Blockchain Technology: need and benefits in 2022

A Gentle Introduction to Blockchain Technology:

People use the term “blockchain technology” to mean different things, and it can be confusing. Sometimes they talk about Bitcoin Blockchain, sometimes it’s The Ethereum Blockchain, sometimes it’s other virtual currencies or digital tokens, sometimes it’s smart contracts. Typically, though, we’re talking about distributed ledgers—a list of transactions that are repeated across multiple computers instead of being stored on a central server.

Common themes seem to be a data store that:

• usually contains financial transactions

• repeats in real-time on a wide range of systems

• usually exists on a peer-to-peer network

• uses encryption and digital signatures to prove identity, authenticity and read/write copyright

• may be written by some participants

• may be read by some participants, perhaps a wider audience, eg.

• have mechanisms that make it difficult to change historical data, or at least easier to detect when someone tries

I see ‘blockchain technology’ as a collection of technologies, much like a Lego bag. You can take several stones from the bag and put them together in different ways to get different results.

BITCOIN BLOCKCHAIN   OFFER

Bitcoin blockchain ecosystem

As an introduction to bitcoin, it can be useful to research a good introduction to bitcoin.

The Bitcoin Blockchain ecosystem is actually a complicated system due to its dual goals: that anyone can write Bitcoin Blockchain; and that there should be no centralized power or control. Relax and you don’t need much of Bitcoin’s intricate mechanics.

That said, let’s start with the Bitcoin Blockchain ecosystem and then try to separate the blockchain block from the bitcoin.

Repeated databases. The Bitcoin Blockchain ecosystem serves as a network of repetitive databases, each containing the same list of bitcoin transactions. Important members of the network are called validators or nodes, which transmit transaction data (payments) and block data (additions to the ledger). Each validator automatically confirms payment and blocks the data sent. There are rules to keep the network working as expected.

Bitcoin’s complexity stems from its ideology. Bitcoin’s goal was to be decentralized, which means it doesn’t need a checkpoint and is relatively anonymous. This influenced the development of bitcoin. Not all blockchain ecosystems need to have the same mechanisms, especially if participants can be identified and trusted for commerce.

Public vs private blocks

There’s a big difference in the technologies you need, depending on whether you have someone who writes for your blockchain and whether you have someone who writes for your blockchain or known and valued participants. Bitcoin can theoretically be written in your ledger by anyone (but in practice, only about 20 people/groups do this).

Public blockchains. Accounting books can be “public” in two ways:

1. Anyone can write data without permission from another authority

2. Anyone can read the data without permission from another authority

When people talk about public blocks, it usually means that anyone can write.

Since bitcoin is designed as an “anyone can write” blockchain, where participants are not reviewed   and can be added to the ledger without approval, there are ways to resolve the differences (there is no “boss” other than decide not to do so). to do this). decisions) and defenses against attacks (all can act with relative impunity if there are financial incentives). Create costs and complexity to manage this blockchain.

Private blockchain. On the other hand, there is a ‘private blockchain network in which the participants are known and trusted: for example, an industrial group or a group of companies belonging to an umbrella company. Many of the mechanisms are redundant – or rather, replaced by legal contracts – “I’m negotiating because you signed this piece of paper.” Change the technical decisions about which bricks are used to build the solution.

Another way to describe public/private may be participants without consent against consent or pseudonyms against identified participants.

DEPTH PLEASE

Warning: this section is not that lenient as it covers each of the above elements comprehensively. I recommend having a cup of tea.

DATA ARCHIVE: What is a blockchain?

A blockchain is just a file. A blockchain itself is just a data structure. That is, how the data is compiled and logically stored. Other data structures include databases (rows, columns, tables), text files, comma-separated values   (CSV), images, lists, and so on. You can think of a blockchain that competes more with a database.

By analogy, a book is a series of pages. Each page of a book contains:

• the text: for example the story

• information about you: at the top of the page there is usually the title of the book and sometimes also the number or title of the chapter; at the bottom, there is usually the page number that indicates where you are in the book. This “data about the data” is called metadata.

Similarly, each block in a blockchain block has:

• block content, eg. Bitcoin, i.e. bitcoin transactions and mining detection compensation (currently 25 BTC).

• A ‘Head’ contains information about the block. In bitcoin, the header contains technical information about the block, a reference to the previous block, and a hash of the data in the block. It is important to classify this hash.

Order Blockchain Blockchain

• Page by page.  Once you have extracted and moved all the pages, you can easily put them back in the correct order.

• Block by block. In blockchains, each block refers to the previous block, not by “block number”, but by the block’s fingerprint, which is smarter than a page number because the fingerprint itself is determined by the block’s content.

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