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What is a Block Header in Blockchain Technology?

POSTED ON MARCH 25 2024

Blockchain technology has paved a new and revolutionary way in which we perceive and interact with digital assets and digital information. A blockchain is a network of connected computers called nodes, with peer to peer interactions and its decentralised approach making it a unique and effective realm. Cryptocurrencies run on blockchain networks and Seven Capitals is the ideal place for you to trade on crypto coins such as Bitcoin and Litecoin, built on their respective blockchain networks. Block header acts as a backbone for blockchain networks, as it serves each of the blocks that constitute a blockchain network. In order to get a better grasp of the way blockchain networks works and how it maintains its secure nature, understanding the concepts and facts surrounding block headers is necessary. 

Definition of a Block Header

Block header is also known as block metadata, and it contains the essential information regarding a particular block in a blockchain network, thereby giving it its unique existential identity. It acts as an identifier of the block and also provides a summary of the same, by containing a snapshot of the contents within the block as well as the relative position of the block on the chronological sequence of blocks in a blockchain network. Therefore, block headers help the management of several blocks, or nodes, within a blockchain network. 

Requirements for a Block Header

Block headers are meant to ensure the immutable and non-corruptible nature and the overall integrity of a blockchain network. To do this, a block header must follow specific requirements such as uniqueness, immutability, and verifiability. 

One of the main challenges faced by blockchains and the earlier versions of digital currencies as well is the chance of one asset getting duplicated for repeated use, thereby tarnishing the integrity of the network. By possessing unique identifiers by block headers, the duplication can be prevented. With the help of unique identifiers, block headers can maintain the integrity of the linear structure of the blockchain. 

On the other hand, the immutable nature of the blockchain network is what makes it trustworthy and authentic. Therefore, once a block is created, it cannot be altered, thereby maintaining the tamper-proof nature of the blockchain. Also, in the blockchain networks, the verifiability is not a unique feature possessed by a central authority. Here, anyone in the network should be able to verify transaction details and other details, which makes it a decentralised network. Therefore, the contents of each and every block header must be verifiable by anyone in the network. This maintains the trust and transparency within the network, and also ensures the overall safety and security as well. 

What are the Block Header Components?

The key components of block header are Previous block hash, Markle root, Timestamp, Nonce, Version, Transaction count, and Difficulty target. 

  1. Previous block hash: Previous block hash is a cryptographic value used to link the current block to the previous block. This maintains the sequential order of the blockchain. The first block, called the Genesis block, will be the only block with no previous block hash value.
  2. Markle root: Merkle tree is a hierarchical data structure used to effectively verify the integrity of all the transactions taking place in the block. Merkle root is the hash value that represents the root of the Merkle tree.
  3. Timestamp: In order to determine at what instant of time a particular block is used, timestamps are used. They are proofs and parameters to determine the authenticity of a block.
  4. Nonce: Nonce is an arbitrary number used in PoW (proof of work) algorithm to create a valid block hash. This ensures security and resistance to any type of manipulation of the blockchain.
  5. Version: It refers to the version used by that particular block. There are different types of Blockchain versions, such as Blockchain Version 1.0 which is used as a public ledger to store the data, Blockchain Version 2.0 which are self-executing programs called smart contracts, Blockchain Version 3.0 which is regarding decentralised applications or DApps, and Blockchain Version 4.0 which is used to create a scalable and affordable blockchain networks.
  6. Transaction count: Transaction count represents the number of transactions included in the block. It provides an overview of the block’s activity.
  7. Difficulty target: Difficulty parameter is a computational effort required to generate a valid block hash. Here, the difficulty is being adjusted based upon the network conditions.

Conclusion 

Block headers contain the essential information regarding each and every block in a blockchain network. It contains various data components that give each block a uniqueness that cannot be tampered or altered. The essential components of a block header include Previous block hash, Markle root, Timestamp, Nonce, Version, Transaction count, and Difficulty target. Also, the block headers should maintain the basic requirements of uniqueness, immutability, and verifiability. Block headers also help maintain the chronological sequence of blocks of a blockchain network.Since block headers are vital when it comes to maintaining the integrity of a blockchain network, it’s often called the backbone of blockchain technology. Knowing about block headers, its features, and components will help you get a better idea about how blockchain technology and cryptocurrencies work. 

The number one contribution of blockchain technology to a common man is the availability of cryptocurrencies for trade. With the help of Seven Capitals, you can now trade in crypto coins like Bitcoin, Ethereum, and Litecoin, with ease and effectiveness. We offer affordable broker fees, high leverage, advanced MetaTrader 5 trading platform, educational content, and 24/7 customer support to help your trading journey. Join Seven Capitals today to trade in multiple financial instruments such as indices, currency pairs, precious metals and energies, so that you can diversify your investment portfolio and mitigate risks. 
 

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