The Computers In The Network
Since there is no single authority that controls the entire network, pretty much anybody can join that network, and members of that network will stay anonymous.
Blockchain is a secure way to store data, where data is divided into blocks, and the blocks are connected in a chain, hence the name „blockchain“. But let’s see how does blockchain actually work. The best way to explain it would be with an example.
Let’s say that you have bought something from an online shop.
The blocks store information about the purchase, so for example: date, time and the amount.
The blocks also records who is doing the transaction, so in this case it would be you and the online store.
These blocks won’t store your real name, but rather a unique digital signature, something really similar to username.
Each of these blocks also has a unique security code called „hash code“, and each block also contains the hash code of the block before it.
Hash code is created by a math function that takes digital information and produces a code out of it. We need to know that:
Here is an example of what hash code could look like:
If somebody would try to change just a small piece of the information inside of the block, even if it’s just a comma or spacing, the math function would generate completely new hash code.
So for example, the previous hash code would change into something completely different like this:
This happened because each block contains 2 hash codes, one hash code is the unique code of that block, and the other hash code is the hash code of the block before it.
So, the next block in the chain still has the old hash code of the block before it.
In order to restore the chain, a hacker would have to recalculate every block in the chain after it, and that would take enormous amount of computing power, which is why data in the blockchain is almost impossible to change and this is what makes blockchain so secure.
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