Today’s world blockchain is a new trend. Many of us don’t understand Blockchain but pretend like we know everything. That’s the funny thing why Blockchain is becoming so fashionable. It’s all right if you have no idea about blockchain technology. Blockchain technology is behind all cryptos.
Blockchain technology is invented to keep data in its digital form besides that keep it secure without any edit also we can distribute the data. Blockchain technology is designed to keep the information transparent. Blockchain technology is another Fintech and has a great potential to rebuild our systematic world. Now knowing more about Blockchain will help to grow in this modern world.
Introduction of Blockchain
Let’s assume these boxes with the same dimensions and weight. Boxes are connected to each other like one box end and another box start. They have filled with 1 and 0 binary coded information.
The binary coded information automatically starts filling another box once the previous one is filled. The blocks can store the information without any alteration; anyone sees them because of transparency but can’t alternate them. Blockchain is named because of the blocks and chain system.
Definition of Blockchain Technology
Blockchain is a highly secured system created to store data/information in binary coded form to keep the data transparent and secure. Each block will fill when a transaction occurs. This blockchain database is called decentralized data are, also known as Distributed Ledger Technology(DLT).
Qualities of Blockchain Technology
- Programmable: Blockchain technology is programmable and easily set up by Smart contracts.
- Secure: Blockchain technology is secured and encrypted for each & every data
- Distributed: All network participants have their copy of Ledger
- Anonymous: The blockchain kept the participant’s Identity anonymous
- Unanimous: All the participants agree to the validity of the record in the blockchain
- Immutable: Records that validated can’t be reversible
- Time Stamped: Each recorded transaction has time stamped on their block
Application Of Blockchain Technology
Blockchain technology is a modern age technology; it took time to adapt it. This time we are just one step into the blockchain. Near future, we can do more things on blockchain technology. But today’s time, the applications are
- Money Transfer (U.S)
- Nonfungible Token (NFT)
- Crypto exchanges
- Smart Contracts
- Digital Real estate
- Private Data Storage
- Decentralized Finance (Defi)
Each country has its different viewpoint on Blockchain technology so some countries accept the technology some refuse to accept it.
“But wait there’s more: the flame thrower is sentient, its safe word is “cryptocurrency” and it comes with a free blockchain.”- Elon Musk
- A new Transaction Entered
- The transaction is entered into the network of peer computers across the world
- The network of computers validates the process
- Once the transaction validates then it saves to a block
- The blocked will create a chain formation
- The Transaction will be done
Why Blockchain Is Secure?
A block likewise has a hash. You can envision a soup like a unique computerized fingerprint. It distinguishes a partnership and the entirety of its substance, and it’s generally special, similarly as a memorable finger impression. When a block is made, the block’s hash is begun to compute.
Changing something inside the block will cause a difference in its hash. Thus, soups are exceptionally valuable when identifying changes to blocks. Assuming that the finger impression transforms, it never again is a similar block. The component inside each block is the past block’s hash, which adequately makes a chain of blocks. Also, it’s this method that makes the blockchain secure.
Proof of Work
Block has a hash and the hash of the past block. So block number three focuses to block number two, and number two focuses on number one. Presently, the main block is a piece exceptional.
It can’t highlight past blocks since it’s the first. We call this block the Genesis block. Presently, suppose that you alter the subsequent block. This makes the hash of the block change too. Like this, that will make block three and generally following blocks invalid since they never again store a substantial hash of the past block.
So changing a solitary block will make all after blocks invalid. In any case, utilizing hashes isn’t to the point of forestalling altering. These days are extremely quick and can ascertain many soups each second. You could adequately alter a block and recalculate every one of the hashes of different blocks to make your blockchain legitimate once more. So to moderate this blockchain, have something called proof of work.
It’s an instrument that dials back the formation of new blocks for Bitcoin’s situation; it requires around ten minutes to compute the necessary proof of work and add another block to the chain. This instrument makes it exceptionally difficult to alter the blocks since, in such a case that you mess with one block, you’ll have to recalculate the proof of work for every one of the accompanying blocks. So the security of a blockchain comes from its inventive utilization of hashing and the proof of work component. In any case, there is another way that blockchains secure themselves, and that is by being appropriated. Rather than utilizing a focal element to deal with the chain, blockchains use a PeerToPeer network, and everybody is permitted to join.
When somebody joins this network, he gets a full duplicate of the blockchain. The hub can utilize this to check that everything is all together. Every seat then, at that point, contains the block to ensure that it hasn’t been altered.
Furthermore, every hub adds this block to their blockchain if all that looks at. Every one of the hubs in this network agrees. They concur concerning what blocks are substantial and which aren’t. Different hubs in the network will dismiss blocks that are altered. So to effectively change a blockchain, you’ll have to mess with every one of the blocks on the chain, re-try the proof of work for each block, and assume responsibility for over half of the PeerToPeer network.
Really at that time, will your tempered block become acknowledged by every other person. So this isn’t easy to do. Blockchains are additionally continually advancing. Perhaps the latest advancements in the production of smart contracts. These contracts are straightforward projects that are put away on the blockchain and can naturally trade coins in light of specific conditions.
Know more about blockchain application [NFT]
How Blockchain Came to Reality?
Let’s say you are transferring money from your bank account to your family or friends. For this, you will log in to online banking and transfer the amount to the other person using their account number. This work seems quite easy to see, but this transaction can be tampered with. Blockchain technology has been created to prevent this type of tampering and secure transactions.
The purpose of blockchain is to solve the problem of dual records without the need for a central server. Technically, blockchain is a digital ledger that has been much more popular lately. Blockchain facilitates the fast pace of transactions, saving both time and money. Most people believe that blockchain and Bitcoin mean the same, but that’s not the case. Blockchain is a technology that supports various applications related to many industries such as finance, construction, supply chain, etc. Still, Bitcoin is a currency that relies on blockchain technology to be secure.
Types of Blockchain
There are mainly four types of blockchain, which are as follows:
- Public Blockchain Networks
- Private Blockchain Networks
- Hybrid Blockchain Networks
- Consortium Blockchains.
Public Blockchain Networks
A public blockchain network is one in which anyone can join and participate, just as Bitcoin is a public blockchain network in which anyone can join and participate in the network. The drawback of the public blockchain is that it requires a lot of computational power, and the security is weak. Anyone with internet access can sign in to the public blockchain network and become an authorized node.
The public blockchain is mainly used for the mining and exchanging cryptocurrencies. Bitcoin, Ethereum, and Litecoin are some examples of public blockchains. If you are using this type of blockchain, it is necessary to follow security protocols. The public blockchain uses the proof-of-work or proof-of-stake consensus mechanism (this we’ll discuss in our next article).
Bitcoin and other cryptocurrencies originated from the public blockchain, which has also played a role in popularizing distributed ledger technology (DLT). With distributed ledger technology (DLT), data is distributed in a peer-to-peer network rather than stored in one place.
Private Blockchain Networks
Private blockchains work on closed networks. Companies use private blockchain networks to optimize their reach and important security options. The private blockchain is managed by only one authority. Like the public blockchain network, the private blockchain network is a decentralized peer-to-peer network.
However, the private blockchain network is controlled by an organization. Each node needs to take approval before joining the private blockchain. Organizations control who can participate in the network and who is not. Only those allowed users can access the data in the private blockchain, and no one else can access those data.
The Oracle Blockchain Platform is a licensed blockchain. Those who want to join the private blockchain network need to take permission from the system administrator. The private blockchain network is used for voting, digital identification, property ownership, etc.
Hybrid Blockchain Networks
Hybrid blockchain is a combination of private blockchain and public blockchain. A hybrid blockchain uses the features of both private and public blockchains. It is a very flexible type node in which information can be kept open according to the person’s choice.
Consortium Blockchain is a semi-decentralized type of network that is managed by more than one organization. In this type of blockchain, many organizations can access the network or exchange information. Consortium blockchains have both public and private components, although these types of blockchains are initially more complex to install, once run, they provide better security.
What is the future of blockchain?
(Future of Blockchain) Blockchain is a new and rapidly evolving technology. The use of which is growing rapidly. Although the future of blockchain is not 100% clear, new approaches and innovations are emerging every day. Its supporters say they can bring about a lot of change in the industry. However, it remains to be seen whether Bitcoin will succeed in supplying other traditional payment methods. If that were the case, it would be a really big change. The Bitcoin system is the most well-known application of blockchain technology, and there are thousands of cryptocurrencies behind this emerging technology.
It’s a modern era technology that develops day by day to introduce new projects like metaverse, Web 3.0, NFT, and many more. It’s a time to take a deep dive into blockchain technique and take it as your profession. Very demanding sector, and easily you will get a job if you have some knowledge in Blockchain.