The blockchain is indeed one of the best inventions of mankind. Though the identity of the person associated with the invention of this architecture is not known clearly. It is said to be one person or a group of persons. This is a brief guide as to how the blockchain architecture works.
The blockchain was originally designed for the bitcoins. But after discovering the immense potential of this architecture, people began to think of applying this architecture to various other applications of day to day life.
The blockchain architecture is a digital ledger. This is used to record the various digital transactions. Not just transactions but anything that holds value can be recorded using this ledger.
Steps involved in a blockchain transaction
These are the steps involved in a blockchain transaction.
Requesting a transaction
Someone requests you a transaction. The transaction needs to be processed.
The request that is sent needs to be transmitted through a wide range of network which is P2P in nature. There are a lot of computers in this P2P network known as nodes.
As the request is getting transmitted through this network, it needs to be validated. The pre-designed algorithms validate your request. The transactions that are verified are stored in the form of documents and records.
Added to ledger
Once the transaction is complete, the new block of data is added to the ledger. The ledger stores the transaction.
Added to blockchain
The newly appended ledger is added to the blockchain. This data gets stored permanently.
Applications of blockchain
These are the various applications of blockchain technology.
- Best suited for B2B ecosystems
If you have an idea that the idea of blockchain is only limited to cryptocurrencies, then you need to explore the various applications that can work on the blockchain. In case, you are validating a supply chain management firm, then this blockchain methodology can be used to check if all the goods are on track and delivered properly.
- Used for voting
The areas like voting which are often subjected to criticism due to their opaque nature can try out the benefits one could obtain by the usage of the blockchain. The problems of bogus voting can be eliminated to a greater extent by the usage of blockchain tech.
- Energy supply
There is a lot of shortage in the energy supply. This problem can be eliminated when one uses the blockchain architecture to meet their energy demands. The usage of energy can be kept under check.
- Assure quality
When an error is detected along the chain, it can revert you back to the main chain head thus, assuring you of the quality. The various firms that work on the process of quality assurance can use this tech.
Accounting is one of the main tasks that every organization is mandated. By the usage of blockchain tech, the minor errors one could encounter while accounting can be prevented.
This is how blockchain works and these are some of the things you need to know about blockchain.