Bitcoin and Blockchain Technology Infographic

Blockchain means many things to many people. For developer‘s it is the set of protocols and encryption technologies for securely storing data on a distributed network.

For business and finance it is distributed ledger and the technology underlying the world of cryptocurrencies, for technologists it’s the driving force for next generation of the internet, for others it simply a tool for radically changing society and economy as the lead us to a decentralized world.

Blockchain technology is fascinating many minds as the implication of this technology is truly profound. Blockchain enables people anywhere in the world to trust each other and transact within large peer to peer network without centralized management.

Protocols, cryptography and computer codes bring in the trust between the interacting parties. The blockchain uses a distributed network of computers to maintain a shared database. This database consists of a series of encrypted blocks that contain data.

The blockchain is a continuous link of such blocks which are secured using cryptography.Entries to this database is made by computers that all have copy of the database and they all come to a consensus before they can update the database.

The three essential concepts to understand the systems working includes  blocks and hashing, mining and proof of work and distributed consensus. This makes blockchain tamper proof and the data stored is generally considered incorruptible.

Blockchain security methods include public key cryptography. A private key in the blockchain network is like a password that gives the owner access to his digital assets.

Any computers connected to the blockchain network and using a client can perform the task of validating and relaying transactions. Each of the mining computers gets the copy of the blockchain.

The mining nodes validates the transactions appends them to the block they are building and then broadcast them to other nodes. If a blockchin technology’s true potential is to be realized, it should work in synergy with data analytic and internet of things.

Our friends at Bitcoinfy.net created a stunning infographic on Bitcoin and Blockchain Technology, helpful for all the beginners who want to know more about cryptocurrency.

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Courtesy of: Bitcoinfy.net

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