Demystifying blockchain
Now that we have the basic concepts of what a blockchain is, and what makes up a block chain, let us delve into how a blockchain actually works to provide transparency, security and immutability and consequently why the technology encourages trust.
A blockchain consists of a number of parts:
- Clients that make requests for things to be stored on the blockchain
- Nodes which keep a copy of the block chain
- Miners which work to add new blocks to the blockchain.
In this step we will begin by looking at nodes.
Nodes
In the context of blockchain technology, a node refers to any computer or device that is connected to the blockchain network. Nodes play a crucial role in maintaining the decentralisation and integrity of the blockchain system. Each node stores a copy of the entire blockchain ledger, which contains records of all transactions that have ever occurred on the network.
Nodes perform various functions within the blockchain network, including:
- Validating transactions: Nodes validate new transactions by ensuring they meet the consensus rules of the blockchain network before adding them to the blockchain. Propagating transactions: Nodes broadcast validated transactions to other nodes on the network, ensuring that all nodes have access to the latest transaction data.
- Maintaining the blockchain: Nodes store a copy of the blockchain ledger and continuously update it by adding new blocks of transactions. They also participate in the consensus mechanism to agree on the validity of new blocks.
- Participating in consensus: Nodes participate in the consensus process, which is the mechanism by which agreement is reached on the validity of transactions and the order in which they are added to the blockchain.
There are different types of nodes in a blockchain network, including full nodes, light nodes, and mining nodes. Full nodes store the entire blockchain ledger, while light nodes store only a subset of the blockchain data, relying on full nodes for transaction verification. Mining nodes are responsible for creating new blocks in proof-of-work blockchain networks through the process of mining.
In the next step we will look at hashing, which is the process which makes data written to the blockchain permanent.
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