Homework Task of Tron Fan Club Tutorial || Basic understanding of Cryptocurrency and Blockchain Technology

Hello Tron Fan Club, this is my first entry on Homework Task by professor @engrsayful In this community and I'm glad you all will be able to read it. The questions I'm to answer will be based on my understanding and I hope it'll be enough to be accepted as one of the winners in this assignment.

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Q1. Explain the security feature of blockchain

Blockchain technology creates a structure of data with advance security qualities. It's based fundamentals of cryptography, and decentralization, which credence in transactions. In most blockchains, the data is built into blocks and each block contains a transaction or a group of transaction. Each new block connects to the previous blocks in a cryptographic Chain in a way that it's almost impossible to tamper with. All transaction in the blocks are verified and agreed upon by a consensus mechanism, making sure that each transaction is correct and true.

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Blockchain enables decentralization through the partakers of members across a distributed network. There is no trace of failure and a single user cannot alter the records of transactions.

Q2. What do you mean by mining in Blockchain?

Blockchain mining is a process created to secure and verify transaction. The mining is done my members who run the Blockchain server. Blockchain with it advance security system provides a decentralized feature by which for it to work effectively when new blocks are added to the chain, it must be verified by member associated with the server in which they watch other the transaction to keep it secured. These individuals are given reward as appreciation and That's how mining in Blockchain works.

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The Blockchain miners adds transaction to the global public ledger of past transaction. In this ledgers, blocks are maintained by Blockchain miners and are connected to each other forming a chain.

Q3. What do you mean by DPoS system of mining? And differentiate between Proof of Stake and Proof of work

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Delegated Proof of Stake (DPoS) is a type of blockchain mining after Proof Of Stake(PoS) and Proof Of Work (PoW) which I'm explain later. This Blockchain mining system uses a voting system where a few delegates will secure the network on their behalf. The delegates can also be called Witnesses and they are in charge for achieving Consensus during the creation and verification of new blocks.

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An example of this DPoS system is our dear platform Steemit. The miner as we all know them as witnesses and only about 20 of them are allow to mine within a period of time before another selection is conducted to select new miners.

Differentiate between Proof of Stake and Proof of work

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Proof of work (POW) and proof of state (POS) are the two common Blockchain consensus algorithm which create transparency and security through decentralization. They both serve as gateway to ensure the right transaction is validates before joining the Blockchain. Let's find out how the two system work.

-Proof of work (POW)

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Proof of Work(PoW) is the original consensus algorithm in a blockchain system of networks. The algorithm is used to validate transaction and creates a new block to the chain. In this system, miners(group of people) compete against each other to complete the transaction on the network. This process of competing against themselves is called mining. As soon as a miner successfully creates a confirmed block, he/ she gets rewarded. Bitcoin is famous for using this method.

Producing Proof Of Work can be quite difficult, there's a lot of trial and error required before a valid proof of work is generated. The working principle of proof of work is a Mathematical Puzzle which miners try to solve puzzle which in turn, create a hash function for an upcoming block which contain transactions in the blockchain system. If the puzzle is gotten correctly, the miners are been rewarded with a token (cryptocurrency) depending on the blockchain.

-Proof of Stake (PoS)

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Proof of stake is the second type of consensus mechanism used to validate cryptocurrency transactions. In this system, the owners of the Cryptocurrency can stake their coins, which bestow them the right to review new blocks of transaction and add them to the Blockchain. This is an alternative to proof of work, which is the first consensus mechanism designed for cryptocurrencies. With proof of stake been more energy efficient, it has gain more popularity as it's attention has changed the crypto world.

The proof of stake works by allowing owners of cryptocurrencies stake their coins and create their own validator nodes. Staking is a process whereby an individual pledge his couns to be used for verifying transactions. Your coins will locked up when you stake them, but you also have the option to unstakke them when you want to trade them.

Q4. Why is boundary less trading important?

Boundary less trading means a situation where any individual in the world can trade irrespective of border, race, gender, government policy and Currencies. In today's world, there is conflict virtually everywhere you go. All these factors are what's obstructing the world economy to grow because When superpower countries like USA places a sanction on a particular country like Russia, itself and their allies will not be able to conduct any business activities with the sanctioned country.

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The world economy is in the hands of just three major currencies, USD, Pound And Euro, and if these currencies are in short supply, the world economy Will be drastically affected. But no need to worry since cryptocurrency has created an opportunity that enables an individual to be in charge of their money. With the presence of blockchain technology we don’t have to fear any sanction from any governments.

Q5. Differentiate between Cryptocurrency and blockchain

Cryptocurrencies are digital assets that are created using a computer networking software that provides secore trdaing and ownership. The term cryptocurrency comes from Cryptography which is used by developers to guard against fraud.
Cryptocurrencies like Bitcoin and many others are supported by a technology called Blockchain which maintains an alter- resistant record of transactions and keep track of owners.

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Most cryptocurrencies uses decentralized system which is based on blockchain technology. Blockchain technology is a way of disbursing records through several linked network (computer) in form of blocks.

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Blockchain technology is a system of recording information in such a way that makes it impossible or difficult to alter, hack or cheat the system.

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A Blockchain is a digital ledger of transaction that is Identical and disbursed across the entire network of computer system on the Blockchain. Each block in the chain contains a list of transaction and every time a new transaction occurs in the Blockchain, a record of that transaction is added to every partaker's ledger. Blockchain are decentralized, which means they work without a central authority such as government or a bank. These inventions solved a problem faces by previous attempts to create pure digital currencies, preventing people from making copies of their staking and trying to spend them twice.

Thank you all for reading see you in the next assignment... Peace 🕊️

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