Steemit Crypto Academy Contest / S8W1 - The Importance Of Blockchain Technology

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Hey guys

We have been presented with another round of steemit engagement contest and this is the first week of the eighth season.

Before I go into the details, I want to thank everyone for endeavoring to read this post.

The blockchain has done many great role in the social lifestyle of humans and it has incredibly boost the modernisation of the world today. Irrespective of that fact, it still has its flaws which nevertheless has not as much impacted negatively to the existence of the blockchain.

WHAT ARE THE MAIN ISSUES ARISING IN THE EXISTING SYSTEM OF BLOCKCHAIN TECHNOLOGY

So far, the blockchain technology has been one of the best in performing diverse transactions. However, it has its own flaws and these flaws makes it to be slow, and insecure.

One of the main issue with the blockchain system of transaction is it's security. As we most people know, the blockchain is decentralized, which makes it difficult to protect users against hacks or cyber thefts. Due to the decentralization of the blockchain, hackers could easily perform their actions without leaving a trace for investigation.

Scalability: The storage of transaction records is performed on tons of nodes, which makes it difficult for the blockchain to properly handle large amount of records.

Additionally, There are thousands if not millions of blockchain networks out there. However, this is a good thing as it facilitates the growth of the network, but at the same time, it sets limitations to the potential of the blockchain thus making it difficult to exchange data within the ecosystem.

Decision making: Well, the system of decision making in the blockchain has helped to boost the security of the system, but at the same time, it has made it difficult and slow in signing a transaction. For e.g, if Mr A send 50 BTC to Ms B, plenty people will have to sign the transaction, else it will not be valid.

Another point is that - the higher the transaction (the more people transact) the slower the blockchain system and the lower the amount of people transacting, the faster the blockchain.. this is just a hypothesis I've come up with though.

EXPLAIN TO US SOME OF THE KEY FEATURES OF BLOCKCHAIN TECHNOLOGY

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The blockchain has many interesting features and it is very similar to a ledger.

1. Transparency: The blockchain is transparent in the sense that the transactions have to be validated by different nodes, and after the validation, it is placed public for other users to see it.

Decentralization: The blockchain is maintained and run by many computers and nodes in it's system, which gives no chance for a central authority. What the masses says, goes.

The transactions in the blockchain cannot be tempered with and are very much secured.

The blockchain has a very good security which makes it difficult for intruders to temper with the information in it.

GIVE A BASIC AND SIMPLE UNDERSTANDING OF HOW BLOCKCHAIN TECHNOLOGY WORKS

In a ledger, all transactions are safely recorded. That's how it is with the block chain system but other people (in form of nodes) have to approve the transaction before it could be recorded.

When a payer or buyer performs a transaction on the blockchain, they will have to submit it for verification. During the verification process, The transaction will be broadcasted to all of the nodes in the blockchain, and these nodes will then validate the transaction with the help of some tools. After the validation, the transaction will be added to a block of other transactions that occured in be same time frame this bring about a chain of blocks(transactions). After this, the block be added to other blocks which will bring about the completion of the validation, after which it'll be recorded in a public ledger and made accessible to the public and it'll be very difficult to delete.

PROVIDE AN UNDERSTANDING OF HOW WE CAN BE ABLE TO USE ZERO KNOWLEDGE PROOF FOR AUTHENTICATION

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So speaking of ZKP, Zero Knowledge proof (zkp) is a basically a technique used as a proof to show how correct a piece of information is without directly showing the information itself.

It helps in the protection of users information and it improves efficiency.
ZKP can be used in the field of cryptography and authentication process thus protecting the privacy of users.

It's a kinda of like Google capcha but in this one, the verifier sends random questions to the person and the user uses the technique to proof that he has the required information without actually showing the information.
After this, the verifier further the correctness of the information using the Zero-proof knowledge. Successful verification means that the user will have a chance of authentication and the users information aren't retained.

However, Things tht have an advantage also have a disadvantage and the disadvantage of ZKP is that it is complex to use.

ADVANTAGES AND DISADVANTAGES OF BLOCKCHAIN TECHNOLOGY
The blockchain technology is the leading technology so far and it has helped in everyday transaction.. let me use my country for example:

Currently, we are facing cashless economy in Nigeria and bank transfers is not working.. we use money to buy our own money in Nigeria. We the citizens have money but we can't liquidate their money into cash and use it. Now, the blockchain have made it easy for people who uses it, and now transactions can be made without any stress.

Decentralization: There is no central authority to regulate anything tht happens in the blockchain, meaning that - anything the users say, goes.

Security: The security of the blockchain is strong to the effect that nobody can easily temper with it.

Efficiency: the blockchain has made it possible for transactions to be fast and at the same time, efficient.

Transparency: The data of transactions are approved by nodes afterwhich it is Publicly stored in the blockchain so that Anyone can access it where ever or when ever they want.

THE DISADVANTAGE OF BLOCKCHAIN INCLUDES

1. Complexity: without appropriate learning, it could be very complex to learn and utilize.

2. Electricity: In other to properly run the blockchain, lots and lots of electricity is consumed everyday. For example, computing power is required to approve a transaction and these power runs on electricity.

3. If there is a mistake when compiling blocks, the mistake cannot be changed.

CONCLUSION

The blockchain has really help humanity to take a huge towards the world of financial technology. Adequate knowledge of the blockchain will help an individual properly operate even in a cashless economy like Nigeria. It is however important to be very careful with tbe blockchain as saved and stored transactions cannot be changed.

Thank you for reading. I invite @jueco, @cryptoloover and @juichi to join the contest.

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