{"id":6504,"date":"2023-09-22T11:07:54","date_gmt":"2023-09-22T11:07:54","guid":{"rendered":"https:\/\/www.bsetec.com\/blog\/?p=6504"},"modified":"2024-10-08T13:57:31","modified_gmt":"2024-10-08T13:57:31","slug":"blockchain-for-beginners-understanding-the-basics-in-laymans-terms","status":"publish","type":"post","link":"https:\/\/www.bsetec.com\/blog\/blockchain-for-beginners-understanding-the-basics-in-laymans-terms\/","title":{"rendered":"Blockchain for Beginners: Understanding the Basics in Layman’s Terms"},"content":{"rendered":"\n
\"blockchain<\/figure>\n\n\n\n

Over the past few decades, Blockchain has been the techy buzzword. Every Hollywood star was talking about NFTs<\/a>, investing in Bitcoins<\/a>, Crypto Wallets<\/a> and so on. But what is all the buzz about? Are we missing out on something potential? Yes, Blockchain will revolutionize the whole world as the internet did. Basically, it is going to play a major role in Industry 4.0 (Fourth Industrial Revolution). But, everything about blockchain is more complex! Well, we have got you covered, here is a brief blog post and we are happy to break down what is blockchain in layman’s terms, easily understood by all.<\/p>\n\n\n\n

Blockchain for Begineers<\/h2>\n\n\n\n

What is blockchain? The term “blockchain<\/a>” comes from the way the information is stored. Instead of being stored in a single location or server (centralized), the data is divided into blocks and distributed across a network of computers, called Nodes. Each block contains a list of transactions or data, and it is linked to the previous block, forming a chain which makes blockchain.

Once a block is added to the chain, each block has a unique identity number (Hash) and will not be able to tamper with the information stored in it. If someone tries to alter the information in a block, the UIN will change, alerting the network to the tampering attempt and maintaining transparency<\/a>. Even though a block is added, the same record cannot be altered in all the nodes, making it a failed attempt to tamper with the blockchain network<\/a>. The blockchain <\/strong>is a public ledger, meaning that anyone can view the information stored. This helps to build trust and accountability, as all transactions can be traced and verified by anyone on the network online. <\/p>\n\n\n\n

Components of Blockchain<\/strong><\/h4>\n\n\n\n

Each chain <\/strong>is based on three components: <\/strong>blocks, nodes, and miners. <\/p>\n\n\n\n

What is meant by Blocks? <\/strong><\/h2>\n\n\n\n

Clusters of data act as the chain\u2019s links are called blocks, and include two important numbers called nonces and hashes. When a block is created, 32-bit Nonces whole numbers are generated, where hashes are 256-bit numbers linked to the nonce to identify the specific data – block\u2019s data. Once the first block is created, its nonce generates a hash, at which point the block is considered signed and permanently bound to the nonce and hash. This makes the block\u2019s data cryptographically secure. <\/p>\n\n\n\n

What are Nodes?<\/strong><\/h2>\n\n\n\n

Nodes <\/strong>participate in a blockchain by using algorithms. When a new node joins a blockchain, it is given its own copy of the chain, and in order to make additions or changes to the chain as per approval in the blockchain network. For example, if an N1  node creates a new block B1, that B1 is sent to everyone on the network, and the other nodes confirm that the block is visible and hasn\u2019t been tampered with, This communal term is called \u201cconsensus,\u201d and blockchain is highly secured. <\/p>\n\n\n\n

Who are Miners?<\/strong><\/h2>\n\n\n\n

Blockchain miners are responsible for \u201cmining\u201d the blockchain\u2019s <\/a>data, creating new blocks by means of consensus. Find the right nonce-hash combination in a single block, as each block has a unique identity number and when a change is finally executed and accepted by the network, the miner is rewarded financially. <\/p>\n\n\n\n

How data is stored on the blockchain?<\/strong><\/h2>\n\n\n\n

Data can be stored in blockchain in a couple of methods,<\/p>\n\n\n\n