Blockchain Technology-Develop Your Understanding Here The scientific development is an ongoing process, and it keeps on evolving from time to time. The credit should go to the scientists who keep themselves engaged thoroughly to find out new things or to find a more developed version of an existing invention. The development procedure of Blockchain Technology is not just a matter of scientific process; it is a great procedure that promises a better future in the field of value transfer, especially money transfer. What is a blockchain? You can understand the blockchain as just a record. It is like a ledger of the Bitcoin transactions that have ever been conducted by individuals. It is very much similar to a ledger that a bank or any other financial institutions use to maintain the record of transactions of their customers. However, that is the only similarity that put banking and Block Chain technology in one same bracket. The processes have some differences too. In the case of a bank, the authorities control the ledger by themselves. The transactions are visible to the bank only. The banks have their own system that maintains the privacy matters exclusively within the banks only. In the block chain, a large number of participants share the copy of the ledger file from different global locations. These participants are termed as miners. Everyone can become a miner by just downloading the open source Bitcoin or blockchain software. A transaction becomes inerasable once it is entered into the blockchain software. Actually, the entries cannot be modified even. Why is it called blockchain? To understand what a blockchain is, you need to consider how a bank official works first. While working with the physical ledger, the user maintains accounting records on the computers. The entries are made in the register. After a certain period, the accountant or any other authority checks all the entries, notes the last balances and signs at the bottom of the respective pages. It means that transactions up to that page are checked and fixed, and anyone cannot make a new entry in the past.
In the likewise manner, this period of sealing past entries is just 10 minutes for Block chain technology as the Blockchain software fixes the time around 10 minutes only. Miners are allowed to collect the transactions that are completed during the last 10 minutes. After that, they can record the transaction records together. These records are termed as blocks. In the physical ledgers, each subsequent page is linked with the last one with the help of page totals that are entered at the bottom the pages. In the likewise manner, each block is adequately linked to the last blocks with the help of a hash (#) sign. This process creates chains, and these chains include a large number of blocks at the end. How does the blockchain work?
A bank or a financial authority secures the ledgers in a protected at a central authority that the bank employees and the customers believe to be safe. However, the blockchain technology does not use any central authority of any kind. The software maintains the security of the transaction records without any central authority. The process is believed to be safe and secured, and not violation can be registered in any case.