How Blockchain Technology Works ?
Blockchain technology is a structure that stores transactional records called block
, in several databases called chain
, in a network connected through peer to peer nodes.
Technologically, Blockchain is a digital ledger that is gaining a lot of attention and traction recently. Blockchain is an emerging technology with many advantages in an increasingly digital world.
Blockchain technology uses a digital signature feature to conduct fraud-free transactions making it impossible to corrupt or change the data of an individual by the other users without a specific digital signature.
Blockchain technology uses hash encryption to secure the data, relying mainly on the SHA256 algorithm to secure the information. The address of the sender (public key), the receiver`s address, the transaction, and his/her private key details are transmitted via the SHA256 algorithm. The encrypted information, called hash encryption, is transmitted across the world and added to the Blockchain after verification. The SHA256 algorithm makes it almost impossible to hack the hash encryption, which in turn simplifies the sender and receiver`s authentication.
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