In literal translation, blockchain is a continuous chain of blocks. It contains all records of transactions - even tulip bulbs in a botanical garden. Unlike conventional databases, these records cannot be changed or deleted, only new ones can be added. The identity capabilities of the technology are used in the public sector. The blockchain-based voting system https://peiko.space/service/blockchain-development-services guarantees transparency and integrity of the results. The ability to quickly obtain government services greatly simplifies the interaction of citizens with government agencies.
Blockchain is also called distributed ledger technology, because the entire chain of transactions and the actual list of owners are stored on their computers by many independent users. Even if one or more computers fail, the information is not lost. Assets can exist in the real world, like an apartment or a car, or they can be completely digital. When people transfer assets to each other, it's called a transaction. Transaction accounting is the recording of all transfers of an asset or the right to it from one person to another. And here a key question arises: How reliable and confidential is the mechanism for confirming transfers? In blockchain, the registry of owners is not stored on a single organization's server. Its copies are simultaneously updated on multiple independent computers connected over the Internet. As a consequence, in blockchain, registries with asset ownership data cannot be faked. After all, this data is stored on the computers of a huge number of network participants. If some participants turn off their computers and some of their transactions do not show up, or their records are incorrect, this will not affect the operation of the network. A consensus procedure, i.e. agreement, would restore the correct information.A block is a record in a distributed registry of several transactions. It reflects who transferred what amount of assets to whom and when.
All blocks are sequentially connected into one consecutive chain. The blockchain is unbreakable because each block contains a link to the previous block. Blocks cannot be changed or deleted, only new blocks can be added. In this way, it is always possible to reconstruct the history of a particular asset's transition from hand to hand and to know its current owner. Miners perform several functions in the blockchain:
- Store copies of the blockchain and thereby protect information from loss or tampering;
- Confirm transactions;
- Verify transactions that other miners have logged.
As a rule, there is no limit to the number of miners. The more of them, the better - such a network is more reliable. Everyone can become a miner. To do that they need specialized computers and software.
As a rule, there are commissions from all participants of transactions recorded in a block, and remuneration from the network itself. The network generates this reward according to a certain algorithm.
This is what usually happens with cryptocurrencies: the reward is a certain amount of cryptocurrencies themselves. They arise literally out of thin air and end up in the miner's account. This is how new units of virtual money are issued, and the total amount of virtual currency increases. But more often than not, there is a restriction: when the amount of coins reaches a certain maximum, their issuance stops. Further miners can only work for a fee from the participants.
Purse is a special identifier. It keeps a record of the participant's account status (and it is not necessarily money, but any assets). A wallet also allows you to know the entire history of transactions of a particular participant. Most often such wallets are anonymous - they do not allow you to find out who exactly accepts or sends assets from it. Electronic wallet data and blockchain transactions are encrypted. How do you ensure that information about transactions and wallet status is correct, complete, and confidential? In the face of anonymity, how do you access your assets? There is an entire science of how to solve these problems - cryptography. Encryption is one of its methods.
