Crypto Academy Contest / S1W3 – Reviewing Blockchain through the concepts. by @beckie96830
Welcome to week 3 of the steemit engagement challenge. I'm impressed by the inclusiveness initiative to encourage active participation and engagement of users, and the growth of the steem Blockchain.
The crypto academy community wants participants to discuss their favorite concept or term related to Blockchain and its benefits. In this post, I will be discussing my favorite concept.
Question
Discuss your favorite concept or term related to Blockchain
The Block of A Blockchain
The term Blockchain is comprised of unique encrypted digital records called Block, that are linked with similar digital records through indexing. These digital records permanently contain the details of transactions performed in a blockchain network. The details include block ID(height), the hash of the block and hashes of the transactions, the sender and the receiver's addresses, and the Timestamp of the transaction. Blocks are stored and secured such that once saved, they cannot be modified, hacked, or removed from the link of blocks created.
One of the primary features of a blockchain is decentralization. This implies that the digital records can be accessed by any node connected within the blockchain network. When a cryptocurrency transaction is initiated, a copy and status of the transaction are updated to the digital record (blocks), which is updated and redistributed to all the connected nodes within the Blockchain. This is achieved with the use of Distributed Ledger Technology (DLT). Any given block has three essential properties that are peculiar to the block. They are, Data stored in the block, A 32-bit number called nonce which is generated when a block is created, and a 256-bit set of unique alphanumeric characters, and called Hash, which is used for block indexing.
Blockchains are engineered to be secured with a cryptographic function that combines encryption and hashing. It uses a one-way encryption function, that ensures that the hash of an input can not generate the input value. This implies that any changes made within a block change the structure of the blockchain and require that the entire block will be recalculated (remind). It's arguably one of the most secured technologies in the world today. Don't your think so too ?
The Genesis Block
The natural principles that guild existence recognize the starting point of any given event. Relating this to blocks of a Blockchain, the concept of genesis block was created. The genesis block refers to the first-ever block created by the hashing of the first-ever transaction in a blockchain in the crypto world. The genesis block is characterized by not having a parent block ID, and a block height of 0 (in some cases 1, like in that of Ethereum and Steem). Since it is the first block, it is linked to all other blocks within the blockchain.
There are multiple Blockchains within the crypto ecosystem, and each blockchain traces its origin back to the genesis block that contains the first transaction recorded on the Blockchain. This is actually possible because of the transparent nature of Blockchain technology. In an attempt to further explain this, I will investigate the genesis block of the Bitcoin Blockchain because of its sentimental value as the first Genesis block of the first Blockchain.
The Bitcoin Genesis Block
Bitcoin and Blockchain technology was introduced to the world in 2009 by Satoshi Nakamoto, whose true identity is unknown to date. Satoshi Nakamoto performed the first cryptocurrency transaction through the bitcoin network, which created the genesis block of the first Blockchain. Bitcoin broke many barriers in decentralized finance as it is credited for being the first cryptocurrency to exist, created the first block of the first blockchain, and performed the first transaction in the cryptocurrency world. This was indeed a monumental feat achieved against the ridged centralized banking system. I'm sure you can agree to that as well!
The genesis block was created on the 3rd of January 2009. The genesis block had a Block ID (height) of 0, with no parent block referenced. The genesis block contained 1 transaction, which entailed the transfer of 50BTC to this BTC wallet address: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
As of today, the BTC wallet's current value is at 68.5360671 BTC which is equivalent to $2.2M, with over 3,327 transactions recorded.
In my opinion, the blocks of every Blockchain form the basis of blockchain technology architecture, while providing transparency and a secured network.
Question
Why do you think it is important in the blockchain?
Importance of Blocks In Blockchain Technology
Blocks are very important constituents of the Blockchain because of the significance of their role within the ecosystem. Some of its importance include the following:
Blockchain data Storage
As previously explained, the blocks stores and record the unmodifiable blockchain data in form of transactions performed on the Blockchain, this helps in verification of on-chain transactions and traceability of every on-chain transaction recorded.Blockchain Security
Blocks stored within the Blockchain improve the security of the Blockchain as the stored data can't be deleted or modified. This creates a robust layer of data integrity and security I'm blockchains.Programmable
The block activities on a blockchain can be programmed to function automatically where transaction status is updated and recorded across the blockchain network automatically. This ensures that every transaction block is generally accepted by validators in form of mining.
Question
Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?
In my opinion, I think the Blockchain wouldn't exist without the concept of blocks and block data storage because it forms the basis of the technology. When the name Blockchain is dissected, you get block and chain. This simply implies having blocks of transactions linked together. This goes far to prove that the basis of blockchain technology is built around the formation of blocks and their contents. I say this because one of the primary purposes of Blockchain technology is to promote a decentralized, transparent, trustless finance system, and this can only be achieved when the generated on-chain data is immutable, distributed, and above all secure.
As of this moment, I can't think of any possible alternative approach or method to the current blocks used in Blockchain technology. Probably because all the required boxes in creating decentralized finance are checked off.
Question
Do you think it is possible to improve this term in some way? Explain us how
The concept of a block in a blockchain has many great features and attributes that best suit the requirements of a blockchain. But in my opinion, I would like the implementation of the reversibility function in blockchain transactions. The current block structure in blockchains only sort to verify the validity of the blocks using the hashing algorithm, and this precludes the ability of the block to reverse its contained transaction in an event of wrong or invalid address input by either the initiator or the receiver.
It's no news that wrong address input can lead to loss of funds in the cryptocurrency ecosystem, this can arise as a result of omissions which is a common mistake.
In an attempt to solve this problem, I think the best approach is to validate the sending or receiving address before validating the transaction block, such that when an address is deemed incorrect or inactive, the transaction can reverse to the initiator. Though this takes direct shots at the anonymity feature of blockchains that tends to protect the identity of connected nodes. I still consider it fair in an attempt to reduce the chances of losing funds to unintended mistakes with high stake consequences.
This draws the curtain on my favorite term Block that is associated with Blockchains
Steem on!
Thank you for reading!
Block are the basic of blockchain, they're linked to each other, the genesis block as you've explained is the first block and it's where other blocks are built.
You've explained in an easy to comprehend language, thank you for sharing I enjoyed reading
The concepts of blocks and Blockchain technology fascinate me indeed. Thank you for reading.
That's very true. The block forms this essential part of any Blockchain thus the name.
Thank you for enlightening my knowledge on blocks. I thought I knew more until I read your post. It is a beautiful read.
Yeah blocks are indeed the basis of Blockchain technology. Thank you.
You have done so well in explaining blockchain blocks and your emphasis on the Bitcoin Genesis block is quite superb.
I encourage you to keep your high energy up.
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Thank you.
Yeah, the Bitcoin Blockchain and its Genesis block was the first of many feat achieved by the creation of cryptocurrencies.
Thanks for reading.
Nice post, you've done a great breakdown of the importance of this concept.
It is indeed a very important concept in Blockchain technology.
Thanks for reading.
es un gusto siempre leerte con esa publicación de calidad
You have done a great job explaining Blockchain and talking at length about the genesis block. No doubt, the block is an important feature in Blockchain as it contains the data of our transactions and stores it securely, and blocks of different transactions make up the blockchain.
Also it would be nice if there can be an improvement on the reversibility function you mentioned above. I think networks have worked on that a bit, example is when you are about to send to an address off-network, it notifies you that it's not correct but I believe there can be more improvement. Well done and good luck.
Yeah, the reversibility function should really be considered. This could really save a lot of people from misplacing their hard earned money on-chain
Que bueno poder leer sobre este tema tan importante como lo es Blockchain.
Este tema se la base de todo el ecosistema y el entender como funciona un bloque dentro de la cadena de bloques es vital para poder entender cada procedimiento.
Indeed, blocks form the basis of Blockchains.
WOW, thanks for this excellent content friend, you can see the effort and quality of the post as you read it
Yes. Thank you for visiting.
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I am proud of you, especially since you graduated from MOUAU.
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Well, I am glad that you enjoyed reading my academy posts. It was my pleasure helping you get through yours.