For recent years a new term of cryptocurrency and the blockchain has become the part of our lives. Everyone is anxious and curious about them. People want to join the system whether they have a good understanding or not. Ordinary people only know the fact that they can make transfer quickly and can also buy plenty of things including currencies by using the cryptocurrency or system of blockchain.
Although the technical details of the system are much complicated and everyone cannot understand easily. However, the concept has made it more straightforward for ordinary users. Normally, we see it as a ledger that is distributed to the whole network and contains the transaction details.
What is Block chain?
To understand the concept of blockchain let’s consider an example of a regular bank transaction. Whenever you made a transaction from your bank account to another bank account, the bank holds the control of the process and also keeps the record of the transaction. In the same manner, when we transact digitally, a ledger of the transaction is created that is circulated in the whole network instead of being held under a third party’s control. In the bank transactions, there are chances of amendments in the transaction record, but the blockchain is safer in this respect because it is not under a single third-party central authority. This ledger is visible for all in the network or involved in the transaction, but no one can make the changes to it, just like the Google doc sheets that can be shared among various people, but everyone cannot change its content.
Blockchain is a collection of interlinked blocks. Each block in this chain is a group of data which contains the information about the transaction. New data is added in blockchain by connecting the blocks. The initiating block in the blockchain is called a Genesis block. In other words, we can say that blockchain is a distributed ledger and every node in the network holds its copy. This factor provides security in this system of transactions. Let’s have a look into some of the prominent factors that make the blockchain better than the conventional system.
Peer to peer
It enables one to one link between the sender and receiver. It does not involve any third party in the transaction procedure. Instead of it, all the participants communicate and manipulate directly.
Instead of storing the ledger under a central authority, it distributes it among all the participants. Everyone in the network contains a copy of this ledger that makes it difficult to temper.
Secure through Cryptography
For the security purpose latest cryptography techniques are implemented that ensure no ledger tempering.
Only Addition of data
Adding of data in a blockchain is associated with time sequential order so it can only be added in the block but cannot be removed or amended. So once a block of data is created it remains the part of the blockchain.
It is the most crucial property of blockchain. Whenever there is a need for an update in the ledger, it cannot be done without the consensus of all the peers linked with it. No third party regulatory authority can have the right to update the ledger alone. Blockchain protocols have defined strict criteria for the ledger update which must be followed for every update.
How Does It Work?
The working of the blockchain system is not very simple, but I tried to make it simple for you. Whenever a transaction is initiated in the system, more than one nodes of system participate in its verification. Let’s try to understand the procedure in the following steps.
- A node (a computer connected to the network) initiates the transaction and sign it digitally using its private key. The private and public keys are generated through cryptography that ensures the security of the system. It is a data structure that usually contains the value transfer logic, set of rules, addresses of source and destination along with validation information.
- The transaction is spread to the peers using flooding or Gossip protocol for validation as per prior criteria. The transaction requires validation from more than two nodes for progress.
- If the transaction gets validated, it becomes part of the blockchain and also spread in the entire network. It indicates the confirmation of the transaction
- The new block becomes the part of the blockchain and linked with the next block through cryptography usually by the hash pointer. It confirms the transaction second time and block gets its first confirmation in the chain.
- Whenever a new block is created, these transactions require to be confirmed. Generally, after six confirmations the transaction is considered final.
Nexalt and Block chain
Nexalt is an emerging cryptocurrency that is quickly making its way and place into the crypto market. It is based on the blockchain concept and grounds, but it also has found the most straightforward way through which user which have not any more in-depth knowledge of computers and cryptography. For dealing in nexalt, you do not need mining of blocks in the blockchain, instead of if you use the proof of stack technology and deal with already mined units for further buying and selling. In the best interest of its users, nexalt implements all the latest technologies and safety measure in the system. For the newbies in the cryptocurrency system, nexalt is a fantastic offer.