Here are five basic principle underlying the technology.
1. Distributed Database
Every single parties on a blockchain has access to the entire database and its complete history. Not a Single party controls the information or the data. Each party can confirm the record of its exchange/transaction partner directly without a mediator or a middle party.
2. Peer-to-Peer Transmission
Communication happens directly and legitimately between peers rather than through a central party. Every node/hub stores and forwards data to every other node in the system.
3. Transparency with Pseudonymity
Each transaction/exchange and its related value are noticeable to anyone with access to the framework/system. Every node, or client, in the blockchain has an unique 30 or more character alphanumeric address that identifies it. Every single user can choose to stay anonymous or provide proof of identification to others in the system. Transaction occurs between blockchain addresses.
4. Irreversibility of Records
When a transaction is entered in the database and the records are updated, the records cannot be adjusted or altered because they are linked to every transaction that came from their address which also explains the term “Chain”. Different computational calculations and approaches are conveyed to guarantee that the recording on the database is permanent, sequentially ordered, and accessible to all other user in the system.
5. Computational Logic
The advance idea or the digital nature of the record means that blockchain exchanges can be attached to computational logic and in a sense, programmed. So users can setup calculations decides that automatically triggered transaction between blocks.