Apr 21, 2019 23:30 UTC
Apr 28, 2019 at 17:26 UTC
Why is Blockchain Called Blockchain?
Blockchain technology seems to be the latest buzzword of the modern tech scene and for good reason. Ranging from its diverse use cases to its robust security, from its immutability to its immense accountability, blockchain gives a lot of reasons for us to choose this fantastic form of technology. While we discuss about blockchain and its benefits a lot around here, have you every wondered why blockchain is called blockchain?
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For understanding why blockchain is named so, it is very important to understand what blockchain really is and how it works. So let us have a look at how that is.
How Blocks Are Chained To Secure Information
In a blockchain network, the information is stored in the form of sets of data called blocks. The block size of any blockchain usually varies. The Bitcoin blockchain, for example, has a block size limit of 1 MB.
For the purpose of blockchain scalability, most blockchain networks try to adjust the block size based on the needs of that network.
The Monero blockchain, for example, has a system of dynamic scalability, where the block rewards diminish every time the block size exceeds the median size of the preceding 100 blocks.
So, a certain amount of information is stored in a block. Now, each block is chained to the previous one by bearing a unique identification, called a hash, as well as the hash of the previous block.
The result is a combination that chains the block inexorably to all other previous blocks. This ensures high security as no one block can be corrupted without dismantling the entire chain.
Therefore, as it is a chain of blocks, the technology is called blockchain.
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