WHAT IS BLOCKCHAIN？HOW IT WORK?

25/6/2021

WHAT IS BLOCKCHAIN？HOW IT WORK?

Traditionally a Blockchain is just one big database, a place where you can store data just like a hard drive. A Blockchain can record information about cryptocurrency transactions, NFT ownership or DEFI smart contracts . All recorded information is also known as digital ledger transaction. What is a digital ledger transaction? Digital ledger transactions are recorded with an immutable cryptographic signature called a Hash.

When cryptocurrencies moved from one wallet to another wallet all transaction is recorded. A wallet is just like your bank account on the Blockchain .To identify your bank account you have a bank account number and to identify your wallet you need a wallet address. Blockchain runs on multiple computers(NODE) that linked to each other all over the world.(Node links to each other is called a” NETWORK”).

Each of these node connected to each other and they continuously exchange the newest information on the Blockchain with each other.The Nodes actually store, spread and preserve the Blockchain data, because there is no centralized location, that why Blockchain is decentralized.