What are the Hash Functions and how are they relevant?
The hash functions help in linking each block in a series of well organized logical data blocks. There are two hash functions in each block, one contains the hash of the current block and the other contains the hash of the previous block.
The hash functions are unique and also consistently updated on each node. The Previous Hash of block A will be 00000, while its own hash will become the Previous Hash of block B.
The contents or the arrangement of the characters in the hash depend on the data in the block. Changing something inside the block will cause for the hash to change. If the hash I changed the entire network is notified about the rejected transaction, the block becomes invalid and the transaction freezes.
But hackers can quickly generate hashes based on what they want the transactions to show and by altering all hashes to no discrepancies will show. This is why another layer of security is added onto the network, this is called the Proof-of-work.
Proof of work – The secret ingredient
Faulty transactions are deemed invalid by the entire block, to scam one node, all nodes need to be accessed and changed. But, blockchains make the process very long and tedious for hackers by using Proof-of-work to verify all transactions.
If false proof of work is to be created each transaction will require ten minutes of false fabrication, multiplied by the number of transactions on the node plus time taken in doing so for each other node:
(10 mins per proof of work x number of transactions on the node) + (the total time of node x) + (the total time of node y) + (the total time of node z) + (the total time of all others) = Consistent and seamless Proof-of-work.
While hackers do not have the patience or technology to cheat this system it is likely to maintain the security of these networks for however long blockchains are to last.
Why is the link or the chain topology important to the network?
This system topology allows this network to be decentralized, by eliminating a hierarchical form of data regulation. The automated updates allow the system to be monitored and controlled by all users with no possibilities of malpractice or wrongdoings.
The intricacy in this system also makes it immune from forgery and replication. And it allows freedom from radical meddling within the system.
Public ledgers help in validation and consensus on all historic events within the network. This reduces the risk of any discrepancies to develop within the network.