Hey readers, Welcome to Yognut. Today we are going to deep dive into the most trusted and safest technology, can you guess? Yes, we are talking about Blockchain. Now we are living in the era of most advanced technology that developed till this date. But, with increasing its advancement, there is an increase of chance to be attacked by the harmful notorious person known as hackers.
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With the development of every technology, they find a way to breach it but Blockchain is currently available safest and strongest technology that challenging them to get it to breach out. Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin. The interesting fact about blockchain except for safety once it created it can’t be deleted further, you can see from the first created blockchain till now. The invention for blockchain made bitcoin as a currency for money transfer without the need for a trusted authority or central server.
In 1991 Stuart Haber and W. Scott Stornetta described first work on a cryptographically secured chain of blocks. The incorporated Merklee trees were first to design in 1992 by Bayer, Haber, and Stornetta which give access to allow several documents into one block. This method gives a new way to develop a chain of blocks. Later this design was implemented by Nakamoto as a core component of cryptocurrency Bitcoin, which serves as a public ledger as a transaction on the whole network.
In August 2014 total blockchain file includes all the transaction details reached to 20 GB until 2017 ut grows up to 100 GB in size.
In May 2018, Gartner found that only 1% of CIOs indicated any kind of blockchain adoption within their organization, and only 8% in short term” planning or looking actively to experiment with blockchain”.
Structure and Component of Blockchain
Blocks: Each block hold batches of valid transaction that are hashed and encoded into Markle tree. It holds cryptographic hash of the prior block in the blockchain that links the two and this iterative process confirms the integrity of previous bocks and forms a chain of the block called blockchain.
Block Time: The block time is the average time it takes for the network to generate one extra block in the blockchain. Some blocks in blockchain created frequently in 5 seconds and at the time of block completion, the data inside the block becomes verifiable. Generally, short blocks take less time and do the transaction faster. For example, the Etherum block takes between 14-15 seconds while bitcoin takes 10 minutes.
Decentralization: Peer-to-peer blockchain networks lack a centralized point of vulnerability that computer crackers can exploit; because it has no central point of failure. For this Blockchain used public and private key methods for its security. A public key is an address on the Blockchain that every person that includes int the transaction can look through information which is for a public purpose. A private key is like a password that gives its owner access to their digital assets. Data stored on the Blockchain is generally considered incorruptible.
Openness: Open Blockchain is more user-friendly than some traditional ownership records because of it open to the public, yet it requires some physical access to view. Because in early-stage blockchains were permissionless, which give controversy to its definition.
Uses of Blockchain:-
Most of the cryptocurrencies in the world use blockchain for transaction and security purposes because it keeps a record of all the transactions. For example, bitcoin and Ethereum network use blockchain technology. On 8 May 2018 Facebook confirmed it’s going to open a new Blockchain group and is going to launching its own cryptocurrency.
2. Smart contracts
Now smart contracts are used to write with the help of blockchain because it can be partially or fully executed or enforced without human interaction. One of the main objectives of a smart contract is automated escrow. IMF discussion report says that smart contracts based on blockchain are safer and can be used for general purposes. But due to the ban on this technology in many countries, it’s not used widespread.
3. Financial services
Major portions of the financial industries now using this due to it’s occurring faster than expected. Banks are interested in this technology because it has the potential to speed up back-office settlement systems.
Blockchain gives rise to new digital assets like STO/DSO through which used this for company shares, intellectual property, real estate, art, or individual products.
4. Video games
Now Blockchain enters the field of video games in the form of tokens. Cryptocurrency can be used to catalogue game assets (digital assets). Many more games like Cryptokitty use token standards that supported by blockchain
5. Supply chain
There are a number of efforts and industry use to apply blockchain in supply chain logistics because with this technology company can track its item delivery location or its quality. Now big giants like Wallmart and IBM are running a trial to use a blockchain-based tracking service.T
6. Other uses
Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, tracking digital use and payments to content creators, such as wireless users or musicians.
Types of Blockchain:-
1. Public blockchains
A public blockchain has absolutely no access restrictions. Anyone with an Internet connection can send transactions to it as well as become a validator (i.e., participate in the execution of a consensus protocol).[self-published source?] Usually, such networks offer economic incentives for those who secure them and utilize some type of a Proof of Stake or Proof of Work algorithm.
Some of the largest, most known public blockchains are the bitcoin blockchain and the Ethereum blockchain.
2. Private blockchains
A private blockchain is permission able. One cannot join it unless invited by the network administrators. Participant and validator access is restricted
3. Hybrid blockchains
A hybrid blockchain has a combination of centralized and decentralized features. The workings of the chain can vary based on which portions of centralization decentralization are used.