Explaining the Blockchain: Fundamentals of Decentralization

If at any time in the future, we have to discuss a topic that was completely anonymous and became a hit right after its launch, people will come up with the name of none other than blockchain. Blockchain which was an anonymous invention has become an important part of our daily routine and digital life. By the number of trending spots, blockchain is the only topic that has managed to lead the spot not just for once but many times and to this date is holding the prime position. Every person who has tested his wits in the digital market has once in his life come up with the concept of blockchain. There is no point in his life where he has not heard about this term and this is an obvious cause without blockchain his entry into the digital world is merely an absurd activity. As a crypto enthusiast, you’ve probably heard of the proof-of-stake (PoS) idea.

Though bitcoin is considered a fundamental entity in the lives of digital investors, still very less is known about its fundamentals. People know the name but they are not aware of the fundamentals. In this article, we are going to discuss the important fundamentals of blockchain and will clear the air about this term. So, let us start the journey!

Blockchain- An introduction

The first step towards understanding blockchain is to know what it is. The facility that helps in recording transactions over the digital platform is none other than blockchain. Just like an accountant, a blockchain performs almost the same role. The base of blockchain is P2P wherein there are nodes or peers in the form of computers that are interconnected on a network. The data is cryptic and secretly secured from unauthorized access. Thus, this P2P network helps to maintain security and reliability for the data to be shared and stored. 

Working of blockchain

Whenever a user wants to perform a transaction, his request is commenced right from his node. The vast network of peers helps him to get the transaction validated before it is processed and for this purpose, the requested information is broken into blocks of information. These blocks help to generate the required status. After the pre-requisite is validated and verified, each block of information is added turns. For the transaction to be tagged as completed, the solution related to each block is necessary, only after which transaction is said to be completed. 

Derivatives of blockchain

More specifically these are referred to as the pillars of blockchain. The pillars are a decentralized network that marks a line between governmental and nongovernmental authorities. Security is considered another important feature of blockchain that is very necessary. The blockchain network is considered so secure that many organizations which used to store their data on some other cloud are switching to this more secure digital platform of the network. The last and final pillar is transparency. This means that there is no boundation if one wants to check the status of a transaction online. Anyone from any place in the world can get the transaction checked by someone or himself can check the same. 

Types of blockchain

Depending on the access to technology blockchain can be divided into public, private, and hybrid forms of blockchains. As reflected in their names, a public blockchain allows anyone from the public to join the blockchain network whereas this is not possible in the case of the private blockchain network. In the hybrid form of the blockchain network, the limitations of both public and private blockchains are covered up and as a result, the developed form of a blockchain network is created.  

Thus, the blockchain network is evolving and is changing according to the needs of its users and investors.