In general, blockchains can be permissionless, permissioned or both. This classification is based on the blockchain’s access policies and rights management. To join a permissionless blockchain, you do not need permission. In other words, permissionless blockchains enable anybody to join the blockchain anonymously and do not limit the privileges of the nodes on the network. A permissioned blockchain, on the other hand, requires permission from a central authority to join.
In first part of this blog series, I outlined some fundamental concepts pertaining to blockchain technology. Now I would like to dive deeper into how Blockchain actually works and see the inner workings of the technology itself.
Today’s media and social networks are full of news, posts, and articles about Bitcoin and other cryptocurrencies, NFTs and similar topics. This increasing popularity of Bitcoin and other cryptocurrencies made me wonder what exactly lies behind it, and how these things actually work. In this blog series we will explain what blockchain is and how it actually works.