The Blockchain is a public ledger which is used to keep the record of Bitcoin transactions or the transactions made in some other cryptocurrency.
There are three essential technologies used in Blockchain and none of them are new. Instead, it is their arrangement and application methods that are new.
These technologies include:
- Cryptographic keys
- Distributed Network
- Record-keeping and network security.
In this article, we have tried to make clear as to how these technologies cooperate to secure the digital relationships.
Technologies Used in Blockchain – Cryptographic Keys:
Suppose, two individuals need to make an online transaction. Each of them holds a public and a private key. Both the keys are in an encrypted form.
The principle motivation behind having a public and private key is to create a digital identity reference. The Identity of a client depends on the blend of two keys.
The blend of these keys is additionally called “digital signature”, which, consequently, gives a strong control of possession.
However, having strong control of possession is not enough to secure digital relationships. While authentication is solved, it must be consolidated with a means of approving transactions and authorization.
In Blockchains, this starts with a distributed network.
The concept of distributed networks can easily be understood with the “falling tree in the forest” example.
If a tree falls in a forest and we have cameras to record the event, we can positively say that the tree fell since we have the visual confirmation. Same can be said in regards to distributed networks.
A substantial piece of bitcoin Blockchain is a huge system of validators – similar to the cameras in above example – where they reach an agreement that they all witnessed the similar event in the meantime. But instead of cameras, they utilize mathematical verification.
To put it plainly, the size of a distributed network is critical for the security of the system.
Distributed networks are one of the primary elements of “Bitcoin Blockchain“. At the time of writing, the system is secured by 3,500,000 TH/s, more than the top 10,000 banks on the planet combined.
The System of Record Keeping and Security:
Lastly, cryptographic keys are consolidated with the system to create a super useful form of digital interactions. The procedure starts with taking sender’s private key, then making a declaration that he is about to make a Bitcoin transaction — and finally appending his private key to the recipient’s public key.
With regards to the earlier example of falling tree, a realist may come up with the question, why there were dozens of PCs with cameras, holding up to record whether or not a tree falls.
Now, translating the same question in blockchain terminology, how do you attract the computing power for the maximum network security.
With blockchains, clients are offered special rewards in return for giving their PC’s processing power to secure the system. Which, ultimately, pulls in an extensive number of clients offering their machines’ computing power. The more the power, the more secure the system.