How Does Blockchain Technology Work

You may have noticed that Blockchain technology is being used by a growing number of companies all around the globe. Yet, how does this Blockchain function? Is this a substantial modification or a simple addition? Since Blockchain’s development is still in its infancy and has the potential to be revolutionary in the future, let’s start making sense of it. 

The Blockchain combines the following three technologies:

1. The use of Cryptographic Keys
2. Distributed ledger technology that operates on a peer-to-peer basis.
3. The computerized system keeps track of all network activity and data.

Public and private keys are the two halves of a cryptographic pair. These keys facilitate transactions between two parties. These two keys are uniquely assigned to each person and may be used to create a protected digital identifier. Most importantly, Blockchain ensures a protected identity. This kind of identification is called a “digital signature” in the cryptocurrency industry and is used to authorize and regulate financial transactions.

Briansclub is a platform that uses Blockchain technology and has every type of token and digital currency available on it.

The digital signature is combined with the peer-to-peer network; many persons who operate as authorities utilize the digital signature to establish an agreement on transactions, among other concerns. When they provide the go-ahead for a transaction, it is confirmed mathematically, leading to a safe exchange between the two parties involved in the network. To sum up, to conduct various forms of digital interaction across the peer-to-peer network, that is, Blockchain, users make use of cryptographic keys.

History of Blockchain

Blockchains were conceptualized in 2008 by a person or people going by the name Satoshi Nakamoto, whose true identity has never been revealed. Nakamoto used a technique similar to Hashcash to develop and refine the architecture as time went on. As a result, it quickly rose in importance, ultimately becoming a central part of bitcoin. This widely used cryptocurrency acts as a public record for all transactions throughout the network. The size of the blockchain files, which kept track of all Bitcoin transactions and information, kept growing. In August 2014, it hit 20 GB; by early 2020, it was over 200 GB.

Types of Blockchain

There are four types of Blockchains. These are given below,

Private Blockchain Network

A private blockchain is one that can only be accessed from inside a closed network, making it suited for usage by certain communities. Businesses may control who has access to their Blockchain, how the network is configured, and other vital security features with a private blockchain. A private blockchain has a single point of control.

Public Blockchain Network

Cryptocurrencies like Bitcoin and Ethereum were first implemented on public blockchains, which helped spread awareness of distributed ledger technology (DLT). Public blockchains also assist in avoiding some obstacles and concerns, such as security weaknesses and centralization. Instead of storing information in a central database, DLT makes use of a decentralized peer-to-peer network. Proof of stake (PoS) and proof of work (PoW) are two common consensus algorithms used to check the validity of the information.

Permissioned Blockchain Network

Private blockchain networks that only allow access to verified users are called Permissioned Blockchain networks. This hybrid blockchain setup provides organizations with the best of both worlds by allowing for more precise control over who has access to the network and which transactions they can take part in.

Consortium Blockchain

Consortium blockchains, like Permissioned blockchains, will contain public and private parts, but unlike Permissioned blockchains, a consortium blockchain will be managed by numerous entities. These blockchains may be more difficult to set up initially, but once they are operational, they may provide enhanced security. More than that, consortium blockchains are best for working with several different companies.

The Process of Transaction

The confirmation and authorization of transactions are crucial to Blockchain technology. If two people want to conduct a transaction using their private and public keys, the first person will affix the transaction details to the second person’s public key. All of this data is compiled into a single block.

One important fact to keep in mind is that the Blockchain does not keep any records of the individuals involved in the transaction. The network as a whole receives this block, and the transaction is complete once the proper user validates it using his private key.

The Blockchain is not limited to only handling monetary transactions; it may also record records of sales of real estate, automobiles, etc. There are also so many tokens on the briansclub platform for selling and buying purposes.