Transactions Using Blockchain Technology

  Abitha       November 27, 2020

Blockchain technology’s main feature is the way it confirms and authorizes transactions. It works as a block that contains all the information gathered. This block contains relevant information like a digital signature, a timestamp, and others. But it does not have access to the identities of individuals involved in a transaction.

This block is then transmitted across all of the network's nodes using a private key and matches it with the block thus the transaction gets completed successfully.

Advantages Of Blockchain Technology

Highly Secure

The digital signature feature is used to conduct fraud-free transactions making it impossible to corrupt or change the data of an individual by the other users without a specific digital signature.

Decentralized System

By using this technology we need not make the approval of regulatory authorities like a government or bank for transactions.

With this technology, we don't need the approval of regulatory authorities like a government or bank for transactions. On the other hand, blockchain transactions work with the mutual consent of users in a safe and faster mode.

Automation Capability

It is programmable and can generate systematic actions, events, and payments automatically when the criteria of the trigger are met.

Blockchain is a combination of three leading technologies:

Cryptographic keys:-These keys(Private key and Public key) help in performing successful transactions between two parties.  Each individual has these two keys, which help them to create a secure digital identity. And it is the prime feature of blockchain technology.

A peer-to-peer network containing a shared ledger:-The digital signature is merged with the peer-to-peer network in order to reach a consensus on transactions. So it results in a successful secured transaction between the two network-connected parties.

Computing to store the transactions and records of the network:-So to sum it up, Blockchain users employ cryptography keys to perform different types of digital interactions over the peer-to-peer network.

In a variety of ways, Blockchains can be set up to operate by using different mechanisms to secure transactions. Bitcoin is an example that shows how huge Blockchain Technology has become important. The founders of this technology are also trying out numerous other applications to expand Blockchain’s level of technology.