You must have heard a lot about decentralized when it comes to Blockchain. Imagine the current system, in which communication over the internet relies on servers, and money transfers on banks. Blockchain helps us to get rid of all the middlemen and establishes a peer-to-peer network.
So the formal definition of Blockchain is a decentralized and distributed ledger that can be used for storing information in multiple locations without any centralized monitoring system. A ledger is a collection of accounts in which account transactions are recorded. There is no special privilege for one participant over another in this network. As a result, there is no single entity that governs and controls the network. It is the aim of the users of this network to maintain a blockchain that is free of attacks and trustworthy. The blockchain is kept on every machine in the network for this reason. This makes the blockchain a distributed ledger.
What makes up a Blockchain?
- The transaction: Any information that is recorded on the blockchain can be included here.
- The Block: Group of different transactions.
- The Chain: All the Blocks are linked to one another.