BlockChain → Á Mystêry

Now don’t blush as you have read my first script discussing why people are scared of reading any Blockchain related thing & the excellent points presented by Forbes. In this script & as promised earlier, I am going one step ahead to know more about it.

Starting with the three types of Blockchain available in technology space :
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1 . Public Blockchain (e.g. Bitcoin)

Considered as decentralized and secured, but how ? anyone anywhere can access (read & write) the data which is validated by every participant (nodes) making it part of a secure network. One-liner ~ It is also known as permission less blockchain, means open for everyone.

2 . Private Blockchain ( e.g. Ripple)

This type is partially decentralized but it’s highly trusted, reason ? It has permission access, allowing the person to read & right only after permission of the owner of technology. One liner ~ Only owner has access of verification/validation of data, given the time plus lot of pressure.

3 . Hybrid Blockchain (e.g. Ethereum)

In terms of decentralization, it is similar to private. However, it gives access of validating to few nodes which makes it more efficient. One-liner ~ Accessible to only few participants/ owner into the network.
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We have learned so far that blockchain is an accurate record of everything happening on the network, it means we know the participants (nodes) & we also know it is more secure when it gets validated by more than one user & it continues.

Blockchain is also known as ‘Distributed Ledger Technology’ (DLT). For every modification, we will know the participant name & what changes have been made so far and get stored into a ledger.
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The significance of ledger is that it is extremely difficult to alter any information once it is recorded, as this would create a disparity in the chronology of the code sequencing. Also, the modifier name will be stamped for more clarity.

Challenges in Blockchain

The development community is small, available code snippets don’t work & bugs are silent.
Existing implementation rely on rare design patterns, that we don’t learn in universities (e.g., Facebook was in trouble while they were searching for blockchain experts to make the payment system more secured)
Developer gets unnecessary power which is a risk when technology is not matured enough
Last but not least, it’s very difficult to comprehend the code
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Advantages of Blockchain

There is no need for a trusted third party to validate the process
A consensus mechanism is used to agree on the validity of the transactions
Blockchain transactions are visible to everyone, this allows the system more transparent & well established
Once the data is written, no one can manipulate the past transactions

Wondering when I listened from TED Talks about Blockchain where they confess on becoming a prosperous economy from the sharing economy and loved the below quote :

Rather than re-distributing wealth,

Could we pre-distribute it ?

Could we democratize the way that

wealth gets created in the first place?
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Albeit, many companies are still working on launching the blockchain products making everything connected in seconds or milliseconds. Internet of things would be the underlying cause where robots gonna control the world on an order of one line of us. When it comes to the finance industry, the settlement process can become a much easier process when middle party/clearing counterparty gets removed & one secured platform will be made to settle the transactions.

Want to read more about it? I will request you to wait for my third script ;) Meanwhile, thank you for your time & stay connected !!

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Note: This document with all the information in it is shared here to boost our knowledge of blockchain and crypto ecosystem, the original document can be found in document source, I have on ownership right over the document.

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