What is Bitcoin?
According to the whitepaper, Bitcoin is a peer-to-peer electronic cash system which allows in online payments transaction to be sent directly between one party to another without going through a financial institution. In year 2008 financial crisis caused a lot of member to lose trust in banking systems as trusted third parties. Bitcoin made a digital transaction possible without a trusted intermediary. This technology allowed this happened with scale, globally cryptography.
What is Blockchain?
A chain of blocks which contains information, the technique is intended to timestamp digital document so that it’s not possible to backdate them. Blockchain it is used for secure transfer of items like money, property, contracts, etc. without requiring a third-party intermediary like bank or government. If once data is recorded in blockchain it’s very difficult to change. Blockchain’s a public ledger of information collected through a network, it’s sitting on top of the internet. This is how information is recorded that gives blockchain its groundbreaking potential. A software protocol (like SMTP is for email). However, blockchain could not run without the Internet. It is called meta-technology as it affects other technology. It is comprised of several pieces of the software application, database, some connected computers, etc. The blockchain is not a Bitcoin, but it’s the technology behind Bitcoin.
Bitcoin is a digital token and blockchain is the ledger to keep track who owns the digital token, we can’t have Bitcoin without blockchain but we can have blockchain without Bitcoin. The blockchain is a chain’s of blocks which contain information. Data which is stored inside a block depends on the type of blockchain it is used. For Sample, A Bitcoin Block contains information about the number, Sender, Receiver of bitcoins to be transferred. The entirely new way of documenting data on the internet. The technology used to develop blockchain applications, such as messengers, storage platforms, social networks, games, exchanges, voting systems, prediction markets, online shops & much more. In this sense, it’s similar to the internet.
Here is a great video about Block-chain Developer:
Why do we need Blockchain?
Some reasons why Blockchain technology has become so popular-
- Resilience: Blockchain is often replicated architecture. Chain is still operated by nodes in the event of a massive attack against the system.
- Time reduction: In financial industry, blockchain plays a vital role by allowing the quicker settlement of trade which does not need a long process of verification, settlement, and clearance because a single version of agreed-upon data of the share ledger is available between all stock holders.
- Reliability: Blockchain certifies and verify identities of the interested parties. This clear’s double records, reducing rates and accelerates transaction.
- Security: Attacking traditional database is the bringing down of a specific target. Which helps of Distributed Ledger Technology, each party hold a copy of the original chain, so the systems remain operative, even the huge number of other nodes fall.
- Transparency: Changes made to public blockchains are publicly viewable to everyone. This offers a greater transparency, and all transactions are immutable.
- Collaboration – Parties can transact directly with each other without any need of mediating third parties.
This type of blockchains, ledgers visible to everyone on the internet. It will allow anyone to verify and adds a block of a transaction to the blockchain. The public network has incentives for peoples to join and free for use. Anyone can access to public blockchain network.
In this type of blockchain is within a single organization. It allows only specific people of the organization to verify and add transaction blocks. However, everyone on the internets is generally allowed to view.
In this Blockchain variant, only a group of organizations can verify and add transactions, ledger can open or restricted to select groups. Consortium blockchain is used for cross-organizations.
Agricultural & drone sensor networks
Smart home networks
Smart home sensors
Personalized robots, robotic component
Finance & Accounting:
Digital Currency Payment
Payments & Remittance
Decartelized Capital markets using a network of the computer on the Blockchain
Clearing & Trading & Derivatives
Billing, monitoring and Data Transfer
Quota management in the Supply Chain Network
Transnational personalized governance services
Voting, propositions P2P bond,
Digitization of documents/ contracts and proof of ownership for transfers
Registry & Identify
IP registration and exchange
Tax receipts Notary service and document registry
What is Cryptocurrency ?
Cryptocurrency is a medium of exchange like traditional currencies such as USD, but it is designed to exchange digital information through a process made possible by certain principles of cryptography. A cryptocurrency is a digital currency classified as a subset of alternative currencies and virtual currencies.
Blockchain vs. Shared Database:
|Operations||Insert||Create/ Read/ Update and Delete|
|Replication||Full replication on every peer||Master-slave Multi-master|
|Consensus||Most of the peers agree on the outcome of transactions.||Distributed transactions which held in two phases commit and Paxos.|
|Validation||Global rules enforced on the whole blockchain system.||Offers only local integrity constraints|
|Disintermediation||It is allowed with blockchain.||Not allowed.|
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