Let’s understand it all, piece by piece.
What is a Block?
Each Block contains specific data and hash functions. The kind of data that is stored inside of a blockchain depends on the type of blockchain.
The data may include transaction details that can not be overwritten or backdated. For example, the Bitcoin block carries the owner’s name, amount of transaction and the ID of the person it is transferred to.
What is a node?
Each individual transaction is kept intact in a block. All blocks of an individual are stacked together as a chain or composite. Each individual’s chain is called a node. A node stores all transaction history of one individual, in a collection of blocks.
Each node on the network is then stacked as a larger chain. Whereby, all ledgers are separate but every user has a logically arranged copy of all other ledgers on the network which is automatically updated using several Gigahertz of computing power at the back end.
This is similar to the functioning of calculators. Calculators may show the complicated workings of tough math problems as per preference and settings. If the working is hidden and only the result of the query is shown on a screen, the answer or result will still be true and accurate. The missing details of numeric additions, subtractions, multiplication and so on, do not deem the answer wrong or shady. Neither does it entail that the working was not done. It is only an efficient way to show the user what is of relevance to them.
The Public Distributed Ledger – the larger network:
All of this is linked to the date and time of the transaction that remains intact because of the intricate, closely webbed network of all blocks in the network.
The distributed ledger works like a glass piggy bank. Rather a glass piggy bank for the owners, but only a picture of it for the viewers. With every penny used or added, a new picture is replaced for the viewers.
This means any individual with reasonable eyesight can see what lies in the piggybank via the picture. It is transparent in nature. However, the piggybank can be owned by only one person. So only the owner will be able to use what lies in the piggy bank, while rest can only see the contents. Whether the owner decides to spend, buy or sell, is the owner’s prerogative and nobody can influence or force the decision.
Similarly, the distributed ledger is public and visible for people able to read the blockchain ledgers. Each transaction shows up on the network, but it does not mean that each transaction belongs to everyone it is visible to.