What Is Blockchain Architecture? A Beginner’s Guide to the Basics

Blockchain
technology
provided
an
innovative
solution
to
the
problems
of

decentralization
with
the
help
of
a
unique
architecture.
It
offers
a

decentralized
ledger
system
that
leverages
cryptographic
security
to
ensure
integrity
and
immutability
of
your
data.
The
architecture
of
blockchain
is
significantly
different
from
traditional
database
structure
as
it
includes
a
continuously
growing
chain
of
records,
known
as
blocks. 

People
have
been
curious
about
queries
like
‘What
is
the
architecture
of
blockchain?’
to
understand
the
reasons
behind
unique
traits
of
blockchain.
You
might
also
have
the
same
question
when
you
find
how
a
blockchain
arranges
verified
transactions
in
a
specific
sequence
to
create
a
transparent
and
permanent
record
of
all
transactions.
Let
us
learn
more
about
blockchain
architecture
to
discover
its
true
potential.

Identifying
Crucial
Components
in
Blockchain
Architecture

The
first
thing
you
need
to
understand
blockchain
architecture
is
the
definition
of
the
term.
Blockchain
architecture
refers
to
the
design
of
the
structure
for
a

peer-to-peer
network
of
computers
or
nodes
that
works
as
backend
for
different
systems
and
applications.
The

blockchain
network
works
as
a
virtual
machine
without
any
central
authority
to
manage
communication
between
the
nodes.
The
decentralized
nature
of
blockchain
ensures
that
it
does
not
have
a
single
point
of
failure,
thereby
ensuring
better
security. 

As
more
people
want
to
learn
blockchain
architecture,
it
is
important
to
find
the
easiest
approach
to
do
the
same.
You
can
visualize
blockchain
architecture
as
an
orchestra
in
which
different
players
have
unique
roles.
The
different
components
in
blockchain
architecture
work
in
unison
to
achieve
the
distinct
traits
offered
by
blockchain
technology.

Core
Components
in
Blockchain
Architecture

The
fundamental
unit
of
blockchain
architecture
is
a
node,
which
is
a
machine
on
peer-to-peer
networks
of
blockchain.

Nodes
are
nothing
but
computers
connected
to
the
distributed
network
and
the
internet.
The
node
also
runs
the
core
software
that
helps
it
in
interacting
with
other
nodes
in
the
network.
The
primary
functions
of
a
node
revolve
around
updating
the
decentralized
ledger,
storing
it
and
sharing
data
with
other
nodes. 

• 
  Transactions 

Transactions
are
the
entries
in
the
decentralized
ledger
of
blockchain.
You
can
find
transactions
that
transfer
value
such
as
digital
assets
from
one
address
to
another.
On
the
other
hand,
blockchain
transactions
can
also
bring
changes
in
the
state
of

smart
contracts. 

• 
  Decentralized
  Ledger

The
decentralized
ledger
or
distributed
ledger
describes
everything
that
you
can
expect
in
blockchain
technology.
It
is
a
type
of
decentralized
database
that
stores
the
chain
of
blocks
that
make
up
the
blockchain.
The
decentralized
ledger
includes
a
chain
of
blocks
beginning
from
the
genesis
block
to
the
current
block.
The
blocks
are
linked
to
each
other
with
unique
metadata
that
makes
them
immutable
or
completely
immune
to
modification.
It
is
important
to
note
that
the
metadata
refers
to

cryptographic
hash
of
previous
block,
transaction
data
and
a
timestamp. 

The
fundamental
concepts
of
blockchain
architecture
explained
for
beginners
will
also
include
references
to
the
block.
It
is
also
a
fundamental
unit
of
a
blockchain
as
blocks
include
a
batch
of
transactions
that
the
decentralized
network
must
process
and
verify
on
the
shared
ledger.

• 
  Consensus
  Protocol

You
cannot
think
of
creating
a
blockchain
network
without
consensus
protocols.
The
consensus
protocol
is
a
collection
of
rules
that
guide
the
interaction
between
nodes
in
the
peer-to-peer
network.
Consensus
protocols
also
dictate
how
the
nodes
in
a
blockchain
network
must
agree
on
authenticity
of
transactions
and
their
verification.
Consensus
protocols
also
define
how
the
nodes
should
store
transaction
data
on
the
decentralized
ledger.
The
significance
of
consensus
protocols
also
extends
to
determining
the
ways
for
executing
smart
contracts.

• 
  Miners
  and
  Validators 

The
consensus
protocol
of
a
blockchain
network
also
brings
in
miners
and
validators
into
blockchain
architecture.
Depending
on
the
type
of
consensus
protocol
used
in
blockchain
architecture,
you
can
find
miners
and
validators
as
the
entities
responsible
for
securing
the
network.
Miners
and
validators
are
the
nodes
in
the
network
who
verify
and
validate
transactions
before
adding
them
to
the
blockchain.
You
will
find
miners
in

Proof
of
Work
consensus
while
validators
are
common
in

Proof
of
Stake
consensus
protocols. 

Miners
have
to
set
up
a
dedicated
machine
for
performing
different
functions
such
as
verifying
transactions
through
mathematical
computations,
transferring
data
and
storing
the
decentralized
ledger.
The
miner
also
receives
rewards
for
their
efforts
in
ensuring
that
only
verified
transactions
are
added
to
the
blockchain.

Validators
are
also
an
important
part
of
any
blockchain
architecture
diagram
for
Proof
of
Stake
consensus.
The
work
of
a
validator
is
almost
the
same
as
that
of
a
miner.
However,
validators
don’t
need
advanced
computing
hardware
like
miners
to
solve
mathematical
puzzles
for
verifying
transactions.
On
the
contrary,
they
place
a
certain
stake
in
the
network
to
earn
the
rights
to
verify
transactions
on
blockchain.

• 
  Cryptography 

Another
notable
component
in
blockchain
architecture
is

cryptography.
It
is
an
important
component
for
ensuring
security
and
authenticity
of
transactions
added
to
a
blockchain.
The
two
most
crucial
terms
that
you
will
find
in
cryptography
for
blockchain
are

public
key
and
private
key.
Blockchain
architecture
leverages
cryptography
for
ensuring
security
of
data
on
the
decentralized
ledger
and
creating
an
addressing
system. 

Public-private
key
cryptography
helps
in
creating
different
keys
for
encryption
and
decryption.
The

public
key
helps
in
encryption
while
the
private
key
enabled
decryption.
The
public
key
works
like
the
wallet
address
where
people
can
send
information
or
assets.
Private
keys
are
similar
to
the
password
to
your
bank
account
as
they
help
you
access
your
data
and
funds
on
a
blockchain.
It
is
also
important
to
note
that
private
keys
are
also
essential
for
authorizing
certain
actions
on
smart
contracts. 

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Unraveling
the
Layers
in
Blockchain
Architecture 

The
review
of
the
components
in
blockchain
architecture
creates
curiosity
about
the
layers
you
can
find
in
blockchain
architecture.
You
can
find
five
blockchain
architecture
layers
with
distinct
functionalities.
The
layers
include
hardware
layer,
data
layer,
network
layer,
consensus
layer
and
application
layer.

Hardware
layer
comprises
of
the
network
of
devices
that
drive
the
computational
power
of
blockchain
or
the
nodes
in
the
network. 

Data
layer
in
blockchain
architecture
is
useful
for
storing
transaction
details
such
as
public
key
of
receiver,
private
key
of
sender
and
information
of
the
assets
transferred. 

The
network
layer
is
responsible
for
managing
interactions
between
different
nodes
in
blockchain
architecture.

The
most
important
layer
in
blockchain
architecture
is
the
consensus
layer.
It
is
responsible
for
validation
of
blocks
according
to
the
type
of
consensus
protocol
used
for
a
blockchain
network.

The
final
layer
of
blockchain
architecture,
application
layer,
is
the
user-facing
layer
in
blockchain.
It
serves
as
the
playground
for
creating
apps
such
as

DeFi
apps,
NFT
platforms,

crypto
wallets
and

decentralized
apps. 

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Discovering
the
Uniqueness
of
Different
Types
of
Blockchain
Architecture

Another
crucial
highlight
in
guides
on
blockchain
architecture
explained
in
simple
terms
is
the
explanation
for
different
blockchain
architectures.
You
will
find
three
notable
types
of
blockchain
architecture,
such
as
public,
private
and
consortium
architectures.
The
following
sections
can
help
you
understand
their
unique
traits
and
functionalities.

• 
  Public
  Blockchain 

As
the
name
implies,
public
blockchain
architecture
allows
anyone
to
participate
in
the
network.
You
can
set
up
a
node
to
participate
in
public
blockchain
networks
without
the
permission
of
anyone.
Every
participant
can
view
transactions
on
the
network,
add
transactions
and
work
as
a
node
to
verify
transactions. 

Public
blockchain
networks
don’t
rely
on
any
central
authority,
thereby
ensuring
safety
from
manipulation
and
censorship.
On
top
of
it,
public
blockchain
also
provides
the
assurance
of
immutability
and
transparency,
thereby
allowing
everyone
to
verify
transactions.
Another
crucial
trait
of
public
blockchain
networks
is
the
facility
of
incentives
for
network
participants
to
work
honestly.

• 
  Private
  Blockchain 

Private
blockchain
networks
follow
an
architecture
in
which
only
a
few
selected
participants
can
join
the
network.
Accessibility
to
private
blockchain
networks
is
limited
only
to
participants
with
approval.
The
responsibility
of
verifying
and
recording
transactions
in
a
private
blockchain
falls
upon
the
approved
participants. 

Many
organizations
use
private
blockchain
networks
for
internal
record-keeping
or
in
supply
chain
management.
Private
blockchain
networks
offer
better
control
over
participation
alongside
ensuring
faster
transactions.
The
primary
focus
of
private
blockchain
revolves
around
privacy
thereby
reducing
the
level
of
transparency. 

• 
  Consortium
  Blockchain 

The
next
important
variant
you
must
know
about
to
learn
blockchain
architecture
is
the
consortium
blockchain
architecture.
Consortium
blockchain
networks
follow
a
special
architecture
that
brings
in
multiple
organizations
as
the
owners.
Consortium
blockchain
architecture
allows
some
predefined
group
of
nodes
to
write
transactions
on
the

blockchain.
With
the
consortium
blockchain
architecture,
you
can
achieve
higher
security
alongside
safeguarding
the
principles
of
decentralization.

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Final
Thoughts 

The
discussions
about
blockchain
architecture
must
focus
on
the
core
components
that
make
a
blockchain
network.
You
can
build
blockchain
architecture
with
nodes,
blocks,
a
decentralized
ledger,
and
cryptography
and
consensus
protocols.
It
is
also
important
to
note
the
significance
of
validators
and
miners
in
the
architecture
of
a
blockchain
network.
On
top
of
it,
you
must
also
learn
about
the
different
types
of
blockchain
architectures
and
their
distinct
traits.
In-depth
understanding
of
blockchain
architecture
provides
an
effective
solution
to
identify
the
best
architecture
according
to
your
needs.