How Does Blockchain Technology Works

Understand Blockchain Better!

👩🏻‍💻 We are going to find answers to all your questions in this blog. We have made this blog as simple as we could for every reader to understand “How a Blockchain Technology Works? What is a blockchain? and What are the Types of Blockchain?”

What is Blockchain?

🔹 Blockchain is distributed ledger technology. It is the technology backing Bitcoin and other cryptocurrencies.
🔹 A blockchain network comprises blocks that are immutable, time-stamped, and distributed across multiple computers.

Features of Blockchain

🔹 Decentralized Technology
🔹 Immutable (Tamper-Proof)
🔹 Incorruptible Ledger
🔹 Consensus Mechanism
🔹 Transparent & Private
🔹 High Transaction Speed
🔹 Enhanced Security

The Functioning of Blockchain

➡️ A transaction is initiated

➡️ Creation of digital signature

➡️ Verification of authenticity

➡️ Private key cryptography

➡️ Creation of transaction block

➡️ Validation process

➡️ Miners participate in the network

➡️ Miners are awarded Bitcoins

➡️ Majority wins

➡️ Block is added to the chain

Types of Blockchain

Public Blockchain

🔹 Permissionless ledger or blockchain
🔹 Anyone can participate in the network
🔹 Not secure unless rules are framed strictly

Private Blockchain

🔹 Permissioned ledger or blockchain
🔹 Only trusted parties can participate
🔹 Best fit for enterprises or organizations

Federated Blockchain

🔹 Also known as the federated blockchain

🔹 Shared among multiple participants
🔹 Participants work together in regulating the network

Hybrid Blockchain













🔹 A combination of public and private blockchain
🔹 Offers complete freedom and controlled access
🔹 Users can participate entirely in the network activities



🔔Learn More About –> How Blockchain Technology Works