Figure 1.8: Blockchain or a linked chain of blocks
Thus, the integrity of the data is maintained and the data once added
can be considered as tamper-proof. Please note that the nonce or
“number only used once” is a randomly generated number for each
block and is mostly used in cryptographic communication and
information technology.
1.6.1 Mining
We all know that Blockchain is a distributed ledger with more than
one owner. Now saying so, the following questions come up:
How the transactions would be validated?
Which among the owners would be responsible to validate the
transactions?
Even if some of the owners agree to do the job, what would
they gain from such an intensive process?
Well, the answer is that all the Blockchains have a decentralized
consensus process to validate the transactions where all or more
than one parties get involved. For the Bitcoin network, the owner of
the nodes themselves participate to earn a fraction of the token. So,
mining is a process of the validation of transactions, adding them to
the ledger, and confirming the same to the rest of the nodes in the
network. Mining is intentionally designed to be resource-intensive
and difficult, so that the number of blocks found each day by the
miners remains steady and the spam attacks could be controlled.
So, mining serves the following two purposes: