How does the blockchain work?

WebTalk

To answer this question, one can first of all hold on to the name. Blockchain is a chain (chain) consisting of individual blocks (blocks). The individual blocks are in turn filled with data. Every time a block is full, a new block is automatically created – so the chain expands by itself.  

Blockchain technology is the basis for many  cryptocurrencies  such as  Bitcoin . But you can not only manage digital money with it. Areas of application include supply chain, logistics and real estate, which can be found in many different blockchain companies and blockchain start-ups.

The blockchain is one of the  distributed ledger technologies (DLT) . This means that it is a digital distributed ledger. It is  decentralized : instead of one (central) point, it consists of individual, distributed blocks that combine to form a network.  

Blockchain: A distributed ledger technology

Blockchain is a distributed ledger technology (DLT). It can also be called a distributed and digital ledger. It is the basic technology for administrative processes of all kinds.

A look at the blocks

But that’s not all that explains blockchain. If we look into the blocks, we will find so-called hashes there. They are preserved in each new block and thus transport information further – from block to block.

The blockchain is therefore  forgery- proof : a blockchain hack is almost impossible (at most with a  51 percent attack ).  

In addition to the hash, the blocks contain more information, they store the transactions. These are messages that are sent once and then stored on the blockchain forever. The content of the transactions is less important here. Rather, it depends on when and how transactions took place – and whether they were found to be correct. The individual blocks also contain a time stamp.  

The Blocks: Hashes and Transactions

The blocks of the blockchain contain information. The hashes help transport the information. They also store transactions, which are messages that are engraved into the blockchain forever.

The distributed data is collected in blocks arranged chronologically “one after the other”.

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