Down the road, Blockchain is a useful way to store the data. This is very similar to storing data in a database. Each fragment of data is called a ‘block’ and once you define it, you can edit it as and when required. Blockchain uses a ‘hash’ to solve complex problems. A hash is a unique number that is generated from a much larger body of data. Any change in this data displays a new number every time.
Blockchain technology creates a long chain of blocks that are linked together. These chains prevent new number generation every time in case there is a change. These blocks are linked together and they check the integrity of links. Apart from having several advantages, Blockchain technology is taking the financial market by a storm.
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In a chain, every node on the network has a copy of the digital ledger. Every node needs to check its validity if it wants to add a transaction. If the majority detects its validity, it is added to the ledger.
The entire network is decentralized and no particular person or authority looks after the framework. Only a group of nodes manages this network thereby decentralizing it all.
As it eliminates a centralized hub, no one can change the traits of the network for personal gains. Block encryption ensures multiple security layers for the entire system.
Every blockchain environment follows and thrives due to the consensus. The architecture is carefully designed and the consensus algorithms power the entire architecture.
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