Introduction

As you know blockchain is becoming a very popular technology nowadays. But have you ever wondered what really blockchain means and how it does work, if the answer is yes then you are on the right place. Because in this blog post, I am going to tell you what and how blockchain works from the scratch.

What is Blockchain?

Blockchain is a distributed immutable ledger that is completely transparent. It is transparent because all the data on the blockchain is visible to all And the data on the blockchain can not be changed or corrupted once it is uploaded on the blockchain which makes it immutable.

The Key features of Blockchain

1. Smart contract:- Smart contract is a program that runs on the blockchain. It is just like the physical contracts but they run on the blockchain which makes it more trustable and transparent.

2. Immutable ledger:- Another key feature of Blockchain is that it is an Immutable ledger which means the data which is uploaded on the blockchain can not be changed.

3. Distributed:- Unlike client-server relations, there is no central hub to store the data. The data is stored on every node of the blockchain network. Which, means the data is not controlled by any one party.

Blockchain Working

Blockchain works on the distributed peer-to-peer network. Now you will wonder what is P2P network, then let’s find out.

The P2P network is the network in which each and every node or computer is connected to each other. All the nodes can directly communicate with each other.

In the blockchain, any one node will mine the block and all the other nodes will verify the transaction that it is valid or not.

If it is valid the block will be added to the blockchain and the miner who mined that block will get an incentive in form of cryptos. And that block will be added to the blockchain.

All the miners in the blockchain are having the same blockchain. And to hack the block the hacker has to hack the 51% of the nodes at the same time which is impossible to do.

Diagram of P2P network