Blockchain technology is the hallmark of astonishing IT influx that has surfaced new ideas for supporting online activities. A virtual transaction is a new trend that is attracting a lot of attention. People find it easy to log onto the internet and access everything just in a matter of clicks.
BLOCK CHAIN is the breakthrough in virtual currency world and with the aid of a decentralized network of systems, a validating transaction is the most appealing and trusted algorithm.
- The concept of Blockchain mining technology can be very easily understood from the example that if for e.g. you are supposed to compile a document and simultaneously, acquire input from other colleagues who are accessible over the internet. If you have drafted the report and now you send it to a colleague, means you cannot perform anything unless the doc is sent back and you review it. Lacking concept of a shared database, which virtually can be accessed at the same time by both the persons. Now, the same concept is applied by financial institution while the payment is deposited and later processed and made to the beneficiary and similarly in other modes of payment as well. One example of shared database virtually by two people at a time is Google doc or Google sheet.
If the interaction has legal authenticity and validation and it needs to be conducted virtually, the concept of sending and receiving information one at a time is bypassed by the idea of Blockchain. Blockchains have facilitated the dynamics of the shared database over many networks that play an active part to verify, authorize transactions.
What Are Blockchain Nodes (blockchain mining)
In the blockchain system, Nodes are playing a vital role in validating the transactions by voluntarily connected computers.
- They are administrators who in return may get Bitcoins so, they enthusiastically verify the transactions. Technically, this whole operation of nodes is called MINING of Bitcoins.
- The blockchain concept has been adopted by many look-alikes of bitcoins.
How Blockchain Smart Contracts Work
Smart contracts help in any transaction that carries value and mitigates the need for extra formality. It enforces all the legalities and principles in essence but facilitates the whole process.
- Like for e.g. if you are trying to acquire a legal document you must adopt legal procedure and carry out all the steps from filling out fees of legal advisor to seeking the advisor advice, and waiting for the legalities to verify and confirm the entire procedure of verification. But in contrary, smart contracts can resemble to ATM machine, you use your Bitcoin and upfront get the document of your desire, in the backend all the formalities have been fulfilled by default.
What Are Blockchain Payment, Transaction and Confirmation
- Over the number of bitcoin exchanges, values of bitcoin can be quoted. The payments are made either by debit/credit card. Also, cash can be used to make transactions.
- In a blockchain, the transaction that takes place are well known to be virtual and do not have any physical existence.
Let’s take an example of Bitcoins and make it easier to comprehend. The transactions have their unique addresses on which they are distinguished and they fluctuate. These transactions are kept in ledgers or virtual database called block chains. In order to process any transaction, you must have at your disposal a private key and address that are given to the holder of Bitcoin. These private keys and addresses are sequences of numbers and letters.
- The transactions often take some time to execute as it will be validated over the blockchain network.
- Also, at a time it carries fee-related to the transaction.
- Bitcoins are divisible by Satoshis. And it is valid to perform a transaction as small as 5430 satoshis.
OTHER USES OF BLOCKCHAIN
Blockchain facilitates many aspects of our daily issues and it ensures transparency the primary concern of most people. It helps basically in disposing of activities pertaining to finance, as it is the wired network of database and you can also get the glimpse of this, from the essence of smart contracts.
- It was also utilized in recent dealing with Syrian refuge crisis and also to cater the frauds in voting to quote few examples of its commercial use.