In Recent years, you may have noticed that Blockchain technology is being integrated by a lot of businesses. But we need to understand, how does the block technology work? If the advancements of Blockchain have the potential to be revolutionary in the future;

The new data is recorded in a fresh block. Once a block is filled with data, it is added to the chain as a part of the usual blockchain technology procedure.

To go into further detail, each new transaction is transmitted within a network of peer-to-peer computers.

This network performs a check and confirm the validity of the new transaction. Once the validity is confirmed, the transaction enters into a fresh block. Subsequently forming part of a history of similar historical transactions.

Apart from bitcoin information, blockchain technology is also used to store any important business information like contracts and commercial data.

An important feature of blockchain technology is its transparency. Anyone enter into the network can view the events happening in the blockchain. With their nodes, people can check the latest status and all the updates happening in the world of bitcoin.

Blockchain is a combination of three leading technologies:

1. Cryptographic keys
2. A peer-to-peer network containing a shared ledger
3. A means of computing, to store the transactions and records of the network

Cryptography keys consist of two keys – Public key and Private key. These keys help in performing successful transactions between two parties. Each individual has these two keys. They use these key to produce a secure digital identity reference. This secured identity is one of the most important aspect of Blockchain technology. In the world of cryptocurrency, this secured identity is referred to as ‘digital signature’ and is used for authorizing and controlling transactions of the two parties. 

The security of the blockchain is ensured through the hash codes. The hash codes convert digital transactions into a series of numbers and letters. Each block gets time-stamped, and it is nearly impossible to alter the content of the blocks in the chain and also known as Cryptographic keys.

The reason it is nearly impossible to hack blockchain is that any change in the hacker’s copy of blockchain will stand out among all peer-to-peer copies. The hacked copy will immediately be eliminated and automately reproduce the blocks.

The digital signature is merged with the peer-to-peer network; a huge number of individuals who act as authorities use the digital signature in order to reach the trnsaction securely, inorder to avoid other issues. When they authorize a deal, it is certified by using mathematical verification. Which provides you a successful secured transaction between the two network-connected parties.