With the rise of computers and technology, ascertaining transactions are real or fake has become a nuisance. As the entries can be edited to the suitable needs, it is easy to manipulate the data and present something different entirely. This is where blockchain comes in.
Block-chain technology forbids the manipulation of data, making it more reliable. The term was brought to light back in 1991, almost three decades ago but found its way only after bitcoins became famous to use this technology. In simplest terms, blockchain can be defined as a chain of blocks that holds the information which is non-editable and strung together. The digital information is known as the ‘block’ stored in a public database known as the ‘chain’.
Since there is no central authority to manipulate data, this allows for data exchange to be made directly without the involvement of third-parties. The peer-to-peer working is the most formidable strength of block-chain. Data can only be added when operating with time sequences and cannot be edited at any later stage. This makes block-chain a good tool to keep an eye out of any frauds. Any update made to the blockchain is validated against strict criteria defined by the blockchain protocol and added to the blockchain only after a consensus has been reached among all participating members on the network.
After a transaction occurs, it is verified by the networks of computers in the manner it is said to have happened. All details are checked in a matter of seconds, after getting the positive identity on the transaction, all the data, including the digital signatures and time, etc., is uploaded to a block. The transaction is now confirmed at this stage. Any transaction occurring in this manner will get an added block after every transaction. A unique number is allotted to the block for its retrieval on a later stage and is added to block-chain.