More businesses all over the world are integrating Blockchain technology as its potential becomes more apparent. So how does this technology work, you may ask? Let’s attempt to demystify Blockchain technology. There are three leading technologies that form Blockchain:
1. Cryptographic keys
2. A peer-to-peer network that contains a shared ledger
3. A means of computing, for storage of transactions and records
There are two kinds of cryptographic keys; private keys and public keys. These are vital for carrying out transactions between two parties. The two keys for each individual, provide secure identity and is one of the most important aspect of Blockchain technology. This identification is referred to as ‘digital signature’ in the cryptocurrency world and helps for authorizing and controlling transactions.
The digital signature is merged with the peer-to-peer network; a large number of individuals acting as authorities, each a consensus on transactions and other issues using the digital signature. When a deal is authorized, a mathematical verification certifies it, and the then a secured transaction between the two network-connected parties successfully concludes. To sum it up, Blockchain users use cryptography keys to perform digital interactions of different types over the peer-to-peer network.