We have a new Elephant in the Room and it is called Blockchain. It’s becoming the buzzword of the decade yet a few people know what Blockchain is? So what exactly is Blockchain?
Why everyone is talking about that it is the next big thing in the Tech Industry. It would become a trillion Dollar industry. In the coming years, it will rule the tech space and the next Apple, Amazon and Google will emerge out of it. Blockchain and Artificial Intelligence will become the two major players of the Tech Space.
Now you must be wondering how blockchain works. To answer this question I have written this article wherein I will be telling you how Blockchain works.
HOW DOES THE BLOCKCHAIN WORKS?
Blockchain working can be catogarized into three layers.
1)Database Layer — The database Layer is append only Layer which means that once a data entry is added into the database it will not get deleted or changed in any form. This data can be encoded in the form of transactions. These transactions are bundled into blocks by validators. Each block contains a signature of previous block also known as the Previous Hash which is used for validating and verifying new data entries.
2) Network Layer — This network is made up of many individual computers that are connected on the network. These computers are known as the Nodes in the Blockchain Network. Every Node can keep a full copy of the shared distributed ledger which consists of Blocks of data. In order to make a transaction, a node can broadcast a new transaction among its peers. The Peers then pass along the transaction until every node in the transaction knows about it. The validators then performs calculation on the data and bundle it into the Blocks of Data. Then these Blocks can be updated and everyone in the Network can download these Blocks.
3) State Layer — This is the interactive Layer. The Web-based and Desktop-Based UI application can be made that provides user interface to the User. This layer can interact with either network layer of Database layer to either read Information from Network or send new Transactions.
Here’s a video of B9lab that will demostrate how Blockchain Works.
Stay Tuned for more Articles on Blockchain.
