracts

      Blockchain-based smart contracts are proposed contracts that can be partially or fully executed or enforced without human interaction.One of the main objectives of a smart contract is automated escrow. An IMF staff discussion reported that smart contracts based on blockchain technology might reduce moral hazards and optimize the use of contracts in general. But "no viable smart contract systems have yet emerged." Due to the lack of widespread use their legal status is unclear.

    Financial services

    Major portions of the financial industryare implementing distributed ledgers for use in banking and according to a September 2016 IBM study, this is occurring faster than expected.
    Banks are interested in this technology because it has potential to speed upback office settlement systems.
    Banks such as UBS are opening new research labs dedicated to blockchain technology in order to explore how blockchain can be used in financial services to increase efficiency and reduce costs.

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    Supply chain

    There are a number of efforts and industry organizations working to employ blockchains in
     supply chain logistics and supply chain management.
    The Blockchain in Transport Alliance (BiTA) works to develop open standards for supply chains.
    Everledger is one of the inaugural clients of IBM's blockchain-based tracking service.
    Walmart and IBM are running a trial to use a blockchain-backed system forsupply chain monitoring — all nodes of the blockchain are administered by Walmart and are located on the IBM cloud.

    Types of Blockchain

    Currently, there are at least four types of blockchain networks — public blockchains, private blockchains,consortium blockchains and hybrid blockchains.

    Public blockchain

    A public blockchain has absolutely no access restrictions. Anyone with an Internet connection can send transactions to it as well as become avalidator (i.e., participate in the execution of a consensus protocol).Usually, such networks offer economic incentives for those who secure them and utilize some type of a Proof of Stake or Proof of Work algorithm.
    Some of the largest, most known public blockchains are the bitcoin blockchain and the Ethereum blockchain.

    Private blockchain

      A private blockchain is permissioned.One cannot join it unless invited by the network administrators. Participant and validator access is restricted.

    Hybrid blockchain

      A hybrid blockchain has a combination of centralized and decentralized features. The exact workings of the chain can vary based on which portions of centralization decentralization are used.

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