To present blockchain technology has been used in various aspects of living. It provides multiple additional benefits such as instantaneous transactions, low fees, trust and data immutability. With the help of blockchain architecture, one can have the complete view of how it functions and useful.

The blockchain, in general, is an interconnection of the mesh of computers linked to each other instead of the central server, where the whole network is decentralized. Before data, the data to the block the miners verify the data to add on the blockchain. This technology benefits a lot especially of the enterprises.

What is blockchain architecture?

Now let’s drag down into the technical aspects of the blockchain architecture, how it functions and the requirements or skills need to create your own blockchain.

The blockchain architecture components are categorized as transactions, miners, blocks, consensus which can be further generalized, implemented by using different blockchain projects.


Transactions are the smallest building elements of the blockchain system. It consists of the recipient, sender address and a value for transacting. In the blockchain technology, all the nodes possess the copy of each transaction and the current state also. All the transactions are handled and delivered to each and every node in the network in the form of a block.

In the blockchain architecture the way the transactions verified or handled varies based on the implementation. For a transaction to be implemented it can be one or more inputs as well as outputs. An input is a reference to the output from the previous transactions and the output specifies the amount and the address.


Blocks are nothing but the data structures whose purpose is to bundle a set of transactions and distributed to all the nodes in the network. Blocks are created by the miners. The blocks contain the block header which is nothing but the metadata helps in verifying the validity of the block.

The block metadata contains the following attributes:

  • The block metadata contains current version of the block structure.
  • It contains previous block header hash.
  • Merkle root hash the cryptographic hash of all the transactions in the block.
  • It contains the time at which block was created.
  • nBits that block required to create.
  • nonce is a number used once value which is used to manipulate the block.

The block header constitutes the above mentioned 6 fields and the rest contains the transactions that miner choose to verify. Based on the consensus rule only the valid changes will be accepted, worked on and submitted to the network.

The blocks are distinguished in to 3 types.They are:

  • Main branch blocks: Extension of current main block.
  • Side branch blocks:Reference blockchain not in the trip.
  • Orphan blocks: Unknown node processing the block.


Mining is the process of creating the valid block that is accepted by the rest of the network without any inconvenience. Miners can take up the different projects to handle and implement the blockchain process. In general, the miners can process the network of a credit card company by considering the pending transactions, verifying the cryptographic hash and meanwhile package them into blocks to be stored on the blockchain ledger.

At a higher level of mining involves the hashing of the block. The hash function evolves the proof of work as addressed in the bitcoin network. It is an arbitrary piece of data into a fixed length hash output. For the same input, you will be provided with the same hash output.


Consensus is nothing but verifying and checking the validity of the transactions and blocks. The consensus of the blockchain is realized by the specified set of rules. These rules are entirely self-enforced which makes the consensus grow stronger.

For example the bitcoin blockchain had the rule stating like so i.e the transaction amount should be cut into the half after every 200,000 blocks. As the result, if your block produces the 20BTC, this value must be halved after 200,000 blocks. If the miner produces the block which does not adhere to the consensus rule then the block will be rejected and is not verified by the whole network.

How one can build their own blockchain architecture?

Now let us examine the blockchain architecture in some more detail and elaborative way. It is the application which is powered by the distributed servers based on the decentralization concept. It also acts the database repository by storing all the transaction data which is shared by all the nodes across the connected network. All the data and the transactions are secured on the blockchain with the cryptography system.

blockchain architecture

For instance, the transactions on the blockchain are triggered by anyone who is holding the wallet and can conduct the transfer of funds using the blockchain. The transactions are carried out in the encrypted format i.e business data for security point of view. The miners verify, record the transactions and places them in blocks to carry forward throughout the chain. The miners will receive the rewards for the proof of work. The whole system or process goes like this.

Skill set required to work with blockchain technology

If you want to work with blockchain systems, you need to possess a strong background in computer science is important . Apart from it, you need to also have the keen knowledge pertaining to data structures, consensus methods, decentralized ledgers, cryptography, different cryptocurrencies and data security as well.

As the blockchain is a demanding technology requires the technical, coding skills such as JAVA, Python, C, C++ etc. The organizations and individuals who are well versed with the technology are going to find the best advantage in the future as all the sectors are trying to use this technology in their business. Some business had adopted and while some are the way to reach it out.


In the general essence it is the distributed data structure built over time. The information on the blockchain is verified and audited at any time. The transactions which are integrated with the blockchain are verified by the miners and consensus rules. With its greater transparent mechanism and revolutionary facts helps to carry out the transactions and greater deals with one another.

It is greatly used in bidding strong potential to the digitization concept such as land registries, encrypting the personal identification and intellectual properties etc. It helps the organizations and government entities to carry out their data exchanges without relying on the central authorities for authentication purposes. Many blockchain startups in India had emerged as a result in 2018.

Here is the best example of why blockchain technology is to be implemented in doing digital transactions. Banks act as the intermediaries between the two parties for exchange or any transactions to be done. There might be chances of human error or fraud. But coming to the usage of blockchain data entered is immutable and all the transactions are verified by the independent miners.

With the blockchain consensus rules one can easily simplify their business process and introduce a revolutionary way to create systems that are free from the reliance on any central authority to dictate the truth or transparency, efficiency as well.

Moreover using the blockchain architecture your transactions can be trusted, immutable, accountable and transparent.

Also Read How blockchain technology helps in trading different cryptocurrencies?