The blockchain architecture possesses multiple primary components: distributed ledger, smart contract, and public key cryptography.
Heaptalk, Jakarta — The public’s interest in crypto asset enhancement has continued to increase. The existence of the crypto industry cannot be separated from blockchain technology. As is well known, this technology underlies the growth of digital crypto assets, spanning the bitcoin, Ethereum, and Non-Fungible Tokens (NFT).
A blockchain is a distributed database or ledger shared among a computer network’s nodes. Through this technology, the transaction performed is stored in a block and spread into the peer-to-peer network, whereby every node preserves a ledger copy. As a database, a blockchain stores information electronically in a digital format.
Unlike a database in general which arranges the data into tables, blockchain structures its data into chunks (blocks) to be assembled. This data structure inherently builds an irreversible timeline of data when implemented naturally.
The existence of a risk-free and transparent system brings plenty of benefits that blockchain technology owns for diverse industries. This technology has also made the internet of value, including accurate permanent transactions guarantee and the simplicity of token ownership redeployment.
The blockchain architecture possesses multiple primary components, consisting of:
- Distributed ledger – a shared database on the blockchain network that stores transactions, including shared files that are accessible to be edited by people in the team.
- A smart contract – the program stored on the blockchain system runs automatically when predetermined conditions are fulfilled.
- Public key cryptography – security features to uniquely identify participants in the blockchain network to generate two sets of keys for network members.
The features of Blockchain technology
According to the aws.amazon.com, the primary features of blockchain are:
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Decentralization
Blockchain’s decentralization refers to the transfer control and decision-making of the central entities, including individuals, organizations, or groups, into the distributed network. The decentralized blockchain network utilizes transparency to diminish the need for trust among the users. This network also obstructs users not to exercise authority or control over one another, which impacts network functionality degradation.
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Stipulation
This feature will not allow users to tamper with the transaction noted in the shared ledger. In effect, users must augment a new transaction to reverse the error, and both transactions are visible to the network when the transaction contains some blunders.
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Consensus
The blockchain system establishes rules regarding user consent to record transactions. They can also record new transactions only when the majority of users in the network give their approval.
