Blockchain (Part 02) : Basics of Blockchain and Mining

engrsayful (78)modCOMMUNITY MODin Tron Fan Club • 2 years ago (edited)

Sometimes people think that Blockchain means cryptocurrency which is actually a misconception. Blockchain is an advanced technology where data is stored in a secured and distributed manner.

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We often see organizations or even government from any country arbitrarily adding & deducting own data files to misinterpret the common people. Tempering or fabrication is possible by central body as data is stored in their own server and they have control over it as well.

Whatever the form of organization or business, they must have a database whether it is small or big. In primitive time, recoding was on mind, then on books, then on PC (for example in excel sheet), then now in their own server. Blockchain in even updated technology than last one.

In blockchain network, all the regular working data of an organization will be checked and verified by a group of people’s computer software. When it is done, then a packet or bunch of data will be in a group named Block and will stored with the previous blocks. In this way, it will make a chain of blocks one after another. Thus calling Blockchain.

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Blockchain is a distributed ledger recording and normally decentralized. Here, when data is recorded in chain, then it is difficult to change and anyone have the access of the data from different parts of the World. So, it’s a decentralized system. If any organization wants to make their own centralized blockchain, they can also do so. But the data security and server maintenance will be better for them. The authoritative power over the data by the organizations make them people in threat and think alternate technology thus people invented blockchain technology.

Those group of people who will run the server and verify the transactions will be given some token for their effort in the chain. This process is called mining. Mining simply means the nodes (computers) that are verifying each transaction. A new code or hash will be created for each transaction. In this way some new currencies are created in the blockchain which are distributed in the blockchain by any specified system.

In this way, a block will be created with the information of some number of transactions. Within a block there will be information of many transactions and there will be a public hash (code) for each transaction. The block that is being prepared with the consent of all nodes will be merged with the previous block. This is called blockchain because the blocks will be like one chain after another. Once blocks are added to a chain, no one can change them until all of those computers or miners (or more than 50% of miners) make a decision together.

As in decentralized process, miners are from different parts of the world, so it is very difficult to bring everyone together in one place. Thus, it is very difficult and almost impossible to make any kind of change in blockchain normally.