Blockchain - Payment Verification

In this tutorial you will learn about Blockchain – Payment Verification step by step. So without much to do let’s get started.

What is Blockchain?

A blockchain is a continuously developing ledger which continues a permanent record of all the transactions which have taken place in a secure, chronological, and immutable way.

Let’s breakdown the definition,

o Ledger: It is a record this is constantly growing.
O Permanent: It means once the transaction is going internal a blockchain, you can put up it completely within the ledger.

O Secure: Blockchain placed information in a secure way. It uses very advanced cryptography to ensure that the data is locked inside the blockchain.

O Chronological: Chronological means each transaction happens after the previous one.

O Immutable: It method as you construct all the transaction onto the blockchain, this ledger can never be changed.

A blockchain is a chain of blocks which include records. Each block records all of the latest transactions, and as soon as finished goes into the blockchain as a permanent database. Each time a block gets finished, a brand new block is generated.

Note: A blockchain may be used for the secure transfer of money, property, contracts, and so forth. Without requiring a third-party intermediary like bank or government. Blockchain is a software protocol, but it couldn’t be run without the Internet (like SMTP used in email).

Blockchain – Payment Verification

Consider a case wherein as a supplier you can want to confirm a positive payment made in the beyond. As the blockchain you are preserving for your gadget incorporates best the block headers as shown in the earlier figure, the transaction which you are attempting to find is missing inside the copy of your blockchain.

You can now seek backwards in your copy of the blockchain until you find a block in which the desired transaction is timestamped in. Now, request the merkle tree of the chosen block and you may have the transaction which you are searching out. This is illustrated in below Figure −

Here, we assume that you are searching out Tx103. Though you may no longer be capable of see the contents of Tx103, that this has been accepted by the block to which it belongs and all next blocks inside the chain. Thus, you can appropriately trust this transaction and proceed with your business.