BlockChain Technology And Cryptocurrenices

-


 A BlockChain can be referred to as a collection of records or open record that gets shared amongst participating parties. Every transaction that gets incorporated is first verified by all the participants of that transaction. Once the data gets recorded by the blockchain, can never be rewritten or changed. Thus the blockchain can be termed as a record book of all the transactions held. CryptoCurrencies the decentralized bitcoin or say ethereum which can be termed as peertopeer computerized cash also uses the blockchain technology. This post includes history of bitcoin, a few literary reviews, working of the blockchain and its application,and more..

Abstract:



What is BlockChain Technology?

    “The network is robust in its unstructured simplicity. Nodes work all at once with little coordination.”
                                                                                                                                 -Satoshi Nakamoto


Why BlockChain Technology!!!

Suppose you are transferring money to your family or friends from your bank account. You would log in to online banking and transfer the amount to the other person using their account number. When the transaction is done, your bank updates the transaction records. It seems simple enough, right? There is a potential issue which most of us neglect.

These types of transactions can be tampered with very quickly. People who are familiar with this truth are often wary of using these types of transactions, hence the evolution of third-party payment applications in recent years.  But this vulnerability is essentially why Blockchain technology was created.

Technologically, Blockchain is a digital ledger that is gaining a lot of attention and traction recently. But why has it become so popular? Well, let’s dig into it to fathom the whole concept.

Record keeping of data and transactions are a crucial part of the business. Often, this information is handled in house or passed through a third party like brokers, bankers, or lawyers increasing time, cost, or both on the business. Fortunately, Blockchain avoids this long process and facilitates the faster movement of the transaction, thereby saving both time and money.

Most people assume Blockchain and Bitcoin can be used interchangeably, but in reality, that’s not the case. Blockchain is the technology capable of supporting various applications related to multiple industries like finance, supply chain, manufacturing, etc., but Bitcoin is a currency that relies on Blockchain technology to be secure.

Blockchain is an emerging technology with many advantages in an increasingly digital world:

  1. Highly Secure
  2. Decentralized System
  3. Automation Capability

How it Works?

In recent years, you may have noticed many businesses around the world integrating Blockchain technology. But how exactly does Blockchain technology work? Is this a significant change or a simple addition? The advancements of Blockchain are still young and have the potential to be revolutionary in the future; so, let’s begin demystifying this technology.

Blockchain is a combination of three leading technologies:

  1. Cryptographic keys
  2. A peer-to-peer network containing a shared ledger
  3. A means of computing, to store the transactions and records of the network

Cryptography keys consist of two keys – Private key and Public key. These keys help in performing successful transactions between two parties. Each individual has these two keys, which they use to produce a secure digital identity reference. This secured identity is the most important aspect of Blockchain technology. In the world of cryptocurrency, this identity is referred to as ‘digital signature’ and is used for authorizing and controlling transactions.

The digital signature is merged with the peer-to-peer network; a large number of individuals who act as authorities use the digital signature in order to reach a consensus on transactions, among other issues. When they authorize a deal, it is certified by a mathematical verification, which results in a successful secured transaction between the two network-connected parties. So to sum it up, Blockchain users employ cryptography keys to perform different types of digital interactions over the peer-to-peer network.

Types of Blockchain

There are Four Types of  BlockChain:

1.Private BlockChain Networks

Private blockchains (or Permissioned) are created and maintained by private organizations. Here, the creators have access control over mining rights and the consensus algorithm followed by the private blockchain network. These are the distributed network with private control.

2.Public BlockChain Networks

A public blockchain is one where anyone is free to join and participate in the core activities of the blockchain network. Anyone can read, write, and audit the ongoing activities on a public blockchain network, which helps achieve the self-governed, decentralized nature often touted when blockchain is discussed.

3.Permissioned BlockChain Networks

Permissioned blockchains are blockchains that are closed (i.e., not publicly accessible) or have an access control layer. This additional layer of security means that the blockchain can only be accessed by users with permissions.

4.Consortium BlockChain Networks

A consortium blockchain is a combination of multiple private blockchains belonging to different organizations, where each of them forms a node on the chain as a stakeholder in the alliance — and can only leave or join the network with the authorization of the stakeholders.

Transaction Process

One of Blockchain technology’s cardinal features is the way it confirms and authorizes transactions. For example, if two individuals wish to perform a transaction with a private and public key, respectively, the first person party would attach the transaction information to the public key of the second party. This total information is gathered together into a block.

The block contains a digital signature, a timestamp, and other important, relevant information. It should be noted that the block doesn’t include the identities of the individuals involved in the transaction. This block is then transmitted across all of the network's nodes, and when the right individual uses his private key and matches it with the block, the transaction gets completed successfully.

In addition to conducting financial transactions, the Blockchain can also hold transactional details of properties, vehicles, etc.

Here’s a use case that illustrates how Blockchain works:

1.Hash Encryption

Cryptographic hash function in Blockchain is a way to secure the message block and is used to connect the blocks in a chain. Briefly, In the blockchain, each block contains its own block hash and a hash of its previous block.
it uses SHA256 algorithm for secure the information

2.Proof of  Work

In a Blockchain, each block consists of 4 main headers.
  • Previous Hash: This hash address locates the previous block.
  • Transaction Details: Details of all the transactions that need to occur.
  • Nonce: An arbitrary number given in cryptography to differentiate the block’s hash address.
  • Hash Address of the Block: All of the above (i.e., preceding hash, transaction details, and nonce) are transmitted through a hashing algorithm. This gives an output containing a 256-bit, 64 character length value, which is called the unique ‘hash address.’ Consequently, it is referred to as the hash of the block.
  • Numerous people around the world try to figure out the right hash value to meet a pre-determined condition using computational algorithms. The transaction completes when the predetermined condition is met. To put it more plainly, Blockchain miners attempt to solve a mathematical puzzle, which is referred to as a proof of work problem. Whoever solves it first gets a reward.

3.Mining

In Blockchain technology, the process of adding transactional details to the present digital/public ledger is called Mining. Though the term is associated with Bitcoin, it is used to refer to other Blockchain technologies as well. Mining involves generating the hash of a block transaction, which is tough to forge, thereby ensuring the safety of the entire Blockchain without needing a central system.


History of BlockChain

Satoshi Nakamoto, whose real identity still remains unknown to date, first introduced the concept of blockchains in 2008. The design continued to improve and evolve, with Nakamoto using a Hashcash-like method. It eventually became a primary component of bitcoin, a popular form of cryptocurrency, where it serves as a public ledger for all network transactions. Bitcoin blockchain file sizes, which contained all transactions and records on the network, continued to grow substantially. By August 2014, it had reached 20 gigabytes, and eventually exceeded 200 gigabytes by early 2020. 


Merits and Demerits of BlockChain Technology

let's see some merits first
****One major advantage of blockchain is the level of security it can provide, and this also means that blockchains can protect and secure sensitive data from online transactions. For anyone looking for speedy and convenient transactions, blockchain technology offers this as well. In fact, it only takes a few minutes, whereas other transaction methods can take several days to complete. There is also no third-party interference from financial institutions or government organizations, which many users look at as an advantage. ****


and demerits is..
****Blockchain and cryptography involves the use of public and private keys, and reportedly, there have been problems with private keys. If a user loses their private key, they face numerous challenges, making this one disadvantage of blockchains. Another disadvantage is the scalability restrictions, as the number of transactions per node is limited. Because of this, it can take several hours to finish multiple transactions and other tasks. It can also be difficult to change or add information after it is recorded, which is another significant disadvantage of blockchain.****



Ten steps to build your BlockChain Application

  1. Understand what Blockchain is and its key components.
  2. Understand the purpose of your application.
  3. Create a use case for your application.
  4. Find out if there's already an existing blockchain for your purpose.
  5. Explore the different types of Blockchain platforms available for your application. There are many types of Blockchain, each with its strengths and weaknesses. 
  6. Choose the right platform for developing your app.
  7. Select the consensus algorithm you will use.
  8. Learn Solidity - Ethereum's programming language for smart contracts and DApps (decentralized applications).
  9. Learn how to use Truffle or Remix - development tools for Ethereum DApps and smart contracts.
  10. Get an Ethereum account or wallet and buy some Ether (ETH), the currency of the Ethereum network. 

Decentralization

In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network.

BitCoin vs BlockChain


Bitcoin is a digital currency that was first introduced in 2009 and has been the most popular and successful cryptocurrency to date. Bitcoin's popularity is attributed to its decentralized nature, which means it doesn't have a central authority or bank controlling its supply. This also means that transactions are anonymous, and no transaction fees are involved when using bitcoin.

Blockchain is a database of transactions that have taken place between two parties, with blocks of data containing information about each transaction being added in chronological order to the chain as it happens. The Blockchain is constantly growing as new blocks are added to it, with records becoming more difficult to change over time due to the number of blocks created after them.

Importance of BlockChain

Blockchain is important because it has the potential to revolutionize the banking industry. Banks need to be faster to adapt to the changing needs of the digital age, and Blockchain provides a way for them to catch up. By using Blockchain, banks can offer their customers a more secure and efficient way to conduct transactions. In addition, Blockchain can help banks to streamline their operations and reduce costs.


Proof of Work and Proof of Stake

Proof of work (PoW) is an algorithm to create blocks and secure the Blockchain. It requires miners to solve a puzzle to create a block and receive the block reward in return.

Proof of stake (PoS) is an alternative algorithm for securing the Blockchain, which does not require mining. Instead, users must lock up some of their coins for a certain time to be eligible for rewards.

BlockChain Protocols

The three most common protocols Bitcoin was the first blockchain protocol and is still the most widely used is:

  • Bitcoin-  Bitcoin is a decentralized digital currency, often referred to as a cryptocurrency. It exists on a decentralized network of computers, often called a blockchain, that keeps track of all transactions made using the currency. Bitcoin uses a proof-of-work algorithm to validate transactions and add them to the blockchain. Bitcoin was the first cryptocurrency to be created and is the most well-known.
  • Ripple- Ripple is a cryptocurrency that is similar to Bitcoin. Ripple uses a decentralized network of computers to keep track of all transactions made using the currency. Ripple uses a proof-of-work algorithm to validate transactions and add them to the blockchain. Ripple was created in 2012 and is the second largest cryptocurrency by market capitalization.
  • Ethereum- The Ethereum blockchain was initially described in a white paper by Vitalik Buterin in 2013. Buterin, a programmer who was born in Russia and raised in Canada, had been involved with bitcoin from its early days. He was excited by the technology, but he thought that bitcoin needed a scripting language for application development. He decided to create a new platform that would be more general than bitcoin.


 Conclusion

Although we just skimmed the industry-wide potential of blockchain applications in this article, the career potential in this field is growing exponentially. Getting ahead of the game is always a good strategy for any professional. 

The Bitcoin is the first successful implementation of blockchain. Today, the world has found applications of blockchain technology in several industries, where the trust without the involvement of a centralized authority is desired.

so Guys let's create our BlockChain Society....😉

Comments

Post a Comment

Popular posts from this blog

The "Sweet Spot" for Marriage in India

-
Image
While the concept of marriage is fundamentally a human construct, evolving across diverse civilizations with no universally prescribed "right age" for individuals, a particular analytical perspective suggests that within the Indian context, an optimal "sweet spot" emerges. This insight is not derived from religious edicts or divine revelation, but rather from an examination rooted in mathematics and psychology. Specifically, the optimal period identified for marriage in India is between the ages of 25 and 27. This does not negate the possibility or validity of marriage at other ages, such as 22 or 40, but rather positions this range as the most advantageous window. Understanding the rationale behind this "sweet spot" requires an exploration of why earlier and later ages might present greater challenges. The Case Against Earlier Marriages (Prior to 25) Before 18: Marriage before the age of 18 is strongly discouraged due to ongoing brain development and its ...
read more »

The Secret Sauce of Silicon Valley: It's All About Mindset (Not Just Money!)

-
Image
Silicon Valley, this remarkable region in Northern California, has truly been the birthplace of technological revolutions. From the foundational silicon chips and semiconductors that paved the way for mass electronic device production, to Apple's personal computers and smartphones, Google's ubiquitous search engine, Facebook's social media revolution, and Tesla's electric vehicles, its impact is undeniable. Even breakthroughs like SpaceX's reusable rockets and the latest artificial intelligence wave originated right there. This begs the question: What makes it so special, and why can't this success be easily replicated elsewhere, like in India?. As the sources reveal, it's not a lack of capital, talent, or even marketing prowess in India that holds it back. The core difference, the "secret sauce," lies in a fundamental business culture and mindset – specifically, how one approaches companies, failure, and risk. Let's unpack the key mindset diff...
read more »

Stop Chasing a "Career" and Start Building a Portfolio of "Projects"!

-
Image
Let me tell you, what I'm about to share might just flip everything you thought you knew about your professional life on its head. For years, we've been conditioned by institutions, perhaps even our colleges, to think in terms of a "career". You pick a field – say, software development or civil engineering – and you’re supposed to stick with it, hoping for a steady, linear progression: a 30% salary increment here, a slightly better title there. But what if I told you that this traditional "career" mindset is actually limiting your potential for true growth and impact? The Trap of the Linear Career Path Imagine Sheila, a bright computer science graduate who becomes a software developer. Five years down the line, she's still a software developer, perhaps with a modest salary bump. Twenty years later? You guessed it, still a software developer. Her growth is painfully linear, devoid of the exciting leaps and diverse opportunities that define truly successfu...
read more »