Working of Blockchain Technology With Example
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1. Objective – Blockchain Working
Today in this Blockchain tutorial, we will be discussing how does Blockchain Technology work. Moreover, we will see the working of Blockchain with the help of an example. At last, we will discuss Blockchain a distributed network.
Blockchain technology is one of the best technological inventions of the decade might be one after the internet itself. It provides you with a platform where you can exchange money without the need of any central authority.
So, let’s start working at Blockchain Technology.
2. Working of Blockchain With Example
To understand Blockchain working, let’s take an example, imagine you & your friend bet $50 on the color of car your third friend would buy, you bet it for white & your friend bets it for Red. There are three ways to deal with this bet:
Explore reasons to learn Blockchain
- You can trust each other with your words.
- You both can turn it into a contract. Where in this contract both of you are prone to pay the amount and if anyone takes a foot back winner will get additional money to cover the legal expenses? This method doesn’t seem to be a good method to deal with transactions.
- Both of you can involve a third party into your deal and both will give $50 to that trusted third party and at the end, the winner would receive all the money by the third party.
If we consider both the first and second case, they do not seem to be appropriate because of the reason:
Have a look at advantages and disadvantages of Blockchain
- You can’t trust each and every person u bet as each and every one is not a friend of your and even if he is you can’t risk it.
- Getting into a contract is also not a conventional way because this technique will require a lot of time and money, which is not appropriate to invest if the reward money is too less.
The Blockchain technology makes sense because it offers you with the liberty of this third party which is relatively safe, fast and economical too.
Working of Blockchain: in a way described below
Program working on Blockchain will ask you both to invest $50 each into the software. The program will keep this money safe with himself and will check the winner after this decision the program will provide this whole $100 to the winner. Each and every person associated with the bet can check this transaction details as this function is working on blockchain which cannot be changed. This example seems to be a really short amount and does not make that much of a sense but imagine the whole process taking place for selling off a whole company or house.
Firstly, when the individual makes a call to transfer money following things will happen:
- That request for the transaction first represents online to the block itself.
- Once that information receives by the block then it again sends to the parties of the users.
- Once this request received by the parties it then analyzed and approved by all the parties.
- After approval of request that new block can now officially added to the chain.
- After this block is added the money is transferred to the second individual.
3. Blockchain a Distributed Network
Since the advantage and requirement for a disseminated system can comprehend by the ‘if a tree falls in the timberland’ thought explore.
Now, In the event that a tree falls in a backwoods, with cameras to record its fall, we can be entirely sure that the tree fell. We have visual proof, regardless of whether the particulars (why or how) might be vague.
A significant part of the estimation of the bitcoin blockchain is that it is a vast system where validators, similar to the cameras in the relationship, achieve an agreement that they saw a similar thing in the meantime. Rather than cameras, they utilize numerical confirmation.
To put it plainly, the measure of the system is imperative to secure the system.
Explore features of Blockchain
So, this was all about Working of Blockchain Technology with example. Hope you like our explanation.
Hence, in this Blockchain tutorial, we learned how blockchain technology works & its main characteristic. Moreover, we saw the working of Blockchain with an example & also discussed cases related to it. Lastly, we discussed Blockchain as a distributed network. Next, we will see Oracle Blockchain Cloud Service. Furthermore, if you have any query regarding the working of Blockchain, feel free to ask through the comment section.
See also- Blockchain in Genomics