A blockchain is a chain of blocks that contains data or information. A blockchain network makes use of public and private keys in order to form a digital signature ensuring security and consent. Once the authentication is ensured through these keys, the need for authorization arises.

Blockchain allows participants of the network to perform mathematical verification and reach a consensus to agree on any particular value. While making a transfer, the sender uses their private key and announces the transaction information over the network.

A block is created containing information such as digital signature, timestamp, and the receiver’s public key. This block of information is broadcasted through the network and the validation process starts. Miners all over the network start solving the mathematical puzzle related to the transaction in order to process it.

Solving this puzzle requires the miners to invest their computing power. Upon solving the puzzle first, the miner receives rewards in the form of bitcoins. Such kind of problems is referred to as proof-of-work mathematical problems.

Once the majority of nodes in the network come to a consensus and agree to a common solution, the block is time-stamped and added to the existing blockchain. This block can contain anything from money to data to messages. After the new block is added to the chain, the existing copies of the blockchain are updated for all the nodes on the network.

Types of Blockchains
There are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.

Public Blockchain

A public blockchain is a permissionless ledger and can be accessed by any and everyone. Public blockchains allow communities worldwide to exchange information openly and securely. Anyone with access to the internet is eligible to download and access it. An obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly.

Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain.

Private Blockchain

Private blockchains are the ones that are shared only among the trusted participants. Private blockchains can run independently or can be integrated with other blockchains. The overall control of the network is in the hands of the owners. Moreover, the rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization etc.

Conclusion
Other than these few examples, the revolutionary technology of Blockchain holds a high potential for applications in many different industries and sectors. Blockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies.

While some industries have already started adopting blockchain in their businesses, many are still exploring the best possible ways to start with.