How Blockchain Works?

Working Mechanism of BlockChain

There are three principal technologies that work together to create a blockchain technology. They are:

1)Private key generation
2) A distributed network with a shared ledger
3) Network transaction incentives, record keeping, and security

We will verify the above process below:
or example, two-person Poshan Pandey and Ram, They want to transact over the internet, then each of them have public and private keys. These keys are used to generate a digital signature which is the digital identity of that person. This digital signature provides them the strong control of their data but that is not enough to secure their data. Approving transactions and permissions are also to care for. For blockchain, it starts with the distributed network. When digital signature or cryptographic key(in case of bitcoin) are combined with that network a different interaction between networks emerges. The process begins with the emerging of the first person's private key with the public key of the second person. Then a block containing the digital signature is sent to all the nodes of the system. The nodes that serve the network records the history of every transaction. When the majority user vote for a single block than a new block is added to the chain. It is the rule of the block for which the transaction is valid or invalid. And the process of validation is carried for each block in the blockchain. Any needed rules and incentives can be added when the nodes are in rest condition.

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