Blockchain is a method for storing information in a computer network, which is a continuously growing list of computer records called “blocks” linked together and encrypted cryptographic. Each block contains information about the previous block and is verified for time. This provides chronological integrity of the chain back to the first block. This technology is designed to guarantee security by its own design because it does not allow modification of the data. Thus, transactions between two participants can be recorded in a way that is sustainable and verifiable.Once validated and saved, no block can be changed without changing all of the next blocks.
Transaction, in block technology, consists of several major parts.
Hash – The whole transaction is collected in a string. A hash function is used for this collection. This translates into a unique code that can not be duplicated and can be recognized on it. Example of a transaction hash, recorded in the cryptocurrency Blockchain: 4a5e1e4baab89f3a32518a88c31bc87f618f76673e2cc77ab2127b7afdeda33b.
“Entries” – Address or addresses from which the amount used in the transaction was received.
“Outputs” – Address or addresses to which the amount used in the transaction was sent.
An “electronic signature” is created by the private key of the sender or senders. It proves that their address or addresses belong and that they are the owners of the quantities dispatched.
“Fee” – Amount sent to the “digger” that processed the transaction.
“Address” is a public key and should not be confused with the IP address.
There is no need to have only one sender or one recipient per transaction.
The Miner in the block technology, takes care of confirming transactions and organizing them over time.
When a user publishes a transaction on the network, upon receipt, the miner first checks the validity. He does this by checking an electronic signature attached to the transaction. This “signature” is impossible for counterfeiting because the key is unique. This key is generated by the sender’s software and recorded on a hard drive.
If the transaction is valid, the digger records it in the Block, along with other received and valid transactions.
The “Digger or Miner” is called this because, for every block he creates or “digs”, he is rewarded by the crypto-system that he digs. He is rewarded because, in order to create a block, he has to solve a mathematical problem in addition to adding valid transactions.
It takes a lot of time, even with powerful hardware and is easier to solve with more and more powerful machines that perform more experiments in less time. If too many diggers are included, the system adjusts itself to make calculations more difficult. The aim is to be able to distribute the prize, not a digger with many powerful machines, to dig all the crypto by itself. This would result in full control of the system by this miner and decentralization will be lost.
Simplified article for easy understanding provided by Worthyblog.com