Blockchain Consultants

Blockchain Transformations Done Here

What is Blockchain

A detailed history of blockchain: From the Establishment to Broad Adoption

A detailed history of blockchain From the Establishment to Broad Adoption

Blockchain has gotten an ample amount of appreciation in the most recent couple of years, with the potential to come across as an extraordinary power to transform businesses. Blockchain technology is a computerized record of an action that is copied and conveyed across the whole organization of the blockchain platform through computer networks. Sounds confusing, isn’t it? Truth to be told, Blockchain is much easier to understand than the above description.

For understanding the concept, it is feasible to look back at its historical background and learn about its origin to significant turns of events and innovations. Bits of knowledge into the background of Blockchain will assist us with addressing these queries like the exact meaning of the term,  working environment, problems it can solve, and where it can be implemented. All these insights will help us to place the right expectations for its future.

Table of content

  • What exactly is Blockchain?
  • When did the Blockchain first appear?
  • Who is behind blockchain technology?
  • How is Blockchain created?
  • Identifying a suitable Use-case
  • Selection of Suitable Consensus protocol
  • selection of a suitable platform
  • Node designing
  • Designing the Blockchain parameter configuration
  • APIs
  • Building admin and user Interfaces
  • Adding smart technology
  • Closing Thoughts.

What exactly is Blockchain?

A blockchain is a disseminated network that comprises computer systems associated with the Internet, which all together keep the account of transactions. In the Blockchain, one record is dispersed and protected across the system. Each computer in the group approves the exchanges. However, nobody has power over the network, not like various clients functioning in a centralized network. 

A blockchain incorporates a sequence of blocks, which are information units used to store value-based data of the organization. To add a block into a blockchain, these steps ought to occur:

  • When an exchange is performed, then it should be confirmed by a group of computer networks. The exchange should be compiled in a block; after getting approval from the network group. The digital signature of the sender and the receiver and the dollar’s value has to be stored in a block. 
  • A block should be given a hash to separate it from different blocks. This block additionally contains data of the hash of the newest added block into a blockchain. When hashed, this block can be put into the Blockchain.
  • After the inclusion of a new block in the Blockchain, the complete information of this exchange will be public, and any user in the network can explore this exchange data, for example, who sent it? Who received it? Who added this exchange to the block? When did the exchange occur? And so on. The information is apparent and auditable yet not editable.

A block is only digital data. A “chain” is characterized as a common information base. In this way, when we say Blockchain – we intend to discuss the digital data which is kept in a public data set.

When did Blockchain first appear? 

The very first appearance of Blockchain was seen in 2008. It was introduced by an individual named ‘Satoshi Nakamoto.’ Nakamoto improved the blockchain structure effectively, utilizing a Hashcash-like strategy to keep records of time and date of added blocks without expecting them to be endorsed by a central party and embedding boundaries to balance out the rate at which blocks were to be added to the chain. Next year, this blockchain structure was recognized as a central part of the cryptocurrency bitcoin, where it acts as the public record for all exchanges carried on the network. 

In August of 2014, the size of stored records of all exchanges that have happened on the bitcoin blockchain network filled up to 20 GB. In January 2015, the size had reached nearly 30 GB. This size expanded from 50 GB to 100 GB between January 2016 to 2017. While reaching halfway to 2020, this record size exceeded 200 GiB.

Who is behind Blockchain technology?

It is essential to learn about the historical background of Blockchain for Blockchain supporters and Blockchain prospects. Thus, to help readers to comprehend the Blockchain advancement, let us learn the  history of this technology:

1991-2008: Creation Period of  Blockchain Technology

Blockchain emerged in 1991  when W. Scott Stornetta and Stuart Haber deliberated what the world has come to know as a “Blockchain.” Their early work included shaping a cryptographically secured blockchain where nobody could alter timestamps of records. 

In 1992, they updated their technique to consolidate Merkle trees that improved proficiency hence providing the assortment of more reports on a solitary block. Nonetheless, in 2008, the term “Blockchain” began to acquire importance when Satoshi Nakamoto ingrained his idea of Blockchain in the blockchain space. 

Satoshi Nakamoto is credited as the master of blockchain innovation. There is not much knowledge about Nakamoto as individuals speculate he could be a single person or a group that molded Bitcoin, the primary application of digital roster technology.

How is a Blockchain created?

Here are steps that are needed to create a blockchain:

Step 1: Identifying a suitable Use-case

There are three use-cases where blockchains do very well:

  • Data Authentication and Verification: It focuses on encryption, inflexible storage and digital signatures, creation of private and public keys, and verifying digital signatures.  
  • Smart Asset Management: This focuses on disbursement, revenue, trade, bond, and retirement. In crypto, real-world properties are represented in the form of a token, for example, land, infrastructure, gold, silver, oil.
  • Smart Contracts: This focuses on trade between dealer and buyer with smart contracts.

Step 2: Selection of Suitable Consensus Protocol

Depending on your requirements, you need to choose the right consensus protocol among:

  • Deposit based consensus
  • Proof of stake
  • Delegated Proof of Stake.
  • Derived PBFT
  • Byzantine fault-tolerant
  •  Federated Byzantine Agreement
  • Redundant Byzantine Fault Tolerance
  • Federated consensus
  • Proof of Elapsed Time
  • Simplified Byzantine Fault Tolerance
  •  Round Robin

Step 3: Selection of a Blockchain Platform

This depends on your choice of consensus protocol. Many of them are cost-free and open source. Here are some examples:

Ethereum, Hyperledger Fabric, Quorum,
HydraChain, Stellar, Hyperledger Iroha,
Open chain, Hyperledger Sawtooth Lake, and many more.

Step 4: Node designing

Blockchain systems can be designed as private/public,  permission-less as well as with permission, or even hybrid. 

Another important factor to be considered at this step is whether the nodes are running on-premise or in the cloud. Also, the selection of operating systems and tasks related to hardware configuration such as processors, and memory and disk size is to be done in this step. 

Step 5: Designing the Blockchain Parameter Configuration

Usually, blockchain platforms require a thoroughly plotted configuration for elements like permissions, atomic trades, key management, asset issuance, multiple signatures, address formats, hand-shaking, etc.

Step 6: APIs

Most platforms offer pre-built APIs, while others don’t. The issues that you’ll need APIs for are: 

  • For developing keys and addresses.
  • Conducting auditable processes.
  • Performing data verification by using hash and digital signatures.
  • For holding data and its recovery.
  • Managing smart-asset, I.e., distribution, bond, donations, business, etc.
  • Creating smart contracts.

Step 7: Building admin and user Interfaces

At this step, you’ll select the programming languages. You’ll also have to pick external databases and servers.

Step 8: Adding smart technology 

Boost the potential of your Blockchain solution with the addition of Artificial Intelligence (AI), cloud, data analytics, biometrics, machine learning, and bots.

Closing Thoughts

The Blockchain provides amazing advancements in security, decentralization, transparency, and unchangeable data. These qualities make it a perfect tool for future applications. 

It has marked its territory in many industries, and many more yet have to embed it.

Learn more about blockchain technology and take up a suitable blockchain course at Blockchain Council.

A detailed history of blockchain: From the Establishment to Broad Adoption

Source

Top 30 Interview Questions for Ethereum & Smart Contracts

Top 30 Interview Questions for Ethereum & Smart ContractsAre you planning to prepare yourself for Ethereum interviews and become a successful Ethereum Expert? You have landed on the right page. This article talks about the top Ehereum and Smart Contract interview questions so that you can mentally prepare answers for them.

Table of Contents 

  • Top Ethereum and Smart Contract Questions You Should be Prepared for 
  • Concluding Lines

Top Ethereum and Smart Contract Questions You Should be Prepared for 

1 ) What is Ethereum?

Ethereum is an open software platform based on blockchain that runs on a network rather than running on a single computer. It offers Ethereum developers and experts a decentralized trust-less platform to build and deploy decentralized applications that run on the Ethereum blockchain and whose execution is monitored by thousands of peers.

 2) What is that primary function that powers applications and programs built on Ethereum?

Smart Contracts

3)  What are Smart Contracts?

Smart Contracts can be defined as digital agreements that execute automatically based on real-world input data. They are computer program code capable of facilitating, executing, and enforcing the performance of an agreement utilizing Blockchain technology. 

4)  Explain Ether

Ether is Ethereum’s native cryptocurrency, which is arguably the second most popular digital token after bitcoin (BTC).
Ether can also be termed as a significant fuel for operating the distributed application platform Ethereum.

5 ) How Ethereum differs from Bitcoin?

Bitcoin was created with the aim of providing an alternative to national currencies. In contrast, Ethereum was introduced as an open platform to promote immutable, programmatic contracts and applications via its very own currency, Eth. Where Bitcoin transactions take minutes, Ethereum transactions are executed in seconds. Also, Bitcoin is just a cryptocurrency, whereas Ethereum is also a ledger technology that organizations are utilizing for building new programs and decentralized applications. And out of both the technologies, Ethereum is far more robust.

Want to become a Certified Ethereum Expert? Sign up to the Blockchain Council now!

6) How Ethereum differs from Ripple?

Taking about Ripple, the main aim of Ripple is to allow real-time global payments globally without the usual friction of exchange rates. On the other hand, Ethereum aims at broadening the use of blockchain technology using smart contracts. It enables smart contracts and decentralized applications to be built and run without any downtime, fraud, or interference from a third party. 

Ripple uses a mechanism called Federated Byzantine Agreement (FBA), which works differently to Proof-of-State(PoS), that Ethereum uses as a consensus mechanism.

7) What is EVM?

Ethereum Virtual Machine(EVM) is a decentralized virtual machine handling scripts using the public nodes network.  EVM is operated in a sandboxed environment which is isolated from the main network. It is assumed to be a perfect testing environment.

8)  What is the average block size and block time in Ethereum?

Block size in Ethereum is around 30-50 kb and the block time is approximately 10-15 seconds. 

9) What is Blockchain technology?

Blockchain is a chain of blocks(data) stored on multiple computers (servers) distributed over a vast geographical region. It is a distributed ledger that maintains a copy of all digital assets.

It is said to be a decentralized distributed ledger tracking of one or more digital assets on a peer-to-peer network(P2P).

10) What is a node in Ethereum? How can you connect with a node? 

A node is a computer connected to the network, which is responsible for processing transactions. You can connect to a node by WS-RPC, JSON-RPC, and IPC-RPC.

11 ) Can you “hide” a transaction? Where are transactions stored?

No. It is impossible to hide a transaction, and all transactions are visible to everyone. Transactions are stored in a public ledger.

12) What is the role of the consensus algorithm? Ethereum uses which consensus?

A blockchain’s consensus mechanism ensures that there is agreement among various parties on the current state of the blockchain and determines who can add new blocks of transactions. Further, it ensures that the chain is not re-written.

Ethereum has switched from Proof-of-Work(PoW) to Proof-of-State(PoS) consensus mechanism.

13) How to obtain Ethers?

Ethers can be obtained by mining or by trading Ethers with other cryptocurrencies. 

14) What are dApps?

Decentralized applications (dApps) are digital applications that exist and run on a peer to peer(P2P) network of computers instead of a single computer. 

15) Which programming language is used to write smart contracts and dApps?

Solidity is the primary programming language used for writing smart contracts and dApps. 

16) What is Truffle?

Truffle is an open-source framework for rapid dApp development and smart contract life cycle management. It is considered to be a perfect framework for developers using Ethereum.

17) What are the roles and responsibilities of an Ethereum Developer?

Ethereum developers work on Blockchain enterprise technology framework design and development solutions. They are responsible for preparing system modules, design documents, and system testing documents as per project requirements. He also works on system architecture and the implementation of the blockchain program function module. He participates in the design of security protocols and architecture.

18) Explain DAO.

Decentralized Autonomous Organizations (DAO) is a decentralized organization with one or more smart contracts that can be run by writing a program deployed on the Ethereum Blockchain platform. 

DAO eliminates the need for third-party involvement as it is owned globally by every token holder. 

19) Explain how PoW consensus works.

The central principle behind PoW consensus is to solve complex mathematical problems and make the largest number of guesses as quickly as possible. Such requires a lot of computational power, and by using a more efficient mining machine to run calculations, a miner can maximize profitability in terms of crypto rewards. 

In this type of consensus mechanism, miners compete to be the first one to find a hash regarding a particular block, which can only be solved using sheer computing power to make the largest number of guesses. When a miner finds the right solution, they advertise it to the whole network, receiving a reward in cryptocurrency provided by the protocol. 

20) Explain the Concept of PoS

Proof-of-Stake is a consensus algorithm that deals with the main drawbacks of PoW. In this mechanism, every block gets validated before the network adds another block to the blockchain ledger. Unlike PoW, where miners have to solve complex puzzles, in PoS, miners can join the mining process using their coins to stake. It allows users to mine for rewards using very minimal hardware and software resources. Here, the mining capacity of a particular miner depends on how many coins they already have; thus, the more coins one has, the better chances are, which indicates only the richest can have control of the consensus.

21) State the importance of account nonce in Ethereum?

An account nonce determines a transaction counter in each account. It is helpful in preventing replay attacks. 

22) Define MetaMask.

MetaMask is a cryptocurrency wallet and also a web browser extension used to store, send and receive Ethereum and ERC20. 

23) What are Ethereum wallets?

Ethereum wallets are a piece of software that allows users to interact with their Ethereum account. These wallets are essential because before you can start trading Ether, you need to store it somewhere, and there comes the role of wallets.

24) What do you know about hardware Ethereum wallets?

If you want a high level of security, consider using this wallet. These are more secure because they store private keys on a physical chip. Since these wallets do not require an internet connection, they make your funds completely immune from all types of cyber-attacks and hacks. Moreover, such wallets offer multiple ways to access the keys. 

25) What are the types of Ethereum networks that exist?

These are of three types:

  • Private Blockchain Network
  • TestNet: The Test Ethereum Network
  • Live Network: The main Network

26)  Mention some of the popular Blockchain-based smart contracts.

  1. Ethereum
  2. NEM
  3. Hyperledger
  4. EOSIO
  5. RSK

27) Are there any standards for Smart Contracts?

Unlike legal slot machines, there are no standards and no government agencies that test and verify the accuracy of smart contracts. However, a certain level of trust must exist between the contracting parties. 

28) What is the first thing that you must define in a Solidity file?

The version number of Solidity is the first thing you must specify as it reduces incompatibility glitches that can occur while compiling with another version. 

29) Define Remix?

A remix is an online platform for developing smart contracts. You can use solidity programs and develop your own smart contracts.

30) Gas usage in a transaction depends on which factors? Also, tell me how you can calculate the transaction fee?

Gas usage depends upon two factors: the first is the amount of storage, and the second one is a set of instructions used in a smart contract. 

The transaction fee can be calculated by using the following formula:

Ether = Tx Fees = Gas Limit * Gas Price

Concluding Lines

Hope these interview questions and answers will help you to land your dream job as an Ethereum Expert or a Smart Contract Developer.

If you are a beginner and want to get started as a learned and Certified Etherum Expert, you can get enrolled in Blockchain Council.

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council. 

Top 30 Interview Questions for Ethereum & Smart Contracts

Source

Use Of Blockchain In Corporate Reporting

Use of Blockchain in Corporate Reporting

Wondering how Blockchain can be useful in corporate reporting? Alright, you have landed at the right page. In this article, we will explain what are the challenges in corporate reporting and how Blockchain can fix them.

Table of Contents 

  • What is Blockchain?
  • Challenges in Corporate Reporting
  • How Can Blockchain Help?
  • Conclusion: Does Blockchain Faces Any Limitations? 

What is Blockchain?

A blockchain is a shared database, or you can say a distributed ledger that creates a permanent record of transactions. It is a P2P decentralized distributed ledger technology whose purpose is to establish trust among untrusted parties by mitigating third-party involvement. Provided it has been designed and implemented correctly, it offers complete transparency, immutability, security, and privacy, unlike traditional databases. There is a myth-buster surrounding Blockchain, and that is all blockchains are the same. While many of the well-known blockchain iterations are undertaken on public ledgers, businesses are leveraging Blockchain uses private, permissioned chains to provide greater confidentiality. Technology has become the latest disruptive force that financial and reporting executives are considering when building their long-term plans. 

Challenges in Corporate Reporting

Corporate reporting is a process to create trust and transparency in a company’s financial position through strict rules, regulations, and corporate communications ways. A fundamental component of reporting is an annual corporate report intended to give well-defined information to all involved people about a company’s actions and financial performance during the prior year.
Now, as we have understood the concept of corporate reporting, let’s figure out a few of its challenges.

  • Making corporate reporting engaging and flexible in a multi-stakeholder situation.
  • The expense and sophistication of transaction documentation and consolidation across multiple groups.
  • The challenge of finding a single source from which users can receive accurate, prompt reporting from companies across various jurisdictions and businesses.

How Can Blockchain Help?

As Blockchain is a P2P, distributed ledger, it allows every transaction to be spontaneously accessible to all the network participants. Having such a ledger ensures that records can never be destroyed/modified. 

The current corporate reporting system includes production, auditing, distribution, and consumption, and Blockchain can prove to be helpful in all these processes.

Production and Consolidation
The production phase includes recording and aggregating transactions and consolidating the desired information. The cost and difficulty of tracking and aggregating transactions from different entities from jurisdictions and consolidating the details are included in the processing of financial information. But Blockchain can provide a viable solution by providing a single structured location that enhances accessibility. 

Moreover, there can be issues with the difficulty of integrating financial details from multiple entities. This is because the process by which accounts are consolidated can be difficult, expensive, and time-consuming. For consolidation processes, blockchains could offer efficiency and reliability by acting as a central state ledger.

Auditing
Financial statements prepared by the companies need to be audited, and users have to trust the accuracy of that information as with the traditional process, the concept of trust is central. Due to its decentralized nature, Blockchain can prove to be helpful in confirming the accuracy of all transactions and balances by offering complete transparency. Technology also ensures that all the transactions stored on the network cannot be tampered and thus builds trust automatically into the company’s accounting process.

Moreover, Blockchain can help with the validation and verification of transactions, tracking ownership of assets, providing traceable audit trails, and enabling automated audit processes.

Distribution
Companies are required to distribute information to their regulators, the markets in which they operate, and they have regulatory filing requirements for various parties across different jurisdictions. Blockchain’s use in distribution could improve accessibility and immediate filing of multiple requirements of reporting at national and international levels.

Consumption
Companies want to access distributed information freely and smoothly. Blockchain technology intends to reduce the cost of reporting and act as a corporate communication platform that enables analysts, investors, and others to consume the information efficiently and effectively.

Conclusion: Does Blockchain Faces Any Limitations? 

Corporate reporting is basically an entity-based concept. But challenges remain in terms of costly yet inefficient reporting, error, and manipulation issues. Traditionally, where there has been a demand for aggregate systems, this can be done by requiring specific reporting by aggregating participants’ reporting information to generate a single report, which is possible with the help of Blockchain.

But a single-entity blockchain, however, may suffer from various challenges. Foremost, there is no advantage unless the technology is chosen widely, and for its widespread adoption, there is a need for standardization, and sadly, at present, there is no standardized blockchain. Various chains are set up and function differently, which is not effective for investors. Compatibility is needed for investors, so they will not want to find out how different blockchains operate. 

For achieving Blockchain’s standardization to support interoperability and data exchange among participating parties, more collaboration is needed. Apart from this, scalability and the need for regulations are other issues that Blockchain has to deal with. 

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.  

Use Of Blockchain In Corporate Reporting

Source

A Beginner’s Guide: Hedera Hashgraph Vs. Blockchain

Hedera Hashgraph Vs. Blockchain

Wondering how Hedera Hashgraph differs from Blockchain technology? Well, you have landed on the right page. This article explains what Blockchain and Hedera Hashgrah is and how they differ. 

Table of Contents 

  • What is Blockchain Technology?
  • What is Hedera Hashgraph?
  • How It Differs From Blockchain?
  • Concluding Lines

What is Blockchain Technology?

Before we move on to understand Hashgraph, we just need to get a glimpse of what Blockchain is all about and why it is so hyped? 

So, Blockchain is a peer-to-peer, decentralized distributed ledger technology that maintains the history of transactional data (records) without involving any third-party intermediaries. As the name suggests, in Blockchain, the key concept is the blocks where records are stored safely, and there is no way data can be changed or forged in any way. Its ability to offer complete transparency, immutability, privacy, and security makes it an exceptional technology, but it has some drawbacks too. One of the notable problems that the current Blockchain-based solution is the transfer speed associated with them. Like for instance, Ethereum Blockchain allows 15 transactions per second, whereas Bitcoin allows only 5 transactions per second. Moreover, sometimes, Blockchains can be slow and cumbersome, especially when the user number increases on the network. 

What is Hedera Hashgraph?

Hedera Hashgraph describes itself as the only public decentralized distributed ledger that utilizes the fast, fair, and secure hashgraph consensus mechanism. 

Just like Blockchain, Hashgraph is another DLT devised by Leemon Baird and licensed under the Swirlds Corporation. In fact, it is an improved version of distributed ledger technology that offers security and decentralization by utilizing hashing. Here it is important to note that Hedera is unique and capable of achieving the same result as the most ubiquitous public blockchains, but in terms of energy efficiency, stability and security, it is way better. 

The best part is that, unlike Blockchain, Hedera can process thousands of transactions per second, and thus it doesn’t suffer from the speed difficulty.

Hashgraph lacks a chain of blocks, and to improve its overall efficiency, Hashgraph uses two algorithms, such as Gossip about Gossip and Virtual Voting. 

How It Differs From Blockchain?

Bandwidth and Transaction Speed

Unlike a traditional Blockchain that utilizes Proof-of-work(PoW), which selects a single miner to choose the next block, Hashraph uses gossip-about-gossip and virtual voting as consensus mechanisms. By utilizing these consensus, the hashgraph comes to a consensus on the validity and the consensus timestamp of every transaction. And if the transaction is valid, the state of the ledger will be updated in order to include the transaction with 100% certainty. 

Hashgraph technology is known to provide almost near-perfect efficiency in terms of bandwidth usage and high transaction speed (because transactions can be processed in parallel) compared to the traditional Blockchain. 

Blockchain has a transaction speed of around 100 to 1000 based on protocol implementation like ethereum, hyperledger, etc., whereas Hedera can support 500,000 transactions per second.

Transaction Cost 

When it comes to transactional cost, Hedera Hashgraph outperforms compared to Blockchain. Hedera’s transaction fees are under 1 cent, whereas in Bitcoin, an average transaction fee keeps fluctuating and is around 14.84 (at the time of writing).

Due to its advantages over Blockchain, Blockchain Experts and technocrats believe that Hashgraph could be the next wave of blockchain technology, allowing developers to create apps with high speed, reliability, and security.

 High Computation Power and Electrical Supply

Another advantage of Hedera over Blockchain is that it does not need high computational power and high electrical supply, unlike Blockchain, where mining for the cryptocurrency is power-hungry, involving heavy computer calculations to verify transactions.

Hedera Hashgraph is Fairer 

Hedera proves to be fairer than Blockchain as miners can choose the order of transactions, can delay, or even stop from entering the block if required. But Hedera uses a consensus of timestamps, which prevents people from changing the transaction orders.

Are There Any Drawbacks?

Hashgraph is an innovative technology, but there are some drawbacks. The first and the foremost limitation is its acceptance as it has been deployed in a private and permission-based network and needs to be tested in a public network. Blockchain Experts believe that Hedera Hashgraph’s technology is fascinating, but it is exceptionally intriguing, whose effectiveness can only be realized until it is opened to the public and implemented on a non-permission-based network.

Concluding Lines 

This has brought us to the end of our discussion. Hope you have gained a clear understanding between the Hedera Hash graph and Blockchain technology. 

If the domain of Blockchain interests you, you can get enrolled in Blockchain Council and become a Certified Blockchain Expert. 

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council. 

A Beginner’s Guide: Hedera Hashgraph Vs. Blockchain

Source

What is Blockchain Technology, and How Does It Work?

Are you a Blockchain enthusiast? Want to gain in-depth knowledge about it? This guide will help you in understanding what this technology is all about its benefits and how it works. 

So let’s get started. 

Table of Contents

  • Blockchain: In Most Simple Words 
  • Bitcoin and Blockchain: How They are Related?
  • Working Mechanism of Blockchain
  • Benefits of using Blockchain Technology
  • Concluding Lines: How to Learn Blockchain?

Blockchain: In Most Simple Words 

Blockchain is a peer-to-peer decentralized distributed ledger technology that makes the records of any digital asset transparent and unchangeable and works without involving any third-party intermediary. It is an emerging and revolutionary technology that is attracting a lot of public attention due to its capability to reduce risks and frauds in a scalable manner. 

Now here comes the question why is Blockchain a distributed, decentralized P2P network? A decentralized network offers multiple benefits over the traditional centralized network, including increased system reliability and privacy. Moreover, such networks are much easier to scale and deal with no real single point of failure. The reason why Blockchain is distributed is because of shared communication and distributed processing.

The P2P architecture of Blockchains provides several benefits such as greater security compared to traditional client-server based networks. A distributed P2P network, paired with a majority consensus requirement, provides Blockchains a relatively high degree of resistance to malicious activities. 

Looking for the best Blockchain Certifications? You are just a click away!

Bitcoin and Blockchain: How They are Related?

Although the advent of Blockchain has taken the world by storm, many people still get confused about these two terms. Thus, it is important to understand how these terms differ and how they are interrelated.

Bitcoin is a cryptocurrency, which is an application of Blockchain, whereas Blockchain is simply an underlying technology behind Bitcoin that is implemented through various channels. So if you are working on Blockchain and learning Blockchain, then you are not actually learning cryptocurrency but learning how cryptocurrency works. 

Working Mechanism of Blockchain

Blockchain can be defined as a shared ledger, allowing thousands of connected computers or servers to maintain a single, secured, and immutable ledger. Blockchain can perform user transactions without involving any third-party intermediaries. In order to perform transactions, all one needs is to have its wallet. A Blockchain wallet is nothing but a program that allows one to spend cryptocurrencies like BTC, ETH, etc. Such wallets are secured by cryptographic methods(public and private keys) so that one can manage and have full control over his transactions. 

Now, this is how Blockchain works. Initially, when a user creates a transaction over a Blockchain network, a block will be created, representing that transaction is created. Once a block is created, the requested transaction is broadcasted over the peer-to-peer network, consisting of computers, known as nodes, which then validate the transaction. 

A verified transaction can involve cryptocurrency, contracts, records, or any other valuable information.

Once a transaction is verified, it is combined with other blocks to create a new block of data for the ledger. 

 Here it is important to note that with each new transaction, a secured block is created, which are secured and bound to each other using cryptographic principles. Whenever a new block is created, it is added to the existing Blockchain network confirming that it is secured and immutable.

Benefits of using Blockchain Technology

We have learned a lot about Blockchain technology. Now let’s explore what its benefits are.

Immutability

In a traditional database, you have to trust a system administrator that he is not going to change the data. But with Blockchain, there is no possibility of changing the data or altering the data; the data present inside the Blockchain is permanent; one cannot delete or undo it. 

Transparency

Centralized systems are not transparent, whereas Blockchain (a decentralized system) offers complete transparency. By utilizing blockchain technology, organizations and enterprises can go for a complete decentralized network where there is no need for any centralized authority, thus improving the transparency of the entire system.

High Availability 

Unlike centralized systems, Blockchain is a decentralized system of P2P network which is highly available due to its decentralized nature. Since in the Blockchain network, everyone is on a P2P network, and everyone has a computer running, therefore, even if one peer goes down, the other peers still work.

High Security 

This is another major benefit that Blockchain offers. Technology is assumed to offer high security as all the transactions of Blockchain are cryptographically secure and provide integrity. Thus instead of relying on third-party, you need to put your trust in cryptographic algorithms. 

Concluding Lines: How to Learn Blockchain?

Learning Blockchain is easy now, all thanks to reputed online courses and training sessions. Blockchain Council is one such organization that offers online training and certification programs to aspiring trainees to render them desired competencies so that they have a successful career in the Blockchain space. Keeping the rising demands of blockchain professionals in mind, Blockchain Council certifications are diversified to meet each aspirant’s discrete needs. Right from understanding what Blockchain is, the certification covers a variety of basic and advanced level topics.

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.  

What is Blockchain Technology, and How Does It Work?

Source

Verified by MonsterInsights