Steemit Crypto Academy Contest / S8W1 - The Importance Of Blockchain Technology
Blockchain technology is simply a network of nodes. This means that blockchain is a network that is connected to nodes. Nodes are what validate transactions or data that occur within a blockchain network. To this end, blockchain can allow you and I to create and operate a node, which makes the technology more transparent, which is why it is decentralized.
However, even with how transparent blockchain technology is, it still has some major issues arising in the existing system of blockchain technology.
What are the main issues arising in the existing system of blockchain technology?
The main issues arising in the existing system of blockchain technology have been highlighted and discussed below.
1. Security
As secure as blockchain technology is, there are still issues of security. For example, if a person wanted to have access to data that is shared within an exclusive blockchain, they would only need access to one node. With this type of security, it means that once one device is hacked in a blockchain, it will affect the others. Also, in the existing blockchain technology, it is impossible to forge a transaction, but very possible to get a transaction that is fraudulently approved without minding if it is a stolen asset or not.
2. Scalability
Scalability is another issue existing in a blockchain technology, and the more a blockchain technology grows, the more vulnerable it becomes. Sometimes, because of the redundancy of blockchain technology, it is hard to scale. This is because every device in the network must have a copy of every transaction that is carried out in the blockchain network, starting from the Genesis block down to the current transaction, meaning one piece of data would have hundreds of copies. With this kind of issue, mass storage is required, which may lead to energy consumption.
3. Energy Consumption
Like I've said before, mass storage in blockchain technology can lead to higher energy consumption than a centralized technology. Blockchain technologies require more storage, and the more they store data, the more energy they consume. More electricity will be required to take care of each node. In a simple sense, more resources are required to maintain blockchain technology.
4. Regulation
Blockchain technology has no central authority, meaning no one can enforce laws or other rules in the technology. There is nothing like a leader or a regulatory body. Since there are no backup regulations, most people are afraid of investing since our government is the major fighter of the network.
Explain to us some of the key features of blockchain technology.
Currently, the most exciting technology is blockchain due to its unique features.
1. It cannot be corrupted.
Blockchain technology cannot be corrupted since every node on the blockchain network has its own original copy of the digital ledger or transactions that occur in the network. Before a transaction is added to the network, every node will need to check the validity of the transaction. This is what brings about transparency and makes blockchain technology free from corruption.
2. Increased Capacity
This is another great feature of blockchain technology. The most notable thing about this blockchain technology is that it increases the capacity of the whole blockchain network. Because there are a lot of computer nodes working together, which in total offers a great deal of power, there are fewer devices where the things are centralized.
3. Immutability
This is another notable feature of blockchain technology. The creation of an immutable ledger that cannot be changed is what makes blockchain more valuable; it means any data that is entered into the network cannot be changed, hacked, or edited.
4. Faster Transaction
Our traditional banking systems are very slow when we are carrying out transactions, probably because they require a lot of settlement time and usually take days to proceed. This is one of the main reasons why these local banking or financial institutes need to upgrade their banking systems to the blockchain.
This problem can be solved by integrating blockchain technology, which can settle money transfers at really fast speeds. With blockchain technology, you can send money to someone in another country very quickly.
5. Decentralized System
This is another super-good feature of the blockchain technology, as it gives everyone access to their own assets rather than having a third party manage your assets or data for you. Blockchain technology has proven to us that the technology is a very effective tool for decentralizing the web, which could be nothing short of a revolution in the world of the internet (the world wide web).
Give a basic and simple understanding of how blockchain technology works.
When talking about how blockchain technology works, it is important to know that the combination of three technologies, such as cryptographic keys, peer-to-peer (P2P) networks, and a means of computing and storing transactions, is the way in which blockchain technology works. Although, when looking at how blockchain technology works in a proof of work (PoW), the technology has a combination of blocks, nodes, and miners.
A digital database known as the blockchain network is made up of encrypted data blocks that are "chained" together and protected by a challenging mathematical equation. Since the blockchain keeps a highly accurate and secure record of prior acts, the mathematical problems requiring matching numeric values and hashes are virtually impossible to alter afterwards. The blockchain technology is equally dispersed among various decentralized nodes, preventing ownership or control by any third party.
Provide an understanding of how we can be able to use zero-knowledge proof for authentication.
My understanding of how we can be able to use "zero knowledge proof" for authentication is by providing the real validation of our information with us. reviewing such information again. In this case, zero knowledge proof for authentication will also be used to have access online, most especially on services that require the identity of someone before the person has full access to his or her information. In this case, the prover of the information is the third party, and likewise, the verifier is the one responsible for validating the claim.
Inconclusion We can use zero-knowledge proof for authentication to have access to our information without reviewing our personal information again.
Advantages and Disadvantages of Blockchain Technology
Below are the advantages and disadvantages of blockchain technology.
Advantages of Blockchain Technology
One of the advantages of blockchain technology is that transactions usually take place without the approval of a third party. As a crypto trader or investor, you can purchase cryptocurrency without hiring a financial advisor. Also, in addition to this, you can buy crypto without waiting for the bank to process your payment for you.
Another advantage of blockchain technology is that you can lend or borrow funds without the involvement of any financial institutions, and transactions are processed very quickly, which is one of the biggest features of blockchain technology.
Blockchain technology supports the creation of new classes of applications and business models that everyone can have access to. Blockchain technology has brought about a lot of decentralized applications, such as blockchain-based NFTs and several other DApps.
Disadvantages of Blockchain Technology
One of the disadvantages of blockchain technology is that it is new, it looks so complex to people, and it is expensive to manage.
Another disadvantage of blockchain is the problem of integration. All blockchain applications have a lot of social benefits, but they are very difficult to integrate with off-chain data or legacy systems. Beside this, blockchain technology is hard to develop, and some developers find it difficult to install a blockchain server.
I am so happy to present my entry, which I also want to invite my friends @yakspeace @temitopef, and @roomi to also join.
Unfortunately @jasminemary, checking your post on the GPT-2 Output Detector gave us a 99% chance that the pros and cons of blockchains were generated by ChatGPT.
Do not use this tool to generate answers to our questions as it is considered plagiarism. Warning: Do not return to this practice so as not to mute your participation in our competitions.
Noticed :
Invalid entry
Hello sir, @kouba01, please I don't understand what you mean by ChatGPT, because everything was written by me and I didn't just used one day to write this article sir. Please can you clarify me more on what is GPT-2 or AI because am shock right now by your reply.
We use this tool to discover answers that are automatically generated by artificial intelligence. Are you serious about not knowing about ChatGPT? It is not a denial more than a surprise. In any case, you can verify for yourself this link:
https://openai-openai-detector.hf.space/
I have gone through the link sir. But to be honest with you my content is free from artificial intelligence, ChatGPT, or Plagarism sir.
There will be other check by the platform administrators, and they will confirm or deny that.
Cc @steemcurator01
Sir @kouba01, the screenshot is where I type my post before taking it to https://quillbot.com/grammar-check for correction.
From the image you can see. But if you still insist that my works in invalid it is fine and good.
Hii @jasminemary
Thanks for sharing your quality blog. I appreciate your efforts in creating this article. You have explained well about some issues in the implementation of the and Technology. These are scalability security and energy consumption issues if these issues are resolved the blockchainTechnology will move towards more betterment.you have rightly explained about the key features of Blockchain technology such as immutability, non corrupted technology etc.
Immutability is the key features of the blockchain technology it ensures the no change in the transaction or no involvement of third party. You have also explained about the advanced and really impressive method of verifications that is Zero-knowledge proof.
It is used in many apps or websites to get acess to their data after authentication.No personal information is required for this authentication.
At last you have explained well about the advantages and disadvantages of the technology.
I agreed with you no third party involvement enhance the users trust.It is a major advantage of the blockchain.
Thanks for sharing your content.I appreciate your efforts.
Good luck for the contest.
I appreciate your support my dear friend.
Thank you dear friend for providing an informative post on blockchain technology, its key features, and issues arising from its existing system. It is true that blockchain technology has unique features that make it secure, transparent, and decentralized. However, as you have highlighted, there are major issues such as security, scalability, energy consumption, and regulation that need to be addressed to ensure its full potential is achieved.
Moreover, you have given a clear and concise explanation of how blockchain technology works by combining cryptographic keys, peer-to-peer networks, and computing and storing transactions. This approach makes blockchain technology secure, transparent, and immutable, which is vital for keeping a highly accurate and secure record of prior acts.
Lastly, your explanation of zero-knowledge proof for authentication is very helpful. By providing validation of our information without revealing the actual information, zero-knowledge proof can be used for online authentication, especially on services that require identity verification. Overall, this post is insightful and informative. Keep up the good work! I have already posted my blog on the topic, if you have time plz do read that too
Thank you so much for your kind support.
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
please click it!
(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)
The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.