Adverbcoin.Io Blockchain Overview

The Best Next-gen Decentralized Blockchain, Staking, NFT Marketplace

To better understand the technical aspects of a blockchain, it is helpful to explain the concept through an example. When an individual deposits a sum of money into a banking institution, the individual trusts that the sum will be there until they decide to exchange it for goods or services. The individual trusts the bank will have an accurate record of the transaction, such as the amount, depositor, date, and time of the deposit. More broadly, society relies on central repositories, such as banks or governments, to collect, maintain, and protect the recorded actions of individuals or institutions.

Blockchain differs from centralized repositories in that it decentralizes the source of trust. An individual deposits funds into a digital wallet and the value is captured on the blockchain. If this individual purchases a digital song, the transaction is captured in the blockchain along with the change in fund level in the digital account. The bank is not required as a trusted third party. The trustworthy record is recorded in the blockchain shared by all the parties on the network.

Blockchain Parts

Blockchains contain three core parts:

Block: A list of recorded transactions over a period of time. Transactions can represent virtually any type of activity from registering a land deed to a single purchase. Any rules relating to the block itself are established when the network is first created. For example, the maximum number of transactions in a block or the size of each block can be limited .

Chain: When the block reaches its maximum size of transactions, it is chained or linked to the preceding block through a hash as described in the section below. The hash value of one block is inserted into the next block. This makes a link between the new block and the previous block.

Network: The network is made up of nodes each containing a complete record of all transactions on a blockchain. No centralized "official" copy exists and no node is "trusted" more than another. The data integrity is maintained by the blockchain being replicated on all of the nodes.