Blockchain

A blockchain is a shared distributed database or ledger between computer network nodes. A blockchain serves as an electronic database for storing data in digital form. The most important use of blockchains is in cryptocurrencies like Bitcoin, where they play a key role in keeping a secure and decentralised record of transactions. The innovation of a blockchain is that it fosters confidence without the necessity for a reliable third party by ensuring the fidelity and security of a record of data.

The way the data is organised in a blockchain differs significantly from how it is typically organised. In a blockchain, data is gathered in groups called blocks that each include sets of data. Blocks have specific storage capabilities, and when filled, they are sealed and connected to the block that came before them to create the data chain known as the blockchain. Every additional piece of information that comes after that newly added block is combined into a brand-new block, which is then added to the chain once it is full.

A blockchain, as its name suggests, arranges its data into pieces (blocks) that are strung together, whereas a database typically organises its data into tables. When used in a decentralised way, this data structure creates an irreversible chronology of data by design. When a block is completed, it is irrevocably sealed and added to the timeline. When a block is added to the chain, it receives a precise timestamp.

Working of Blockchain:

Blockchain aims to enable the distribution and recording of digital information without its editing. A blockchain serves as the basis for immutable ledgers, or records of transactions that cannot be changed, removed, or destroyed. Because of this, the term "distributed ledger technology" also refers to blockchains.

The blockchain idea was first put forth as a research project in 1991, long before Bitcoin became a widely used application in 2009. Since then, the introduction of numerous cryptocurrencies, decentralised finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts has led to an explosive growth in the use of blockchains.

Security of Blockchain:

Decentralized security and trust are made possible by blockchain technology in a number of ways. To start, new blocks are always chronologically and linearly stored. In other words, they are constantly added to the blockchain's "end." It is very difficult to go back and change the contents of a block once it has been added to the blockchain unless a majority of the network has agreed to do so. This is due to the fact that each block has its own hash, as well as the hash of the block that came before it and the aforementioned date. A mathematical function that converts digital information into a string of numbers and letters produces hash codes. The hash code also changes if that data is altered in any way.