We have already discussed in the earlier section about Blockchain and Use of Blockchain. There are majorly three technologies which work together in creation of these Blockchains. These three technologies are not something new, however, the way they are applied now is new. The technologies involved are basically named as
- Private key cryptography;
- A distributed network with a shared ledger; and lastly
- An incentive for serving the transactions on the network, keeping the record and security
Let us see how the three technologies blend together for securing the digital relationships.
1) Cryptographic Keys
A private and a public key is help by the two people who are trying to do a transaction over the internet.
Creation of the secure identity reference is the fundamental purpose of the component in question. Identity is dependent on the ownership of blend of both public as well as private cryptographic keys
We can observe the combo of these keys as a handy consent which prove to be a highly valuable digital signature. Hence these digital signatures prove to be a solid control of proprietorship.
However, it is evident that only a strong hold over the ownership is not just sufficient for securing the digital signatures. Thereafter we need an authorization to be clubbed with the solved authentication and hence there is the need of distributed network.
2) A Distributed Network
In order to explain the requirement and merits of a distributed network let us observe an example:
If there is an accident on road and if there were cameras to record it happen then we can surely say that the accident took place. This is because we have proof of that certain event happening live. Even though we may not have certain facts that why and how it happened.
Similarly, in the case of blockchain we can compare the cameras with the mathematical calculations used by the miners, who sit and work together as the witness of an event happening. The event which happened is a transaction. In other words, we can say that with Blockchain, its network size matters a lot for the security purpose. This feature can also be considered as one amongst the most lucrative qualities of blockchain.
3) Network Servicing Protocol
There might be a question which may arise that why would there be at all so many cameras installed to witness an accident? If compared to blockchain the question in consideration would be that why and how would someone attract any power of computing for making the service network secure and safe?
A reward is awarded to those computers that offer the power of their computer processing in the blockchain. With blockchains the public requirements are clubbed with self-interest of the person himself. The aim of the protocol in this network is to remove the possibility that one coin may not be reutilized in different transactions on the parallel node. When various miners working parallelly on the same transactions give their consent only then a new block is added else is rejected.