Blockchain is not only the platform behind the success of Bitcoin but also an application to a variety of industries, which is called the "key" to building platforms by many professionals. It is undeniable that Blockchain is one of the breakthroughs in technology and broadly applicable in a wide range of industries and fields.
Learn more: What is the application of Blockchain ?
1. User make a request for a transaction (purchase, sell, exchange)
2. The request will be broadcasted to peer-to-peer (Peer to Peer) networks that consist of computers (called nodes) connected to each other.
3. The computers in this system will validate transactions along with user information via algorithms on Blockchain.
4. Once the transaction is well confirmed, they will be added to other transactions that create a block on the Blockchain - where it will exist and can hardly be modified.
5. Finish the transactions
How does the Blockchain platform work ?
It is obvious that Blockchain uses algorithms to broadcast the data without any need of intermediaries to validate the information. In addition, there are many independent nodes with the ability to verify information, and all information in Blockchain can be changed or added to only when it reaches the consensus of all the nodes involved. The biggest difference is that Blockchain is still functioning normally even when a part of the system collapses. Computers or nodes still work to protect the information and the Blockchain from losing data.
Learn more: Blockchain and Applications
Blockchain operation examples
Say that A wants to buy an item from Company B. Both have their own Bitcoin wallets (or other Altcoin wallets). The transaction will be generated from A's wallet via a "request order" sent to Blockchain so that there will be a reduction in the balance of A’s wallet yet an increase in Company B’s balance.
The computers (Nodes) system on Blockchain will verify the changes using algorithms. When this recommendation is made, it will have to go through a series of verification steps (by different nodes) by checking the "ledger" to see whether A has enough Bitcoins as needed to make the transaction or not. If everything is guaranteed, the special Nodes called the Miners will "pack" A's suggestion with other confirmed transactions and create a new Block then add it to Blockchain “book’’. Successful transaction!
With the event of Blockchain as well as milestones when the personal computer or the Internet emerged, this system will change the way we understand and view the society, marking an important turning point, opening up new trends in many fields such as finance, banking, logistics, electronic communications, auditing, accounting, etc. It is undoubtedly that sooner or later, every large-scaled company and corporation will build up their own Blockchain, creating the global wave of blockchain in the digital age.