What is Blockchain? – Finance for all

To define the blockchain, the mathematician Jean-Paul Delahaye gives the image of ” a very large notebook, which everyone can read freely and for free, on which everyone can write, but which is impossible to erase and indestructible “.

In October 2015, The Economist launched a media frenzy around the blockchain: on the front page of the magazine was the following message: “ How the technology behind bitcoin (i.e. blockchain) could change the world “. Since then, the blockchain has been gaining ground and today represents a market of approximately 3.67 billion dollars, according to a study by the firm of consulting Grand View Research March 2021.

There are public blockchainsopen to everyone (such as the Bitcoin network, for example), and private blockchains accessible only to a few users.

How Blockchain Works

How is security ensured within the blockchain?

One of the great advantages of blockchain is the security it provides for transactions carried out in the network. This security is ensured thanks to three elements that make up the blockchain: a system of asymmetric cryptographythe process of miningand finally the existence of knots.

An asymmetric cryptography system

All actors participating in the blockchain have two keys : a private key which allows them to digitally sign their transaction, and a public key generated for each new exchange. This allows users to protect their identity while remaining transparent about the nature and quantity of exchanges made.

Mining

Mining is the process by which the different blocks are validated and therefore secured. To this end, the so-called “miners” carry out mathematical calculations with their computer equipment to check and then validate blocks of transactions.

In addition, you should know that most minors join the ” mining pools (miners’ cooperatives) which are groups of people who combine the processing power of multiple computers to verify transactions.

knots

Nodes are computers attached to the network. Each node has a copy of the database which traces the history of all the transactions carried out. Thus is formed a chain of interconnected blockswhich makes the blockchain tamper-proof.

Thus, if a third party wishes to hack the network, it is necessary for this hacker to corrupt more than half (more than 51%) of the nodes simultaneously. The number of nodes being very large, in the event of an attempt at fraud, this would be detected very quickly.

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What is Blockchain? – Finance for all


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