Structure and Design

A blockchain is a decentralized, distributed, and often public, digital ledger consisting of records called blocks that are used to record transactions across many computers so that any involved block cannot be altered retroactively, without the alteration of all subsequent blocks. This allows the participants to verify and audit transactions independently and relatively inexpensively. A blockchain database is managed autonomously using a peer-to-peer network and a distributed timestamping server. They are authenticated by mass collaboration powered by collective self-interests. Such a design facilitates robust workflow where participants’ uncertainty regarding data security is marginal. The use of a blockchain removes the characteristic of infinite reproducibility from a digital asset. It confirms that each unit of value was transferred only once, solving the long-standing problem of double-spending. A blockchain has been described as a value-exchange protocol.A blockchain can maintain title rights because, when properly set up to detail the exchange agreement, it provides a record that compels offer and acceptance.

Blockchain Architecture explained

A blockchain is an open financial ledger or record in which every transaction is authenticated and authorized. A blockchain is designed as a decentralized network of millions of computers, commonly referred to as nodes. It’s a distributed database architecture in which each node plays the role of a network administrator who voluntarily joins the network. Since there’s no centralized information in a blockchain architecture, a blockchain is literally impossible to hack.

  • Cryptography — Blockchain transactions are verified and trustworthy because of complex computations and cryptographic proof between the parties.
  • Immutability — Records in a blockchain can’t be modified or deleted.
  • Provenance — It’s possible to trace the origin of each transaction in the blockchain ledger.
  • Decentralization — Every member of the blockchain structure is able to access the entire distributed database. Unlike in a centralized system, a consensus algorithm is responsible for network management.
  • Anonymity — Every member of the blockchain network has a generated address, not a user ID. This preserves the anonymity of users, especially in a public blockchain.
  • Transparency — The blockchain system is unlikely to be damaged as it takes enormous computing power to completely rewrite the blockchain network.