We are going to use Bitcoin’s blockchain as an example.
Bitcoin’s blockchain can process up to 7 transactions per second. All these transactions are tied up and added to the blocks.
If we consider that new blocks are created every 10 minutes, it means that a single block can contain up to 4000 transactions. If there are more transactions, they will be added to the next block.
The Bitcoin blockchain stores the data details about transactions, such as the sender, the receiver and the amount of coins.
The block has the Hash and to understand what the hash is, the best would be to compare the hash to a fingerprint. It is unique for every block, and it identifies the block and all of its contents.
The third part of the block is the hash of the previous block. It creates the chain of the blocks because every block has the hash of the previous block and this is the technique that makes the blockchain so secure.
Adding new blocks to previous ones creates a chain of blocks, blockchain.
What could be stored on blockchain?
Digital assets like money to music to art can be stored on a blockchain. They won’t be stored in a central place but will be distributed across a global ledger using the highest level of cryptography. When a transaction is conducted, it’s posted globally across millions and millions of computers.
Out there in the world, there is a group of people called miners, and they have massive computer power in their fingertips, 10 to 100 times bigger than the whole of Google worldwide. They are letting the entire system run and allow us to benefit from this new technology.
Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.