Mini Crypto Program Part 3 || "Understanding of Blockchain", by @nurdeen
Good day, fellow learners on this platform. I am very delighted to be part of this platform. Thanks to all steamians across the globe for their active stay on this platform. I hereby thank our able community and @liasteem for initiating this program to help us understand cryptocurrencies. The home post by @liasteem on the following questions:
What do you know about blockchain?
Describe one type of blockchain!
Explain the advantages and disadvantages of the type of blockchain you choose!
Visit Blockchain Demo, and what did you learn from that page? (screenshot required)
Explain the advantages and disadvantages of using blockchain technology!
Conclusion!
Blockchain records are kept in such a way that changing, hacking, manipulating, or cheating in the system is extremely difficult. Blockchains store information in blocks that are networked or chained together. As new data or information comes in, it is entered into a fresh block. immediately block is feed with data, it is chained onto the previous block, which makes the data chained together in an orderly manner.
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Blockchain, in the context of bitcoin, is the record-keeping technology behind the bitcoin network. In bitcoin, blockchain is used in a decentralized way so that no individual or collective person has control, all users together retain control. All transactions or activity of an individual on the blockchain can be monitored by others on the blockchain.
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Data entered into public blockchains is unchangeable, which means data is difficult to get rid of. For bitcoin, this means that transactions are stored and viewable to anyone. Blockchain technology may seem complicated, but its core concept is simple and easy to understand. A blockchain is a type of database. To understand blockchain, it is good to first know what a database actually is.
There are basically two types of blockchain: private and public blockchain. However, there are several other types too, like consortiums and hybrid blockchains. These types of blockchains share some similarities among themselves. As per the question specification, I will explain what a public blockchain is.
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The public blockchain is open to all individuals and permission-less distributed ledger systems. To become part of the blockchain network, you must have an interconnection to become an authorized node on the network. verification of transactions, proof of work for incoming blocks and mining can be done by authorized node on the network and has a legitimate right to access current and previous records. Public blockchains are basically used for mining and exchanging cryptocurrencies. Bitcoin and litecoin blockchains form the root of common public blockchains. Public blockchains are highly safe if the users strictly follow security rules and measures. It is only risky if users are not complying with the security rules governing the blockchain.
1.Trustable-unlike in private blockchain, two users or participants do not need to worry about the authenticity of the other. They don’t need to know the personality of the nodes as the process of proof of work makes sure there can be no fraud in transactions. One can blindly trust public blockchains without feeling the need to trust the individual users.
2.It is decentralized, using a peer-to-peer network of computers. This means that all nodes have control over the blockchain at their endings. They monitor all activities on the blockchain and it is non-restrictive as to centralized systems.
3.No one person has control over the data-since public blockchain is non-restrictive, manipulation of data of other nodes can’t be done by any node on the platform.
4.The validators and participants in the blockchain remain anonymous-nodes on the blockchain by networking the individuals in their various endings. Participants may/not physically know each other, which is not even the mission being on the blockchain.
1.Consensus mechanism-some public blockchains like bitcoin use a proof of work consensus mechanism where participants need to solve a complex mathematical puzzle to validate a transaction. It requires an increase in the cost of resources to operate.
2.In public blockchains, one does not need to prove his or her identity and just commit their processing power to become part of the network.
3.Speed-this is one of the shortcomings of some public blockchains like bitcoin, which process only 4.6 transactions per second, whereas other companies can process about 170 transactions per second.
1.When I visited the blockchain demo page, there were some menus on top of the page and the blockchain menu was active.
2.There were some other menus at the top of the page.
3.A hash is a combination of random numbers and letters produced by entering different data.
It is consist of alphabets and numbers that specifically represent data.
Properties of a hash:
i.Hash has a fixed length.
ii.Same data always maps to same hash.
iii.hash value map to a data
iv.Is easy to compute.
v.Is infeasible to convert hash to data.
vi.Any change of character leads to a large change in hash
.To generate a correct hash code, click on mine to generate a valid hash code. A valid hash have three zeros at its beginning and invalid hash has a light red background.
3.Block menu is part of the menus consisting of block, nonce, data and hash. block hold a series of numbers. Nonce is the number needed/used to find a correct/valid hash.
4.Blockchain is also part of the menus at the top of the page consisting of different blocks and nonce numbers.
.With blockchain technology, business processes are protected with the help of a high level of security. Security for blockchains is a key priority for every blockchain. Because there would be hackers attempting to steal node accounts and money.
.The hacking threats against your business will be reduced to a greater extent because all activities are monitored by the individual nodes or the company to make sure any kind of hacking threat is eliminated to ensure the credibility of the blockchain.
.As blockchain offers a decentralized platform, there is no need to pay for centralized intermediary services.
.Blockchain can not go back-data is immutable.
.Some blockchain solutions consume too much energy. Solutions to some mathematical problems consume tones of electricity to find their solutions.
.Scalability is an issue. Scalability is a problem for decentralized systems as compared to their counterpart centralized systems. In the process of creating new blocks on the blockchain, there is a high probability that the system will perform poorly in its operation.
.The cost and implementation struggle-cost of necessary tools and machines for running is very high and lots of electric power.
conclusion
Blockchains have their information in collective sets, also known as blocks, that hold sets of information. A blockchain is a type of database where different nodes are stored in different blocks and chained together to form a decentralized system. The four types of blockchain: public, private, consortium, and hybrid blockchains, are all in the form of databases. All blockchains are databases and not all databases are blockchains. The public blockchain is non-restrictive and immutable. Proving of identity is not necessary as there is proof of work on the platform and monitoring by all nodes on the blockchain.
i invite @salamdeen, @prudence1 and @bravo03 to learn more about cryptocurrencies organized by steem for better life community.
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Thank you for participating in MINI CRYPTO PROGRAM PART 3
Is a pleasure
Dear @nurdeen ,
Thank you for participating in this Mini Crypto program, I really appreciate your good intentions and your efforts in understanding our practice this time.
Blockchain has 3 important parts and you didn't mention it.
you have good understanding about blockchain, but You didn't explain about blockchain detail.
This learning will greatly benefit you to be in Crypto Academy later, because we are in cryptocurrency-based social media, and Cryptocurrency is in blockchain technology.
Don't repeat the same words too much.
Thank you very much, we will waiting for your next exercise, and we will waiting you at the season 4 of Crypto Academy. 👍💪
Has been assessed by;
@liasteem
@steem.education