The technology of today has introduced newer and better concepts that are enhancing the user experience by offering new features. However, some are designed specifically to serve users with excellent results. In an era where every aspect and concept is slowly traversing to becoming digital, online transactions have become common among people and this is where Blockchain is used to protect from potential frauds with a simple concept put into effect.
Blockchain: The Concept and Entire Process Explained
As security attacks are becoming common, the requirement for technology defending attacks and securing the user data rises. Blockchain is basically a medium that helps digital information to be distributed but not copied. Therefore, each piece of data belongs to a single owner.
Blockchain distributes the information in the form of multiple blocks that are added to form a chain and each block is owned by different owners and hence, the authentication changes. This stops hackers from hacking into the entire system. The cryptography techniques used and complex key for each block already makes it difficult to crack the code and hacking multiple blocks in a chain to find the right information is time-consuming.
Because of the security constraints Blockchain succeeds at fulfilling, more and more apps are looking forward to implementing it in their transactions to guarantee excellent security to their users.
Moreover, marketplace apps will benefit from this technology the most. For example, the app solution provides a platform to connect service providers and customers online, e.g. an app like eventbrite, customers pay for the booking a ticket for an event online, and hence, the transactions are required to be protected. With the help of the concept that Blockchain follows, businesses secure the transactions and provide excellent support.
How Does It work?
Consider Blockchain as a digital ledger. This ledger is distributed over peers and every authenticated peer has access to the entire ledger.
A transaction is created with a private key that is derived using cryptography methods and is not shared with anyone in the network. Then, this transaction is launched in the network using flooding protocol, also called gossip protocol to all peers and the transaction then gets validated at each peer. This process is required to perform for verifying the transaction.
Once the transaction is verified and validated, it gets included in a block and it is confirmed. This is the first confirmation. The block gets added to the network.
The block is finally added to the chain and the next block in the chain automatically gets the block cryptographically linked with it. A hash pointer is used to mend the blocks together which acts as a chain. The transaction is confirmed for the second time and the block gets its first confirmation.
The transactions get reconfirmed every time a new block is added into the chain. Usually, a transaction is required to be confirmed at least 6 times to get finally confirmed.
Building up a network that is secure with the concept of cryptography and is excellent at delivering results, Blockchain-based development is sure to increase with the innovative and useful concept that can be applied over any digital entity in today’s world to ensure privacy is protected by every means possible.