Welcome to Blockchain
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We’re on a mission to educate the masses on the transformative potential of blockchain technology. On this website, you’ll find the latest updated articles explaining the concept of Blockchain and its different functionalities covering everything from computer security to finance. Being a new concept, it’s doubtful and suspicious for some people. We aim to dilute your doubts by explaining the concept simply.
Without any further delay, let’s dive down into the sea of treasures and learn together The Blockchain.
A blockchain is a set of blocks tied together by a chain. These blocks are called nodes of computer networks and the information is stored digitally. The best and most practical use of blockchains is in cryptocurrency systems. It was used in Bitcoin to maintain safe and secure decentralized data. It is not controlled by one but a shared network. A blockchain consists of essentially three concepts blocks, nodes, and miners.
Blocks Or Nodes in Blockchain
Have you ever heard of nodes in Blockchain technology? What function do they play in Blockchain? What are various types of nodes?
- A Blockchain consists of many blocks of data.
- These are stored on nodes that can be compared to small servers.
- On a blockchain, all these nodes are joined to each other and continuously exchange the newest information on the blockchain.
- All nodes are updated.
- The nodes store, spread, and preserve the blockchain data that is why blockchain exists on nodes.
- Therefore, nodes are called frameworks.
- Nodes can be any computers, laptops, or servers.
What is the function of nodes?
- A miner tries to add a new block of transactions to the blockchain, the nodes transmit information of the block to all the nodes on the network.
- the nodes can accept or reject the block based on the block’s validity of the block’s signature and transactions.
- Let us understand it by a simple example :
Jack(a “node”) has a file of transactions on his computer (a “ledger”). James and Heena (let’s call them “miners”) have the same file on theirs (so it’s “distributed”). As Jack makes a transaction, his computer sends an e-mail to James and Heena.
James and Heena will check whether Jack can pay their salary in “Bitcoins”. The first to check and validate hits “REPLY ALL”, attaching their logic for verifying the transaction (“proof of work”). If all agree, everyone updates their file…or we can say that these three people are blocks or nodes of different computers and this is called Blockchain Technology.
Types of nodes :
There are mainly two types of nodes.
- Full nodes
- Lightweight nodes
- Miner nodes
- Listening nodes
Full nodes support and provide security to the network. They download the complete history of the blockchain to implement the rules. They maintain the understanding among other nodes to ensure the correctness and verification of the data on the blockchain by storing a copy of the blockchain.
Lightweight nodes maintain the connection among users outside the blockchain. A lightweight node is each user in the network who needs to connect to a full node to synchronize to the current state of the network to be able to participate.
Miners nodes: These are nothing but the BItcoin miners present throughout the world.
Blocks=Nodes=Computers=BLOCKCHAIN TERMINOLOGY
Future Solutions, Decentralized
Web3.0 Image Source _pixabay
Defi means Decentralized Finance
Distributed Ledger on nodes, no manipulation of data
Prevalent use of artificial intelligence (AI), Unchangeable Codes, Metaverse, NFT ,
Machine learning, and peer-to-peer(P2P) networks.
Smart Contract
Doubts? Decentralization and permissionless systems will create more control likely to limit the data extraction over their data. image source pixabay
Therefore, A blockchain is a set of blocks tied together by a chain. These blocks are called nodes of computer networks and the information is stored digitally. It was used in Bitcoin to maintain safe and secure decentralized data. A blockchain consists of essentially three concepts blocks, nodes, and miners.
What are the types of Blockchain?
There are four types of blockchain networks — public blockchains, private blockchains, consortium blockchains, and hybrid blockchains.
Public blockchains
A public blockchain has no access restrictions. They are permissionless, allow anyone to join, and are completely decentralized. Public blockchains allow all nodes of the blockchain to have equal rights to access the blockchain, create new blocks of data, and validate blocks of data.
Some of the largest, most known public blockchains are the bitcoin blockchain and the Ethereum blockchain.
Private blockchains
A private blockchain which may also be referred to as managed blockchain is a permissioned blockchain controlled by a single organization. In a private blockchain, the central authority has the power to authorize and determines who can be a node. The central authority also does not necessarily grant each node equal rights to perform functions.
Both private and public blockchains have drawbacks – public blockchains tend to have longer validation times for new data than private blockchains, and private blockchains are more vulnerable to fraud and bad actors. To address these drawbacks, consortium and hybrid blockchains were developed.
Hybrid blockchains
A hybrid blockchain has a combination of centralized and decentralized features. Hybrid blockchains are blockchains that are controlled by a single organization, but with a level of oversight performed by the public blockchain, which is required to perform certain transaction validations. An example of a hybrid blockchain is IBM Food Trust, which was developed to improve efficiency throughout the whole food supply chain. One big example that uses hybrid blockchain in the supply chain is the IBM food trust. They aim to improve efficiency throughout the whole food supply chain. It is a network where everyone, including farmers, wholesalers, distributors, and others, takes part. Walmart is also an active player in this project.
Consortium Blockchains
These are permissioned blockchains governed by a group of organizations, rather than one entity, as in the case of the private blockchain. Consortium blockchains, therefore, enjoy more decentralization than private blockchains. Consortium blockchain offers the new kid on the block to join the established structure and share information instead of starting from scratch. This technology helps organizations to find solutions together and save time and development costs. Consortium blockchains are also known as Federated blockchains. Examples :
Logistics, Insurance and Healthcare, Banking and Finance.
Top Frequently Asked Questions On Blockchain Technology
What Is Blockchain?
A blockchain is a set of blocks tied together by a chain. These blocks are called nodes of computer networks and the information is stored digitally. The best and most practical use of blockchains is in cryptocurrency systems. It was used in Bitcoin to maintain safe and secure decentralized data. It is not controlled by one but by a shared network. A blockchain consists of essentially three concepts blocks, nodes, and miners.
What type of Data Can Blockchain Store?
Blockchain is a Distributed database that is stored in nodes and they are called blocks.
- These are stored on nodes that can be compared to small servers.
- On a blockchain, all these nodes are joined to each other and continuously exchange the newest information on the blockchain.
- All nodes are updated.
- The nodes store, spread, and preserve the blockchain data that is why blockchain exists on nodes.
- Therefore, nodes are called frameworks.
- Nodes can be any computers, laptops, or servers.
What are the Types of Blockchain?
There are four types of blockchain networks — public blockchains, private blockchains, consortium blockchains, and hybrid blockchains.
Can blockchain be hacked or not?
The codes in Blockchain will be embedded in Digital code and stored in a shared database that protects the data from deletion, tampering, and modification. Though Blockchain is a very influential technology, it is not entirely immune to attacks.
What are the Key features of Blockchain?
Blocks=Nodes=Computers=BLOCKCHAIN TERMINOLOGY
Future Solutions, Decentralized
Web3.0 Image Source _pixabay
Defi means Decentralized Finance
Distributed Ledger on nodes, no manipulation of data
Prevalent use of artificial intelligence (AI), Unchangeable Codes, Metaverse, NFT,
Machine learning, and peer-to-peer(P2P) networks.
Smart Contract
Doubts? Decentralization and permissionless systems will create more control likely to limit the data extraction over their data. image source pixabay
How Does Blockchain Work?
ack(a “node”) has a file of transactions on his computer (a “ledger”). James and Heena (let’s call them “miners”) have the same file on theirs (so it’s “distributed”). As Jack makes a transaction, his computer sends an e-mail to James and Heena.
James and Heena will check whether Jack can pay their salary in “Bitcoins”. The first to check and validate hits “REPLY ALL”, attaching their logic for verifying the transaction (“proof of work”). If all agree, everyone updates their file…or we can say that these three people are blocks or nodes of different computers and this is called Blockchain Technology.
Is it Possible to Create a Token On Ethereum Blockchain?
Yes, it is possible to create a token on the Ethereum blockchain, Since Ethereum is an open-source blockchain.