April 20th, 2018
As the popularity of Blockchain technology increases, millions of people around the world are eager to know about its verification process. Blockchain technology is a new concept that is creating a buzz around the financial market. New reports suggest that this technology can benefit various other sectors, too. The Blockchain is a decentralized system that is independent of central bank or government. This system is highly secure, transparent and immutable.
When someone wants to send digital currency to another person or business, this transaction is then published. Other systems can then scan the Bitcoin network and validate that you have the correct amount of digital currency and that you want to send it to another person or business. Once this information is confirmed, the transaction is then added to the block and it is attached to the previous block. This creates a chain of blocks, called the “Blockchain”. Once the transaction is completed it can not be tampered with or removed.
Blockchain wallets are what holds the Bitcoin address and also records all of your transactions. To send, receive, or store digital currencies you need to have a digital wallet. The Bitcoin address is a code created with a numbers and letters, also called a public key. The sequence of the public key can be seen by all within the network. Along with the public key, there is another key that is kept private (another code). Digital currency users need to keep their private key safe and secret. Both the keys are related, without one of the other,you can’t make transactions.
Transactions that are issued by the user from their Bitcoin address need to be signed with the private key. To complete the process, transaction details and the private key need to be on Bitcoin software on your Smartphone, laptop, or tablet. With these details, the program sends out a digital signature and it gets sent to the network for validation.
This transaction can be easily validated, one of the best things about Blockchain technology. If the signature was made with the private key that corresponds to the public key, the software will validate the transaction. The network will confirm that the user didn’t spend the cryptocurrency by checking the address history. This is possible as the network is now aware of the users address or the public key.
Once the transaction is validated it gets into the block with a chain of several other transactions. Hash is an important function and it plays a huge role. A hash is produced by a hash function which is a mathematical equation that reduces any data into 64 character string. A hash, when put in a particular data, set to the function will reduce it to a 64 character string, it’s not random. But if a simple comma is added to that data the string will be completely different from another 64 character string.
This complete article can be reduced using a hash unless any changes are made to this article the same hash can be produced numerous times. A simple change such as adding a character or removing a character will produce a new string. This is what makes blockchain technology so unique and secure. By checking this the blockchain can confirm that whether a transaction has tampered or not.
Blockchain follows its own way of verifying transactions and this process is completely different than anything else-which makes it unique in today’s world. This makes this technology safe and secure. It’s because of this special feature that many businesses around the world are eager to implement this technology and use it in their own businesses..