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Many individuals are asking themselves, “What is blockchain?” Explaining Blockchain, it is a distributed database that makes it difficult to track, change and cheat the system. It is a digital record of transactions that distributes and duplicates data all over the entire network in blockchain Technology. There are Pillars of Blockchain technology. Thus, today we will discuss Everything About Pillars of Blockchain Technology.
The data is in the form of blocks in which each block contains several transactions which occur in Blockchain. The decentralization of data is managed by different participants and is called Distributed Ledger Technology(DLT).
A blockchain is a list of records that is called “blocks”. In these blocks, they interconnect each other through a diverse cryptographic mechanism. In addition, This block is known as the “Genesis Block”.This block contains three components which are data, hash of current block, and hash of the previous block.
The three pillars of Blockchain Technology are the main reason for the high growth and success of Blockchain.
Let’s discuss about them.
In this society of centralized management, we can take banks as an example. They keep all our data and information while we transfer money, we have to go through them. Likewise, They only have control over the entity, and we cannot access our money without their permission.
So, it is clear that normal services have control of the central authority. However, there are many troublesome for various reasons. Since one entity stores everything they are easy to hack. Similarly, if the system fails or is in maintenance, all our data or money can be lost.
On Blockchain technology, these things don’t happen. Because all data are distributed, a public ledger storing information is in the Blockchain. It has several computers(nodes) that store identical copies of the ledger. The data stored in Blockchain technology are updated regularly.
The data in Blockchain technology is in several different locations. Moreover, there is no central authority that keeps track of your information. If a hacker tries to hack into one of the nodes, then several nodes in different locations have an original copy. The data in blockchain transactions is compensated. This is the most important pillar among the three pillars.
The second pillar among the three pillars of Blockchain technology is where the data and information are transparent to the public. All of the information, which includes transactions between users is in a public ledger.
While using this system, the identity of the users is private through cryptography when you make transactions information public. In addition, it is more secure and has accountability in the system.
Due to the transparency system, it is impossible to make a fake transaction or be in shady business.
This is the third and final pillar on the list of Three pillars of Blockchain technology. So, to understand the workings of blockchain technology, we need to learn about its inner workings.
The information is always in a public ledger in blockchain technology. It is in the form of a block. Likewise, the information which you need to add to the block must be verified by miners. Therefore, miners solve complex computational problems to create and secure the block.
Hash is a fixed length of the alphanumeric string of characters. Every time a unique hash adds to each block, new and old hash functions connects with each other to form a chain. If information changes in hash block A, then hash block B should also have to change.
All three pillars of blockchain technology are very much essential to storing information on the system.
The use of blockchain technology is advanced as per the request of software and applications made of blockchain architecture.
Many new blockchain audit companies are emerging for the development of Blockchain Technology. They are hiring many Front end Blockchain developers and Back end Blockchain developers to make the system easier, faster, and secure. As a result, people are trying to invest in Blockchain technology.
People are becoming curious about this technology, and Blockchain Technology is the future of our society. All the data are secure and easy to manage.