Blockchain beyond the basics

Blockchain is a peer-to-peer network unlike server-client network model. It is a distributed ledger database. Participants in the network are miners and they are the one who will give consensus of those transactions.

We need to understand some terms to learn blockchain at ease. Public and private key are used for encryption to make secure communication. You have the private key and others have your public key. The communication between you and others are now secure. You have to keep private key secret and guard it well. You will encrypt message by using private key and others use your public key to decrypt it to read it. When others want to send message to you, they use your public key to encrypt message and send to you. You are the only one who can decrypt it with your private key.

Only public-private key can encrypt and decrypte messages. This is the heart of block chain.

Nouce is a number that design to use once to prevent duplication of a unique ID.

Hash is a function to convert any string to the same size. Hashing goes for only one direction. Hash is unique. Blockchain store Hash in the database instead of storing real data to save disk space. Hash in blockchain use SHA-256 to generate address and some other information to be used in the chain.

Mining is like mining gold because it is difficult to mine. Miners use their computer including power and processing to solve really difficult math problems. That is hashing to get a desire value in the hash such as hash starting with number 40. Miners is hashing and compare the results until they get it match the desire result.

Example of info to be used in block chain

Miners need a proof of work to be able to add to the block chain. Information above will be hashed before adding the to chain.

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