The digital account ledger for recording blocks of data connect by chain is the foundation of the Blockchain Technology. In traditional methods, the data will be stored in a centralized node which receives data from all ends. This central node will be accessible by only one party where the others will have no access to this. If any damage to this central node, the entire data will be at risk. Here is where Blockchain fared. It functions with decentralised mode, which means the data is not stored at a central node and is accessible by everyone. This gives more visibility to the transaction. Blockchain creates hashes to record every transaction and these hashes cannot be reversed or altered. This means the data is going to be secured and there is no discrepancy in the data. Bitcoins transactions where made using the Blockchain technology and hence it is apt to say that bitcoins introducted Blockchain to this world. But the scope of blockchain has extended beyond bitcoins. Some of the other applications are:
1) Digital Asset Management: Online transactions, stock and bonds purchase and delivery 2) Big data: Collection of high volume and secured data. This can be anything from customer information for a corporate to voter details for government.
How to learn Blockchain:
There are many online Blockchain certification training course which will help you in understand the technology better. Here we will see the basics of Blockchain training. The perquisite for this is knowledge in programming language like JS, python etc. Let us pick any cryptocurrency to see how the transaction is done using Blockchain. Here, we are taking Ethereum. Our term is Accounts which are the basic units. In blockchain, every state of the account is tracked. Accounts can be divided into two based on the nature of it. 1) Extrernally owned accounts are managed by the user 2) Contract accounts are managed by internal contract codes. These contract accounts can be managed by external owned user accounts.
A de-centralized application is created an extranally owned account activates the code in the contract account. This contract account creates answers which are agreed upon by all nodes. This process is triggered by the externally owned account. The accounts should contain certain fields for a successful answer. They are:
- A Nonce which makes each transaction appear only once
- Account balance
- Contract code
A transaction occurs when an external account activates the contract code. The parts of the transaction are recipient, signature, amount of account units, other useful data. Every transaction is recorded in nodes called miners, these will also collect fees for the transaction. The miners act as collectors of transactions and groups them into blocks which will be added to the Blockchain.