Blockchain can be considered the basic unit of the entire crypto structure. The digital revolution that started a decade earlier with the launch of cryptocurrencies, led the world to such heights that people began to show more and more interest in digital currencies. Nowadays a new word related to crypto is trending. The term is blockchain; from time to time, blockchain has proved to be a leader in the entire decentralized structure. With the use of blockchain, many problems can be solved and different organizations are constantly using the benefits of such facilities. So, if you are planning to trade or mine Bitcoin, then you may visit the bitqt app.
Blockchain is designated to be the most secure cloud platform in the terms of storing sensitive data and information. Many organizations are switching to this facility due to the benefits and much more available on the blockchain platform. Blockchain is made up of several layers that help in its successful functioning. In this article, we are going to discuss the functioning of these six layers and will try to clear the doubts related to blockchain.
Functioning of blockchain-based on layers
Blockchain functions with the help of its six layers. These layers are described here one by one.
- TCP/IP network
This is the most common protocol as far as an internet user is concerned. The internet that we use runs on this common protocol. Without this protocol, there is no possibility of the running internet and thus no decentralized application will function. Thus, this can be referred as to the building or supporting block of blockchain that also uses the network for its functioning.
- Peer-to-peer protocols
These protocols are referred as to the top of the internet layer. Another name for these protocols is P2P. this ensures effective communication between end-users without needing any central server. This ensures that a single person acts like both a client and a server. As a result, the centralization of information and its processing can be prevented effectively. This protocol was at first used for file sharing and later various applications adopted its use. This can be divided further into two parts namely structured P2P, wherein connections related to the network are fixed and the other unstructured P2P which has a not-so-fixed mechanism.
- Cryptographic algorithms
The working o blockchain is encrypted with these algorithms which can be divided into public/private key encryption, hash function, and digital signature. These all encrypt the data and ensure the safe and secure delivery of data and services. The role of cryptography is essential in blockchain related processes like crypto as it prevents the chances of data leaks.
- Consensus algorithms
The functioning of blockchain depends on the choice of consensus. The consensus decides how the blockchain will act and processes the input to the required output. These can be referred to as the results of famous problems discussed and then later researched for solving every level of problems thus associated. Multiple consensuses can also be provided for the smooth functioning of data and algorithms.
- The execution layer
The real capability of blockchain is decided at this layer wherein the interface between developers and other blockchain capabilities clears the air on this. The basic operations of blockchain that is transactions, sending and receiving data, executing different contracts, and many more are done at this layer and thus real functioning of blockchain is done at this layer.
- Applications
The last layer of blockchain is applications. The logic of blockchain is held in the hands of this layer and is also most exposed to different cyber-attacks. Blockchain applications are also decentralized and thus their security is related to that of blockchain as a whole.
