What does Technology of Blockchain mean?

A blockchain is a distributed database of records or public ledger of all transactions that have been executed and shared among all of the principles.
The technology of blockchain will help different sectors of life to improve and touch high efficiency.

Bitcoin VS Blockchain?

Bitcoin is the most popular example that is tied to the technology of blockchain.
We can explain the technology of blockchain by describing how bitcoin works.
Don’t forget that the technology of blockchain applies to any digital asset transaction exchanged on-line.

Bitcoin is using cryptographic proof instead of trusting the third-party mechanism for verifying the nodes.
To be honest, blockchain is not bitcoin.
It is the technology behind bitcoin.
Bitcoin is the digital token, but the blockchain is the ledger to keep the track of who owns digital tokens.

Blockchain is a chain of blocks that contain information, the data that is stored in the block mostly depends on the blockchain’s type.
Genesis block is name of first block in the chain.

Each new block is linked to the previous block. 
Each block has its specific hash that is unique for each block has three components:

1. Data
2. Hash
3. Hash of the previous block

Imagine that we have a chain of 3 blocks.
The first block has no predecessor so it doesn’t contain any hash of the previous block.
Block 2 will contain the hash of the first block and at the end, block 3 will contain the hash of the second block.

As we said before, each block has hashes of the previous blocks, and this is the way that we can assure the security of blockchain.
Changing one block will make all of the following blocks invalid.

Hashes are the appropriate mechanism against tampering, but we have another mechanism that will make the creation of blocks slow down. We call the mechanism, Proof-of-Work.

Proof-of-work is the algorithm that secures many cryptocurrencies like bitcoin, ethereum.
Maybe you ask yourself that why do we need the concept of proof-of-work?
The goal of proof-of-work is to prevent the users from printing the extra coins that they didn’t earn, or double-spending.

How does blockchain transaction work in technology of blockchain?

Now, let’s see that how blockchain transaction works. If we want to summarize the steps we can divide them into the below:

1. Transaction requested
2. Broadcast transaction
3. Validate transaction
4. Add to blockchain

Now let’s talk more about them.

1. someone is requesting a transaction. The transaction could be cryptocurrency, contracts or other information.
2. the requested transaction is going to be broadcasted to a peer-to-peer network.
3. the principles of the blockchain, the nodes, are going to validate the transaction by using well-known algorithms.
4. when the transaction is going to be completed, the new block will be added to the chain of current blocks. Remember that they will be permanent and also unalterable.