In this series, we’ll create a private blockchain on which we may store data and link it together in a chain. But before we get started, we need to understand what a blockchain is, how it works, and what is required to create one.
Why is a blockchain important
Blockchain technology has a long history, going all the way back to 2009 when Satoshi Nakamoto used it to create the bitcoin cryptocurrency. Both blockchain technology and bitcoin have a wide variety of definitions (as well as misinterpretations).
A blockchain, or original block chain, is a continuously expanding list of records, or blocks, that are connected and safeguarded using cryptography, according to Wikipedia. Or maybe the best way to think of a blockchain is as a shared database that holds a list of every transaction that has ever been made on the network.
The blockchain, a distributed computer system with high consensus, was made to withstand any alteration of data after it has been recorded. This makes blockchain potentially appropriate for the logging of events, the keeping of medical records, and other record-keeping tasks like managing identities, processing transactions, tracing the provenance of goods, or voting.
Dissecting the blockchain architecture
Transaction: This is the fundamental building block of every blockchain. Multiple inputs and outputs make up transactions. We can ascertain the balance of users’ wallets both before and after transactions by comprehending the inputs, outputs, miner fees, and amount transmitted.
Wallet: Blockchain identity is the means by which you formally introduce yourself to the world, in this case, the blockchain world. Wallets, addresses, and keys are a few crucial components that make up blockchain identities.
Signature: We use what is referred to as a “digital signature” to verify transactions and allocate ownership. For every transaction carried out on the network, signatures establish proof of ownership.
Network: A decentralised peer-to-peer network makes up the blockchain network. The blockchain is able to do without third parties because to the concept of a network.
Consensus: The blockchain bases decisions on consensus. In essence, the consensus is an idea that is executed using a variety of algorithms. These algorithms represent various strategies for attempting to reach consensus more quickly. Consensus algorithms include things like proof of work, proof of stake, and DBFT (Delegated Byzantine Fault Tolerance).
Hashing: A hash is a type of digital fingerprint that is specific to each piece of data. On a Proof-of-Work blockchain, a miner must repeatedly perform the hashing process in order to find an acceptable signature (i.e. proof of work). To put it another way, it involves repeatedly entering a random string of digits into a hashing formula until a desired output is obtained.
Block
Understanding the concept of a block is crucial if we want to create our own private blockchain. The cornerstones of the blockchain are blocks. However, what a block actually is might not be what you anticipate. The word “Block” is a fascinating way to think about the information it stores.
Summary
We’ve now gone over some of the fundamental ideas behind blocks and blockchain. With this essay, I hope to provide you with the essential knowledge and abilities you need to succeed as a blockchain developer.
