We now know what a blockchain is and where it can be used, so the next thing is how does this Blockchain even work. This is the question I’ll be answering in this writeup.
Let’s start with an example, imagine a School where the punctuality of teachers are written down in a diary. Every teacher’s name and the time they came to school that day is penned down. Every teacher can see the names of their colleagues and time they came to school. When a name and time is written down it cannot be changed or altered. Also this diary is not controlled by a central authority in the school but it’s distributed across every office and desk of the school. So with this, no teacher can claim they came to school a particular day earlier. This is a clear example of how a blockchain works.
In the world of Blockchain Technology, this school can be a group of people sharing data across various computers or a group of people carrying out financial transactions like Bitcoin or any other crypto currency. The names can be assets or items of value like contract, money, votes records of sales etc.
So in essence a blockchain network is one that ensures that our data or information in the network are
1.Decentralized - that is, not So in essence a blockchain network is one that ensures that our data or information in the network are controlled by a central authority.
2.Transparent - Everyone on the network can see what’s going on.
3.Immutability/ Security - When data is entered into any Blockchain, it cannot be changed. We all like our values to be well secured right? Yes! this is certainly achieved in Blockchain as these our assets are encrypted through cryptography.
In Conclusion, Blockchain network creates a more secured, easy and comfortable way of storing information and carrying out transactions. This is certainly the future of the Monetary systems in our world.
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God bless you.
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