Why is blockchain important? We can explain this problem by starting with the application fields of blockchain technology.
There is no doubt about the security of the blockchain, which plays an important role in ensuring data security and financial security. The reason is: new blocks (with new information) are always added to the end of the chain. Every time a new block is added, a corresponding digital signature or hash is generated, which is a series of numbers and letters. Imagine all sorts of secret mathematical codes. When a block is added to the blockchain, if an amount or number in the block is changed, these signatures will also change.
If a hacker wants to tamper with the data of a block in the blockchain, he must make corresponding changes to all the information before and after the block.
Blockchain technology can also eliminate middleman links, help companies save money and get more benefits from it. With a blockchain platform, businesses can more directly verify and execute secure transactions. Transactions could theoretically be completed without lawyers, bankers, brokers, and other intermediaries, and in a more interactive manner, since anyone within the chain could make changes to the data.
How does the blockchain work ?
Regarding the working principle of the blockchain, it is easiest to understand from the publicity of the blockchain. Blockchain is based on distributed ledger technology. In a peer-to-peer network, everyone who generates these ledgers can see the same information in each block
In a digital network, transactions recorded on one computer or node are visible to all other computers. That is, everyone can see the same data.
This is also the reason why blockchain technology is difficult to hack. No single computer controls data alone; changing data in one block requires corresponding changes throughout the chain. Everyone has an automatically updated copy; any changes need to be verified by everyone in the network. And, with the introduction of programmable code (first proposed by Ethereum co-founder Vitalik Buterin, a Russian-Canadian), blockchain technology can be used to create "smart contracts" that execute agreements when certain conditions are met.
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