Blockchain is actually a database, however very completely different from each different database you might have seen. Because the title suggests, a blockchain is a series of blocks, with every block storing some data.
Different key options of blockchain are that it’s decentralised and by the very nature of that design, it’s immutable.
Let’s see how that works by taking the instance of the blockchain that powers Bitcoin, the world’s main cryptocurrency by market cap.
When a brand new Bitcoin transaction takes place, it’s transmitted to a community of peer-to-peer computer systems scattered around the globe.
These computer systems compete amongst themselves to resolve advanced mathematical equations that will verify the validity of that transaction.
As soon as the transaction is confirmed to be authentic, it’s added to a ‘block’ on the ‘blockchain’.
These blocks are then chained collectively, creating a protracted historical past of all transactions which are everlasting.
An essential characteristic of blockchain right here is its decentralised or shared nature.
In contrast to different databases that are managed by a government or laptop, a blockchain, most often, is accessible to a community of computer systems, that are known as nodes.
All of those computer systems can at any time view the blockchain and observe every transaction that’s being added to it.
That is additionally why the info on a blockchain is immutable.
For the reason that blockchain is current on every node, if one node has an error in its knowledge or if somebody tries to tamper with the blockchain by compromising one of many nodes, all the opposite nodes would function reference factors and stop tampering.
So, the info on a blockchain is, for all sensible functions, irreversible.
This irreversible facet of blockchain is why its use is being advocated for governance features, resembling storing essential information, and elections.
Furthermore, since blockchains are decentralised and visual to their numerous nodes, they’re perceived to be clear — any laptop a part of the blockchain community can view it in actual time.
Whereas cryptocurrency is the preferred use case of blockchain, governments around the globe and in India are transferring quick to leverage this expertise for functions of governance and public administration.