Blockchain nodes
A node is a computer connected to the Blockchain Network. Node gets connected with Blockchain using the client. The client helps in validating and propagating transactions onto the Blockchain. When a computer connects to the Blockchain, a copy of the Blockchain data gets downloaded into the system and the node comes in sync with the latest block of data on Blockchain. The Node connected to the Blockchain which helps in the execution of a Transaction in return for an incentive is called Miners.
Disadvantages of the current transaction system:
- Cash can only be used in low-amount transactions locally.
- The huge waiting time in the processing of transactions.
- The need for a third party for verification and execution of Transactions makes the process complex.
- If the Central Server like Banks is compromised, the whole system is affected including the participants.
- Organizations doing validation charge high process thus making the process expensive.
Building trust with Blockchain: Blockchain enhances trust across a business network. It’s not that you can’t trust those who you conduct business with it’s that you don’t need to when operating on a Blockchain network. Blockchain builds trust through the following five attributes:
- Distributed: The distributed ledger is shared and updated with every incoming transaction among the nodes connected to the Blockchain. All this is done in real time as there is no central server controlling the data.
- Secure: There is no unauthorized access to Blockchain made possible through Permissions and Cryptography.
- Transparent: Because every node or participant in Blockchain has a copy of the Blockchain data, they have access to all transaction data. They themselves can verify the identities without the need for mediators.
- Consensus-based: All relevant network participants must agree that a transaction is valid. This is achieved through the use of consensus algorithms.
- Flexible: Smart Contracts which are executed based on certain conditions can be written into the platform. Blockchain Networks can evolve in pace with business processes.
Introduction to Blockchain technology | Set 1
Blockchain could be a data structure that could be a growing list of information blocks. The knowledge blocks area unit coupled along, such recent blocks can’t be removed or altered. Blockchain is the backbone Technology of the Digital CryptoCurrency BitCoin.