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Myths, Realities and Future

make it impractical to modify the data or content of a single block without interven­

ing with all the others. In that digital record, information is kept in a network of dis­

tributed system nodes, and all logged transactions are crystal clear to each associate

of the system network (Kosmarski, 2020).

10.2.1  Blockchain Architecture

A Blockchain architecture consists of various parameters that can provide secu­

rity for the secure transfer of money, property, etc. without involvement of a third

party. The architecture consists of elements like computers or nodes that are used

for handling the transactions done on the records, information or systems. The

Blockchain architecture involves the following components, which are shown in

Figure 10.1:

• Transactions.

• Blocks.

• Peer-to-peer (P2P) network.

• Consensus algorithm.

10.2.1.1  Transactions

Transactions form the most minuscule construction blocks of a Blockchain system.

They customarily consist of a receiver address, sender address and value. A standard

credit card can be considered a good example of a transaction. The holder trans­

fers the value by digitally signing the hash engendered by integrating the anterior

transaction and the public key of the beneficiary. The transaction is then publicly

promulgated to the network, all the nodes independently hold their own facsimile

of the Blockchain, and the currently known “state” is calculated by processing each

transaction as it appears in the Blockchain. They are distributed to each node in the

form of a block. As the transactions are distributed throughout the network, each

node is independently verifying the transactions that are in process.

FIGURE 10.1  Blockchain architecture.