Analysis of Blockchain and its Working Principle

Blockchain is currently booming technology, which links the people over the world to do future finance through various types of cryptocurrency. Blockchain is a decentralised technology where people are connected in peer-peer network and data are shared in a distributed manner. The data in the block depend upon the type of blockchain used. For example, number of transactions are made in to block, each block is validated and these validated blocks are connected to previous blocks, because each block contains the data of the previous block and thus it makes a block chain architecture. Since this technology deals with numerous users, there is few issues regarding security, non repudiation, consistency and power supply while communicating between the users in the blockchain network. In this paper, the overall working principles and the algorithms used to subdue the above mentioned limitations in the blockchain technology are discussed and analysed. As in case of security, Elliptical Curve Cryptography (ECC) is used. For non repudiation, hashing algorithm in which particularly SHA 256 is used. For consistency, consensus algorithm is used. In real time various consensus algorithms are used but only Proof of Work (PoW) and Proof of Stake (PoS) algorithms are used widely.