Blockchain technology is a massive data arranging structure that holds the records of transactions made. Typically, this concept of storage is referred to as a ‘digital ledger.’
All the transactions made in this ledger are authorized by the owner’s digital signature, which authenticates the transaction and secures it from tampering. Therefore, the data the digital ledger contains is highly secured and untouched.
In brief, the digital ledger to store fund records is like a Google spreadsheet shared among numerous computers in a network. This holds the transactional records that are later stored on the basis of actual purchases. The most interesting angle is that anybody can see the data, but they can’t corrupt or interfere in its functioning.
With passing time, many businesses around the world have begun to use Blockchain technology. The advancements and development of Blockchain are still very new and have the potential to be vast in the years to come.
Blockchain is based on a combination of three leading technologies:
- Cryptographic keys
- A peer-to-peer network containing a shared ledger
- A means of computing to store the transactions and records of the network
Cryptography keys have mainly two keys – Private Key and Public key. These two keys assist in performing transactions in a smooth manner between two parties. Each individual has these two different keys, which they put to action to produce a secure digital identity reference. It is judged to be the most crucial aspect of Blockchain technology. In the world of cryptocurrency, this identity is represented as a ‘digital signature’ and is often used for authorizing and controlling fund transactions.
Blockchain users generally use cryptography keys to perform different types of digital interactions over the peer-to-peer office network.
