It is a common knowledge that Blockchain technology is going to make a huge impact in almost all industries in the future, and for convincing reasons, financial institutions are endeavoring to put this technology under test as well as invest in it. Therefore, it is important to understand the structure of blockchain and how it works.
Blockchain data structure
The blockchain data structure is an ordered, back-linked list of blocks of transactions. The blockchain can be stored as a flat file, or in a simple database. The Bitcoin Core client stores the blockchain metadata using Google’s LevelDB database. Blocks are linked “back,” each referring to the previous block in the chain. The blockchain is often visualized as a vertical stack, with blocks layered on top of each other and the first block serving as the foundation of the stack.
See also:What is Blockchain Platform ?
Each block in blockchain is recognized by a hash, generated by the cryptographic hash algorithm SHA256 on the block header. Each block also references the previous block, called the main block. In other words, each block has a parent hash. A series of hashes connects each block to its parent, building into a string that, if traced back to the first block, is called the genesis block.
The identity of the children blocks will change once the identity of the parent block does. When the parent is modified in any way, the parent’s hash changes. The parent’s changed hash necessitates a change in the “previous block hash” pointer of the child. This in turn causes the child’s hash to change, which requires a change in the pointer of the grandchild, which in turn changes the grandchild, and so on. This cascade effect ensures that once a block has many generations following it, it cannot be changed without forcing a recalculation of all subsequent blocks. Because such a recalculation would require enormous computation, the existence of a long chain of blocks makes the blockchain’s deep history immutable, which is a key feature of bitcoin’s security..
One way to think about the blockchain is like layers in a geological formation, or glacier core sample. The surface layers might change with the seasons, or even be blown away before they have time to settle. But once you go a few inches deep, geological layers become more and more stable. By the time you look a few hundred feet down, you are looking at a snapshot of the past that has remained undisturbed for millions of years. In the blockchain, the most recent few blocks might be revised if there is a chain recalculation due to a fork. But once you go more deeply into the blockchain, blocks are less and less likely to change.
In simple words, blockchain data structure makes it hard or even impossible to remove or modify a block. When someone wants to change it, participants in the network who have a copy of the existing blockchain can evaluate and verify the proposed transaction. Therefore, transparency and accuracy in transactions are committed.
How does Blockchain work?
A unit of data stored within a block can be represented by any value depending on the blockchain type. It might be an asset, a part of a company, a digital certificate of ownership, a vote in an election, or any other values.
Data is encrypted and stored in the block. An electronic encoding block also contains the encoded identifiers of the sender and receiver. For example, a block of e-commerce transactions will contain the identifiers of the retailers and the consumers.
As noted in the previous section of blockchain data structure, each block has a hash, whose role is to define the block and its content. Any changes inside a block will cause changes in hash. Thus, a hash also indicates changes to a block. In addition, the previous block hash is also included in a block. Say that there are three blocks in a blockchain, block 3 will contain the hash of block 2, and block 2 will contain the hash of block 1. Any changes in a single block can lead to the changes in hash of that block, making the whole chain invalid.
Hash is a great tool to determine data changes in blocks. However, the hash algorithm alone cannot ensure the safety of a blockchain. In order to optimize the security and safety of a blockchain, it is a must to mention Proof-of-work.
Proof-of-work (PoW), which is a piece of data which is difficult to produce but easy for others to verify, is used to prevent fraud. In the context of a blockchain, PoW is used to solve mathematical puzzles. For each puzzle successfully resolved, a new block will be added to the chain. On average, the expected block time is 10 minutes.
Together, the hash and PoW algorithm contribute to the security and safety of the whole blockchain.
See also:Blockchain Programing
FAQs
A blockchain is “a distributed database that maintains a continuously growing list of ordered records, called blocks.” These blocks “are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
How is data structure used in blockchain? ›
The blockchain data structure is an ordered, back-linked list of blocks of transactions. The blockchain can be stored as a flat file, or in a simple database. The Bitcoin Core client stores the blockchain metadata using Google's LevelDB database.
How does blockchain data work? ›
It's a type of distributed ledger technology (DLT), a digital record-keeping system for recording transactions and related data in multiple places at the same time. Each computer in a blockchain network maintains a copy of the ledger where transactions are recorded to prevent a single point of failure.
What is blockchain and structure of blockchain? ›
Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the “chain,” in a network connected through peer-to-peer nodes. Typically, this storage is referred to as a 'digital ledger. '
What is the data model of the blockchain? ›
The blockchain data structure consists of a chain of sequential blocks, where each block contains a limited number of transactions. As a result, you can attach new transactions to only one place: A block at the end of the chain. To secure the network against attacks, each block in a blockchain must be mined.
How is data stored in blockchain? ›
In a blockchain, data is stored in a decentralized manner across a network of computers or nodes where blocks are chained together. Each block stores transactions, and when a block is full, a new block is created and linked to the previous one, forming a chain.
Which is the primary data structure which is used in blockchain body? ›
A block in a blockchain is a fundamental component that carries crucial data about transactions. When a transaction occurs, be it the transfer of a cryptocurrency like bitcoin or a data exchange in a supply chain, the details are packaged into a digital structure known as a block.
What is the data architecture of blockchain? ›
Blockchain, at its core, is a decentralised, distributed ledger technology. Unlike traditional centralised databases, blockchain data architecture stores data across a network of computers (nodes) in a way that ensures security, transparency, and immutability.
How data is written to a blockchain? ›
📌 The answer is it's “append-only model", which means that once data is added to the blockchain, it cannot be altered or deleted. This immutability is achieved through advanced cryptographic techniques, such as hashing and digital signatures, which secure each block and ensure its integrity.
Is blockchain just a database? ›
A blockchain is a decentralized, distributed database or ledger that is replicated and synchronized across computers on a network. Since each computer holds a current copy of the ledger, the data isn't vulnerable to a single point of failure. The copies are updated and validated in parallel by every participant.
What are the primary layers of blockchain technology? Blockchain consists of five layers: hardware infrastructure, data, network, consensus, and application layers. These layers handle functions from data storage to user-facing applications.
What is the basic architecture of blockchain? ›
A blockchain needs 5 main layers in its architecture: Application Layer, Protocol (Consensus) Layer, Network Layer, Data Layer, and Hardware/Infrastructure Layer.
What data structure is a blockchain? ›
Blockchain is a Distributed Ledger Technology. It is a distributed and decentralized database and it is secured ever as compared to other technologies.
Who owns data in blockchain? ›
In public blockchains like Ethereum and Bitcoin, there is no single owner of the data. These blockchains operate on a decentralized and distributed network of nodes, and data ownership is distributed among the participants in the network.
What data does blockchain collect? ›
Such a record could be a list of transactions (such as with a cryptocurrency), but it is also possible for a non-public blockchain to hold a variety of other information like legal contracts, state identifications, or a company's inventory.
What blockchain data structure does ethereum use? ›
In blockchain technology, a block is a record of new transactions that have been added to the blockchain. Each block contains a unique code called a “hash” that allows it to be distinguished from every other block, as well as a “hash” of the previous block in the chain, linking the two.
What type of data structure is Bitcoin? ›
Bitcoin and blockchain have been used interchangeably in the past, but Bitcoin is just one financial application among many other use cases of blockchain technology. Blockchain stores a limited number of transactions (e.g., coin transfers) in a data structure called a block, which is in turn stored in a public ledger.
How is data stored and structured in Bitcoin? ›
A blockchain is essentially an expanding record of data stored in containers called blocks, with cryptographic validation to ensure tamper-resistance and transparency [1, 41] . Each block contains a timestamp and a link to the previous block, thus chaining them together in proper sequence from the genesis block. ...
What is the role of data in blockchain? ›
Data allows organizations to more effectively determine the cause of problems. Data allows organizations to visualize relationships between what is happening in different locations, departments, and systems.
