Manag., July-2018 – Q49
0. What is “Block Chain” in the field of information technology?
- Option : B
- Explanation : Blockchain was developed in 2008 by Satoshi Nakamoto, and was used as a core component of the digital currency, ‘bitcoin.’
Keeping the technical jargon aside, blockchain is simply a distributed and a writeonce- read-only record of digital events in a
chronological order that is shared in a peerto- peer network.
It records exchanges and transactions in a database that can be distributed and shared across authorized users that can add to it, when needed. But here’s what makes blockchain different - these authorized users can neither delete nor alter any record and no transaction can take place unless validated by all users.
How does blockchain work?
Blockchain is a peer-to-peer distributed ledger technology and has three major components:
1. Distributed network: The decentralized P2P architecture has nodes consisting of network participants, where each member stores an identical copy of the blockchain and is authorized to validate and certify digital transactions for the network.
2. Shared ledger: The members in the network record the ongoing digital transactions into a shared ledger. They run algorithms and verify the proposed transaction, and once a majority of members validate the transaction, it is added to the shared ledger.
3. Digital transaction: Any information or digital asset that could be stored in a blockchain could qualify as a digital transaction.
Each transaction is structured into a ‘block,’and each block contains a cryptographic hash to add the transactions in a linear, chronological order.
