You may have heard the word blockchain if you have been connected to banking, investing, or cryptocurrency in recent last ten years. It can be defined as record-keeping technology at the back end of the Bitcoin network. So if you are interested in knowing about blockchain, its features, and where is the blockchain stored, keep reading this informative article; I hope it will benefit you.
What is Blockchain?
Yes! Blockchain seems to be complicated and definitely could be, but its basic concept is straightforward. A Blockchain is like a database, and to understand a blockchain; it is necessary to explain its Database.
A database can be defined as the collection of information that can be stored on the computer electronically. Data or knowledge in terms of the Database is typically stored in a table so that it is easy to find and filter the specific information.
Critical Features of BlockChain
- Blockchain is a particular type of Database.
- It is somewhat different from a typical database in that it stores information, but the blockchains store data in the shape of blocks that are often linked with the chains.
- As a piece of new information enters into it, it goes into a new block. When the block is full of information, it will go into the old partnership, connecting the data linked with chains in chronological order.
- Different types of information can be stored in the blockchains, but the most common blockchain can be stored in the ledger for transactions.
- In bitcoin, blockchain is stored in a decentralization manner so that a single person or the group can control it.
- In decentralized blockchains, the data is immutable, which means it is irreversible; for bitcoins, the information is permanently recorded, and anyone can view it.
Storage Structure of Blockchain
The most crucial difference between the blockchain and the Database is its storage structure and format. A blockchain gathers the information and data in groups called blocks that store the data. Blocks have a specific storage capacity, and when the data and information fill it, it goes into the previous block, making a chain of data called the blockchain. New information is then stored in the new block and it will be added to the filled chain.
The blockchain is a distributed database that stores data in chunks and blocks linked together to form chains. It’s not just an ordinary storage system, though; because the data isn’t stored on one central server, it can never be corrupted or lost by hacking into any single location! This is true that all databases are blockchains, but all blockchains are not databases.
To understand the storage structure of blockchain, it is essential to know how it is implemented in terms of Bitcoins. Bitcoin also needs a set of computers for the storage of a blockchain-like Database. The blockchains for the bitcoins are the particular type of Database used to store bitcoin transactions ever made. Unlike most databases, all computers are not in one place in the bitcoins, and one person or group operates one computer or group of computers.
The bitcoin blockchain is in the shape of decentralization; however, centralized and private blockchains in the networks of a different set of computers are owned and operated by a single individual or company. Suppose one user wants to get the information from the bitcoin transaction record. In that case, the other nodes will cross-reference and easily indicate the incorrect data given by the wrong node. Therefore, this system helps establish the transparent and exact order of transactions.
Each node stores the full record of information in the blockchain in the blockchain since its origin. In a bitcoin transaction, the data is the complete history of bitcoin, as if there is an error in the data, it can be used by the different users and nodes to indicate to correct itself. In this way, no node in the whole network can change the information within the system. Therefore, the history of the transaction in each blockchain is irreversible and cannot be changed.
I am Lavinia by name and a financial expert with having a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.