Blockchain is a list of records growing continuously which are linked and secured using cryptography. Records are verified before adding to the list as a transaction known as a block and once the transaction is complete its immutable. Companies are looking for a way to create competitive advantage through Blockchain technology. Though some of them still not have fully implemented Blockchain solution but early adopters of any technology will always adopt some standards and principles which will favor them most. So, becoming a part of this technology in its developing phase will always provide you an edge. When technologies like Blockchain get introduced, companies need to spend the time to adapt it and understand how it fits their requirements so what Blockchain system is all about:
For anyone to perform transactions on Blockchain network, a blockchain wallet needs to be configured which comes with a pair of private & public keys allows the owner to exchange encrypted currency transactions. A Blockchain transaction contains the below elements:
Transactions entering the Blockchain network are validated against their scriptSig & scriptPubKey and if validation module returns TRUE then its added to the list of transactions and published as a block on the Blockchain ledger as shown below:
Valid transactions added as a block on the Blockchain distributed ledger as an input which will be published to all the nodes and the address B node will respond to it, post-execution, the address B wallet will be updated with the amount sent by A as a value of a transaction.
One of the main benefits of Blockchain is that it’s distributed across multiple networks, making it extremely hard to bring down as there is no single point of failure. Another crucial benefit is that Blockchain provides over distributed ledger software is based on cryptography and is programmed to be immutable means once a transaction is complete it cannot be changed. For example, a real estate purchased documented with a Blockchain ‘smart contract’ cannot be deleted or hidden by any authority, making the owner protected from malpractices.
Also, it eliminates the need of any mediator / third party to validate and execute the transaction which saves a huge transaction fee charges for business which are being paid as of today in a centralized ledger system.