In this blog let us mine for some information related to blockchain technology..
What are Blockchain Technologies?
Blockchain technologies are used to decentralize, distributed ledger used to record the digital asset.
Why are they used?
They are generally used to store information.
Are blockchain technologies safe?
Yes the blockchain technology we use is surely safe and not prone to hackers.
The data which we are going to invoke into this particular technology is stored in form of a block which is secured with a hash which is a 250 bit character which is created by an individual or a group of organizations.
Structure of blockchain:
A blockchain is in the shape of a block which consists of three abstractions:
- Block
- Node
- Miners
Now let me elaborate on the above points briefly.
Block:
A chain consists of a block which again has three main parts:
Data we store.
A nonce: which is a cryptography number which is used to protect information by preventing third-party access.
The hash: a 250 bit number which is connected to the nonce.
How is data stored in a block?
A block is first created with a cryptographic hash attached to it. The hash which is created is not changed unless until we mine the hash.
Node:
One of the most important feature in the block chain technology is no one can own the chain. It is distributed among the chains in the node. Nodes are the backup devices which have a copy of the data which we store in the block.
In order to update our data time to time the chain must be algorithmically, approved. As the chains are transparent they can be viewed by an individual who is having a alphanumerical identification(a unique I’d) by which he/she can get the idea of transactions.
Miners:
Miners create a new chain in the block which is known as mining.
In a Block Chain every nonce and hash is unique and is not very easy to do mining in a large chain.
Miners use special technology to solve the problem of finding the perfect combination of hash-nonce combination. A hash is a 256 bits character and nonce is a 32 bit character there are roughly four billion hash-nonce combinations that must be mined until a perfect combination is found, when found this is put under the “golden nonce”, and is added to the chain.
So finding a perfect combination in a blockchain is difficult so we can say that it is very difficult to manipulate blockchain technology.
Pro’s:
- We can store our money or credits in the form of cryptocurrencies.
- It eliminates the third party access by creating a strong security to the data.
- Eliminates the need of physical verification every time.
Cons:
- If once a hash-nonce combination is forgone then it is hard to reset.
- Data storage is limited.
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