HOW DATA IS STORED AND PROTECTED ON BLOCKCHAIN

Realize how blockchain data were held stable and safe in order to handle a continuously increasing database. 

Blockchain software operates by using the last block key in the next block to create an unbreakable and permanent chain. Data is held stable and safe to handle a continuously increasing database. 

But if more and more blocks are introduced, how are the details manageable? 

The trick to maintaining blockchain data and keeping it stable – is by an algorithm named hashing in conjunction with a centralized data framework identified as the Merkle Tree.

WHAT IS HASHING?

Once a transaction has been checked and has been applied to a block in a chain, a hash algorithm is used to turn it into a series of specific numbers and letters, equivalent to what will be generated by a spontaneous code maker. 

Then several transaction hashes will be merged, and the hash algorithm will be used to generate another specific hash. The process of combining many transactions into different hashes continues until just one hash exists – the 'source' hash of several purchases.

What makes hashes unique, and a critical protection aspect for blockchain software applications is that they function only a certain way. Although the same data would still generate the same hash of numbers and letters, it is difficult to 'un-hash' or reverses the cycle by using numbers and letters to decode the initial data.

If the hashing method is replicated with the same transactions, the identical hashes will be generated. 

This enables anybody utilizing the blockchain to verify whether the data has not been tampered with, as every alteration in some aspect of the code would result in a new hash, impacting every compilation of hashes all the way. It's known as the Merkle Tree.

Merkle Trees aims to dramatically reduce the amount of data needed to be processed and distributed over the network by summarizing a series of hashed transactions in a single root hash. Because each transaction is hashed, then merged and hashed again, the final root hash would always be a standard size.      

When we put our details on a ledger, it allows us to determine whether or not we want to disclose our details. 

It makes our online payments now more secure, because while we may also be turning over some of our personal details through these transfers, the blockchain-based software helps us to retain control over who can access it.