What is Blockchain? How you can trace transactions of Blockchain?

What is Blockchain?
Blockchain is a technology that enables transferring digital coins/assets from one individual to another individual.


What is Blockchain? How you can trace transactions of Blockchain?


Technically, Blockchain is a
  1. Open, Distributed ledger consisting of chain of transactions,
  2. Continuously updates the ledger with new transaction,
  3. Links new transaction to the previous old transaction with a key.
To understand the concept of Blockchain easily and in a simple way, I have fragmented the definition of Blockchain into 3 parts. Before we start, consider the scenario as described below.

Scenario A. Let’s say we have a network of 4 persons - A,B,C, & D who wants to transfer money to one another as shown below.

What is Blockchain? How you can trace transactions of Blockchain?


Now, few transactions take place between them and are recorded in a ledger. In simple terms, the ledger is a record of financial transactions.

LEDGER
A -> B $100
B -> D $50
D -> C $20


Part 1- Open and Distributed Ledger:

These set of transactions/records are published publicly and thus it is known as Open ledger. Everyone can see all the transactions in the open ledger. Also, everybody in the network (In this case - A, B C and D) knows that how much each of them have.

This open ledger is distributed across all the nodes in the network. Thus A, B, C, and D - all of them have a copy of ledger and anyone that participate in this network can hold this ledger which consists of chain of transactions. As ledger is now distributed and open to everybody, it removes the need for centralized banks which holds the ledger.


Part 2

Let’s say, that one more transaction takes place between C and A as shown below

C -> A $10

Now, for this new transaction to be added to the ledger, firstly it must be validated by miners. Here we assume that A and D are miners.

 

Who are miners and what exactly they do?

Miners are responsible for validation of each new transaction that occurs and adds it to the ledger.

Miners compete among themselves to be the first one to take this unvalidated transaction and validate and put it into the ledger. The first miner that will be able to do that will get a financial reward in form of Bitcoins and transaction fee(In this case - Person A is rewarded).

In order to first take the transaction and add it to the ledger a miner needs to do two things,-
  1. Validate the new transaction
  2. to find a hash – a product of a cryptographic function – that connects the new transaction with its predecessor.
To find this hash and to verify the completeness, accuracy, and security of currencies’, miner needs to invest a vast amount of computational power and use highly technical methods.


Part 3

Once a miner has validated the transaction, they add it to their ledger. This miner will now publish the solution and broadcast it to the entire network. The miner would say that here is the validated transaction and here is the hash that enables everyone on the network to take it and add it to their own ledger. Here is how the updated ledger will look like

LEDGER
A -> B $100
B -> D $50
D -> C $20
C -> A $10

As this transaction is validated, there is no point in trying to solve this transaction again and get a reward. So, all miners will immediately take this transaction and add to its own ledger. Now, as the network is distributed, each of them in the network will have the same copy of ledger. Once again all miners will look for another transaction to work on in a hope to get the reward next time.


How to trace transactions of Blockchain?

Now, we know what is blockchain and how ledger looks. Now, what if I tell you that you can check all your transactions for a particular address. Didn’t get? Let me make it simpler.

Let’s say that you are transferring BTC from your Zebpay to Koinex. In order to transfer BTC, you will always be asked for an address at which you want to transfer it. So, as here you want to transfer to Koinex account, you will have to scan QR code and provide the address of it to Zebpay so that they can transfer BTC. Hurray, you have transferred your BTC and soon it will be deposited into your Koinex account.

I know you are eager for your BTC to be reflected on Koinex account. Kindly note that transfer of BTC from one address to another takes some time. But, then how to check the authenticity of these transactions in this meantime? Will my BTC be transferred or not? Don’t worry as I have a quick solution for this.

To check details of your transaction all you have to do is paste your BTC address (in above example, it's Koinex BTC address) here - StalkOwl Crypto Blockchain.

What is Blockchain? How you can trace transactions of Blockchain?


What is StalkOwl Crypto Blockchain?





StalkOwl Crypto Blockchain lets you know blockchain history of any address. It lets you know much more such as
  • Number of blocks that have been transferred to a particular address
  • How much BTC you own
  • How much BTC you have spent
  • Balance
  • Ledger history of your BTC address
  • Status of your BTC transfer ( Process/Pending)

So, hurry up and check your Blockchain details now. Also, you can Download StalkOwl Crypto Android App for quick access from mobile.

Share this amazing tool with others so that they can use it too. Are you a crypto enthusiast? Do you love using tools that make your task easy? Feel free to let us know in comments

I strongly recommend this article that you should check next - Set Price Alerts for Bitcoin, Ethereum & Litecoin in India Using StalkOwl.
What is Blockchain? How you can trace transactions of Blockchain? What is Blockchain? How you can trace transactions of Blockchain? Reviewed by StalkOwl on January 05, 2018 Rating: 5

No comments