Blockchain and its importance in Bitcoin Network

Rjain
By Rjain July 13, 2017 10:43

Blockchain and its importance in Bitcoin Network

Blockchain and its importance in Bitcoin Network

Blockchain one of the most important word in the dictionary of bitcoin network. Blockchain is the technology that is mostly used in the virtual currencies only. This technology is firstly used in Bitcoin network only. Blockchain technology is one of the greatest inventions, which serves a big network to create bitcoins on the basis of its address. So now lets look what is Blockchain technology, how does it works, how is it useful and other related information in more detail.

Blockchain Technology Definition

Blockchain is nothing but a distributed ledger system which comes with an ability to distribute information among various nodes. Here the information is just distributed in the digital form, but not copied which is always thought by most of the users. This technology is the backbone of Bitcoin invention and network along with its working. It can be considered as a database of Bitcoin transactions that are done on that network. Lets see how does a Blockchain is maintained.

In a bitcoin network when the transactions are carried out they are stored in one block, so as to maintain the record. When one complete block is filled with data then it enters into the database and will be maintained that permanently. Then on the completion of this block, a new block will be generated. All the completed blocks are saved in the database one after the other in the form of a chain. Hence this is called as a block chain.

Importance of Blockchain

Though there is difference between Bitcoin network and Banking system, still the data storage will be in the same manner, but with the help of Blockchain. So lets see how the Blockchain is working in bitcoin transactions storage. Blockchain consists of complete history of the transactions that has been done in bitcoin network. As we know that all the transactions in the bank are stored in a chronological order, the same is followed even in the blockchain technology. While each block acts just like a individual bank statement that is available for bank accounts. As data stored in blockchain is shared by all the nodes of the network. Hence it is possible to check any transaction at any point of time and the value present at particular address. In this way blockchain is maintained, allows to check at any point of time and plays an important role in bitcoin network.

The increasing popularity and usage of bitcoin creation as well as network is allowing the blocks to be added at a faster rate to the blockchain. On an average at every 10th minute one new block is created and the previously filled block is appended to block chain.

Qualities of Blockchain

Blockchain is considered as perfect and best technology in this internet world, due to its qualities on which it has been built. Lets see how that qualities work and what are they.

  1. Durability
  2. Robustness
  3. Transparency and
  4. Incorruptible

Durability

Blockchain technology is highly durable because it is just similar to that of internet. Hence in the same way it as high durability characteristics  inbuilt in it.

Robustness

Robustness in Blockchain technology is inbuilt and it allows the Bitcoin network to work properly, without any interruptions.

Transparency

Blockchain technology can be said to have the quality of transparency because it is a public network rather than being private. Hence every one will be able to check any transactions on the network, but will not be able to know which user has done this particular transactions. So blockchain technology is said to be transparent.

Incorruptible

Blockchain cannot be corrupted because, if there are any alterations in the information on any one block. Then it is essential to use high computing power in order to rewrite the entire network which is quite tough task. Hence this is an incorruptible technology.

Blockchain works on decentralized technology

Blockchain technology is totally based on the decentralized concept. It means that the entire network is based on the peer-to-peer basis. Hence it means that it is operated by its own network only, there will not be any authorities to govern this technology. So even a small disturbance in this blockchain will have its effect on the entire network system. Hence blockchain can be named as a decentralized form of network. In the near future most of the world relies on the decentralized networks only as there are lots of benefits using this type of system.

Blockchain places of use

Though blockchain technology cannot be used for common people. But as per estimations huge number of transactions are being carried using bitcoin transactions which has been built using blockchain technology. Most of the people are getting customized to use wallet applications to carry out bitcoin payments, which is not only popular but is safe and secure. It helps in purchasing things in online without putting much efforts and energy.

Blockchain has security over its network

In this digital world, security plays an important role because everything is based only on two things that are username and password. But blockchain technology provides security and saves data from getting hacked. This is possible with the help of data that is stored across the network. It will use encryption technology in order to secure the data of its network. That means this technology has been based upon two keys that are private and public. A randomly generated string with numbers in it is called as a public key which will be address of the blockchain. This is the users address, while private key is similar to that of the password that allows its users to access their bitcoin account.

So we can conclude that blockchain technology is one of the best innovations of this digital world that is secure, safe, transparent and easy to use. Upon all that it works on peer to peer concept making it decentralized network and with less transaction costs for the users, making it highly beneficial. So hoping that in near future most of them rely on this technology only.

Rjain
By Rjain July 13, 2017 10:43
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