Blockchain Basics
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Blockchain is a distributed ledger or database that records transactions across a peer-to-peer network. It allows digital information to be recorded and shared in a way that makes it difficult to alter, hack, or cheat the system. Nodes on the network validate transactions using cryptographic algorithms to achieve consensus on the single record of data. In the future, blockchain may enable applications like digital identity management, smart contracts, decentralized finance, improved supply chain management, and secure Internet of Things networks.
Blockchain Basics
- 2. blockchain • A blockchain is a type of distributed database or ledger—one of today's top tech trends—which means the power to update a blockchain is distributed between the nodes, or participants, of a public or private computer network. This is known as distributed ledger technology, or DLT
- 3. blockchain in simple terms? • mation in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
- 4. how does it work? • A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.
- 5. Blockchain example • Blockchain example: Bitcoin • The purchase and sale of Bitcoin is entered and transmitted to a network of powerful computers, known as nodes. This network of thousands of nodes around the world vie to confirm the transaction using computer algorithms. This is known as Bitcoin mining.
- 6. purpose of block chain? • The purpose of the blockchain is to share information amongst all parties that access it via an application. Access to this ledger in terms of reading and writing may be unrestricted ('permissionless'), or restricted ('permissioned').
- 7. Who owns a blockchain? • Summing up. To put it succinctly, nobody owns blockchain technology, and yet, everybody owns it. That is one of the unique features of blockchain tech, and this collective ownership and accountability is what makes blockchains very secure and immutable.
- 8. types of Blockchain • Public Blockchain. It is a permissionless distributed ledger on which anybody can join and conduct transactions. ... • Private Blockchain. A blockchain network operates in a private context, such as a restricted network, or is controlled by a single identity. ... • Hybrid Blockchain. ... • Consortium Blockchain.
- 9. Which language is used in blockchain? • Blockchain Programming developers support the use of C++ as it is decently abundant in terms of run-time polymorphism, function overloading, and multi-threading. It allows developers to mold the data according to their needs
- 10. How does Blockchain Technology work? • One of the famous use of Blockchain is Bitcoin. Bitcoin is a cryptocurrency and is used to exchange digital assets online. Bitcoin uses cryptographic proof instead of third-party trust for two parties to execute transactions over the internet. Each transaction protects through digital signature
- 11. Distributed Database: • There is no Central Server or System which keeps the data of the Blockchain. The data is distributed over Millions of Computers around the world which are connected to the Blockchain. This system allows Notarization of Data as it is present on every
- 13. A network of nodes • : A node is a computer connected to the Blockchain Network. Node gets connected with Blockchain using the client. Client helps in validating and propagating transaction on to the Blockchain. When a computer connects to the Blockchain, a copy of the Blockchain data gets downloaded into the system and the node comes in sync with the latest block of data on Blockchain. The Node connected to the Blockchain which helps in the execution of a Transaction in return for an incentive is called Miners
- 15. Disadvantages of current transaction system: • Cash can only be used in low amount transaction locally. • Huge waiting time in the processing of transactions. • Need to third party for verification and execution of Transaction make the process complex. • If the Central Server like Banks is compromised, whole System is affected including the participants. • Organization doing validation charge high process thus making the process expensive.
- 16. Building trust with Blockchain: • Blockchain enhances trust across a business network. It’s not that you can’t trust those who you conduct business with its that you don’t need to when operating on a Blockchain network. Blockchain builts trust through the following five attributes:
- 17. • Distributed: The distributed ledger is shared and updated with every incoming transaction among the nodes connected to the Blockchain. All this is done in real-time as there is no central server controlling the data. • Secure: There is no unauthorized access to Blockchain made possible through Permissions and Cryptography. • Transparent: Because every node or participant in Blockchain has a copy of the Blockchain data, they have access to all transaction data. They themselves can verify the identities without the need for mediators. • Consensus-based: All relevant network participants must agree that a transaction is valid. This is achieved through the use of consensus algorithms. • Flexible: Smart Contracts which are executed based on certain conditions can be written into the platform. Blockchain Network can evolve in pace with business processes.
- 18. Benefits of Blockchain Technology: • Time-saving: No central Authority verification needed for settlements making the process faster and cheaper. • Cost-saving: A Blockchain network reduces expenses in several ways. No need for third-party verification. Participants can share assets directly. Intermediaries are reduced. Transaction efforts are minimized as every participant has a copy of shared ledger. • Tighter security: No one can temper with Blockchain Data as it shared among millions of Participant. The system is safe against cybercrimes and Fraud. • Collaboration: It permits every party to interact directly with one another while not requiring third party negotiate. • Reliability: Blockchain certifies and verifies identities of every interested party. This removes double record, reducing rates and accelerate transactions.
- 19. Future of blockchain • Finance, supply chain management, and the internet of things are just a few of the sectors that blockchain technology has the power to upend (IoT). The following are some potential uses for blockchain in the future: • -Digital Identity: Blockchain-based digital IDs might be used to store personal data safely and securely as well as offer a means of establishing identity without the need for a central authority. • -Smart Contracts: A variety of legal and financial transactions could be automated using smart contracts, self-executing contracts with the terms of the agreement put straight into lines of code. • -Decentralized Finance (DeFi): Using blockchain technology, decentralised financial systems might be built that support peer-to-peer transactions and do away with conventional intermediaries like banks.
- 20. • Supply Chain Management: Blockchain technology can be applied to a permanent record of how goods and services have been moved, enabling improved openness and traceability across the whole supply chain. • -Internet of Things (IoT): Blockchain technology may be used to build decentralised, secure networks for IoT devices, enabling them to exchange data and communicate with one another in an anonymous, safe manner. • In general, blockchain technology is still in its early stages and has a wide range of potential applications