Do you know what Blockchain Architecture is? Read on to find out!
The eyes with which you’re reading has an extremely complex architecture. It’s a combination of various tissues working together to form an organ. All the organs add several other layers of architecture and work in unison so that a human body can function.
It’s common to witness architecture in almost everything that surrounds us. Technologies also have an architecture through which they function. Blockchain is no different but is highly intricate in its architecture which allows it to act as a decentralized ledger.
The Mystery Behind Blockchain’s Inception:
Many people think Blockchain’s invention was a recent phenomenon as people somehow think that Bitcoin and Blockchain are literally the same things. However, Blockchain & Bitcoin are not the same. In simple words, Blockchain is the technology and Bitcoin is its application. Bitcoin was invented under mysterious circumstances by Satoshi Nakamoto. Even the guy uses a pseudonym and no one really knows where he is at the moment.
The idea was to create a form of currency that was decentralized. Since the entire Blockchain architecture for Bitcoin is decentralized, no one can create discrepancies with ease within the system. If you’ve started to feel a little lost, don’t worry as we’ll try to list down each element of its architecture in detail:
The Basic Components of Blockchain:
Let’s discuss the basic components of Blockchain architecture as it will give you a basic map of how the technology is structured:
The image reflects how the process is undertaken and how nodes together verify any transaction that is being occurred.
1- Node:
Any user within the larger framework of Blockchain is considered as a node. A node can be seen as a separate entity within the system and each computer within the system can be seen as a node.
2- Transaction:
A transaction is the smallest building block in a Blockchain system. A single transaction contains important information such as records. The transaction will be different for each block and will have a unique transaction hash (A string of characters) and can be traced using the hash.
3- Block:
A set of transactions is called a Block. It’s kind of like how tissues in the human body combine to form an organ. A certain number of transactions collective form into a block. All nodes can access the block to get information.
4- Chain:
Varying blocks together join to form a Chain. The Chain has a specific order as it contains blocks that also have a set of transactions in a certain order.
5- Miners:
Miners play a central role in the entire Blockchain process. In essence, they are nodes that verify each transaction or any other command that’s added in the system.
6- Consensus Protocol:
A set of rules that define Blockchain’s operations.
So, the core components work together in cohesion to define a workflow. Theoretically, if a certain record or transaction is made, a new building block begins to form. Once more transactions are made, the block’s formation gets completed. These transactions are verified by nodes/miners and are accepted through Consensus Protocol.
Types of Blockchain Architecture:
The basic structure of Blockchain consists of the same core elements as described above. However, these components can be used in different types of overall architectures. The following are the types of Blockchain architecture:
1- Public Blockchain Architecture:
Blockchain systems such as Bitcoin, Electroneum & Ethereum fall under the category of Public Blockchain Architecture. Anyone can access the Blockchain system if someone has access to it. This can be seen as a purely decentralized system.
2- Private Blockchain Architecture:
A private Blockchain is similar to a public one when it comes to its components. However, the difference lies among the users. Only specific users in a Private Blockchain have access to the network. More participants can be included voluntarily. Private Blockchain Architecture is centralized as the network can’t be accessed by anyone else other than the participants.
3- Consortium Blockchain Architecture:
A consortium is a group of few companies that coexist together under a Blockchain Network. Certain users are given the privilege to control the network. This is partially centralized as numerous companies are joined together under the network.
Blockchain Architecture – A Decentralized Public Ledger:
A decentralized network has certain advantages that make all the information in a Blockchain network transparent and highly secured. Any information being added or removed or altered must undergo approval from each node or miners. This essentially means that the system is controlled by all the members within a Blockchain network. As long as the technology is being used it doesn’t matter whether it’s a public, private, or a consortium structure type. The transparency factor is applicable in all cases. If you’re interested in Blockchain technology or its application then let us know!
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