Comment on page
Author: Hyperon Chain Published: May 29, 2022 Updated: May 29, 2022
Blockchain is a decentralized, distributed, and immutable ledger secured by cryptographic hash algorithms. The blockchain ledger consists of chronologically chained and encrypted blocks of synchronized data across the peer-to-peer network. Data is formed into blocks, and each block is appended to its previous block, connected by a hash. The blockchain first stores the data in backward-linked blocks and then verifies the blocks through a distributed consensus process to maintain security, privacy, and transparency throughout the blockchain network.
Blockchain technology comprises four key components:
- Peer-to-peer networks
- Consensus mechanism; Crypto-economics and Game theory
- Blockchain data structure
Properties of Blockchain:
Decentralization: In blockchain technology, data is decentralized, ensuring that each node, which is part of the blockchain network, has consistent data. Unlike centralized data authorized by a trusted authority, a blockchain network allows transactions to be completed without the need for a centralized authority. This reduces transaction costs, minimizes the workload on central servers, and eliminates the need for multiple intermediaries, which can increase transaction costs.
Persistence: In a blockchain network, transactions are inherently stored in blocks to create a decentralized and distributed chronological chain. Each node contains the blockchain ledger, providing recovery from data loss and ensuring persistence and consistency by storing data in different nodes, as well as detecting missing data or falsifications.
Anonymity: Unlike the banking system, where personal details of transactions are stored by banks, the blockchain network allows individuals to interact with generated wallet addresses, keeping personal identities hidden through the use of multiple addresses. There is no central authority storing private data of a node. Transactions are publicly verified, and privacy is maintained through the use of addresses for each transaction, ensuring that miners cannot identify the owner or issuer of a wallet address. Additionally, a central party does not request a user's private data.
Transparency: The blockchain network ensures transparency for the entire network by providing distributed and consistent transaction records. In industries such as supply chain and logistics, transparency is essential for reducing fraud and establishing a trustworthy system.
Audit-ability: The blockchain network includes timestamps that allow users to trace transaction details easily. The transparency and traceability of transactions enhance auditability.
Time Reduction: In the blockchain network, each software contains consistent information, eliminating the need for a lengthy verification process. The presence of a single, agreed-upon version reduces time by avoiding lengthy processes for verification, settlement, and clearance.