What is Blockchain Technology?

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What is Blockchain Technology?

What is blockchain technology? is one of the most frequently heard question in on the web portals. Though the answers to the questions are straight forward, there are many things which we do not know about what is blockchain technology?

Blockchain is an unquestionably clever innovation and the discovery of a person or group of individuals known by the fictitious name, Satoshi Nakamoto. But ever since then, it has developed into rather larger, and the central question people ask around is, what is Blockchain? Let me explain…

Blockchain technology

Blockchain is a method of taping information in a manner that makes it hard or impossible to alter, hack, or deceive the system. It is a time-stamped string of unchangeable records of data that is handled by a constellation of computers not owned by a single unit. A blockchain is a digital ledger of contracts that are copied and spread across the whole network of computer organizations on the blockchain.

Each block in the chain comprises several transactions. Every time a new contract occurs on the blockchain, a record of that transaction is tallied to every participant’s ledger. This distributed database controlled by multiple members is known as Distributed Ledger Technology (DLT).

The blockchain network has no main authority, which indicates a democratized structure. While it is a common and unchangeable ledger, the data in it is open for everyone to see. Consequently, everything that is constructed on the blockchain is by its very nature visible and everybody engaged is accountable for their activities.

How Blockchain Works?

Wondering how blockchain works? Blockchain is an advanced way of passing information in a safe and automated manner. In a blockchain transaction, one party creates a transaction by creating a block. The block is validated by millions of computers that are geographically distributed around the world. The validated block will be added to the chain which is created, stored, and accessed by the other parties. The whole idea behind the blockchain asserts that falsifying a single record would technically mean that falsifying the entire chain in millions of instances. However, that is virtually impossible since the systems capturing this block will be physically distributed.

Let us try to understand  how blockchain works with a simple daily life example.

You have just bought an online railway ticket using the web application or mobile application. You must have observed that the credit card or debit card company takes transaction charges for booking a railway ticket for you. In this transaction, you and the railway corporation are parties and the ticket you booked is a block. The ticket will be added to the ticket blockchain. Let us say this for a certain route or maybe for the entire train network from starting to the end journey point of the train. This comprises every train ticket, ever sold, and every journey taken.

But  the blockchain transaction is different from the above-mentioned transaction. Blockchain eliminates the need for intermediaries who facilitate the transaction.  Since the intermediary is eliminated, the transaction charge will become nil. Also, the blockchain eliminates the risk of an intermediary becoming default on his duty.

How to Learn Blockchain?

We are living in the blockchain world. The impact of blockchain on human life will be limitlessly brighter and glorious than you can imagine. If you are planning to learn web development using blockchain, then you better set your expectations right and avoid expecting immediate results. Let me be clear, blockchain is not a magic wand.  And still if you want to learn it, here are a few steps to help you take your blockchain learning journey.

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How to Learn Blockchain? – What is Blockchain Technology

Step 1: Understand the basics

Laying the foundation is more important than constructing a home. The same holds even while you learn blockchain technology. Until you lay a strong foundation, you may not be able to develop a strong web application based on blockchain. First, you need to focus on learning basics and essentials related to the blockchain which helps you understand the length and depth of the technology. This helps you understand how far you stretch your hands in the overall learning journey. Understand some of the core topics like blockchain, decentralization, miners, block, Ethereum, cryptocurrency, bitcoins, ICO, and other topics.

 

Step 2: Learn the process

As soon as you acquire the conceptual understanding of what is blockchain technology, then you are equipped to take a step ahead in learning the process of developing the blockchain. Before you design your innovative web application using blockchain technology, I suggest you get acquainted with what is already there in the market related to blockchain technology. Google to understand some of the web applications that are already designed using blockchain technology. This will give you a fair idea about how you can leverage this technology to build your web application.

 

For example, you may check Coinbase or any other related exchanges and buy a few bitcoins and see the process of how it works. Since you are not going to buy a whole lot of coins, your online wallets are easy to create and handle. Do not focus on creating a portfolio even when you start earning good money with your few bitcoins since your focus is on building the web application and not raising your bitcoins value. Stick to your needs and purpose.

Step 3: Start coding

Once you start coding the requirement, you may encounter a series of challenges in the backend process. Do not panic if you face many challenges. Thankfully, there are ways to address them. For your convenience, I will discuss a few challenges that you may face.

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Challenges in coding – What is Blockchain Technology?

 

A. Security

The code is on the public domain and everyone can see your coding. Everyone can check what you are coding and its vulnerabilities. Though every coding system has this issue, blockchain has more serious problems compared to other coding systems. There are possibilities that hackers may steal your code and make money before you complete the coding and make your website live

B. Resource management

You need to keep network requirements to run your coding activities. You must equip yourself to take care of remote queries as well as local queries.

C. Performance

The blockchain must constantly work at its uppermost possible competences. For that to occur, the language selected must be exceptionally adaptable. Challenge in this context is that certain tasks in blockchain development are parallelizable as some chores can’t be done in analogous ways.

D. Deterministic behavior

If X + Y = Z, then irrespective of circumstances, X+Y should always be equal to Z. This  is called deterministic behavior. For example, Hash functions deterministic indicate X’s will remain H(X). In blockchain development, each transaction must be deterministic, and we should not have a transaction that behaves randomly every time the input is given. In a blockchain, we cannot have smart contracts that behave differently in different machines.

 

Step 4: Learn what is a smart contract

Acquire knowledge on what is a smart contract and how it works. You also need to understand the desirable properties that are required in smart contracts. Clearly understand the three features smart contract functionality should have.

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Smart Contracts – What is Blockchain Technology

I can write a separate article if you wish to learn more about smart contracts.

Step 5: Build your website

Now you have all the infrastructure ready to build your blockchain-based web application. Start building your website and see how it works. Do not worry. Mistakes, bugs, vulnerabilities  teach better lessons and are a great way to learn and adapt. That we call it “Experiential learning”.

 

How to Buy Bitcoin on Blockchain?

The bitcoin on blockchain can be bought with three simple steps:

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How to Buy Bitcoin on Blockchain? – What is Blockchain Technology

The first step in the process of buying bitcoin on the blockchain is creating a blockchain wallet. To create your blockchain wallet, you would require your verifiable email id which serves a reference point for later stages of your transactions. In the next step, you would have to set-up an exchange account using your email account through which you accessed the bitcoin sellers. You can set up your exchange account with one of the listed exchange partners with the company. As soon as you register with the exchange partner, then you are ready to invest in blockchain.

Thanks for reading. Hope you enjoyed the article. Let us connect with another article soon. For more latest news and articles please go through Smartzworld News portal

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About Pavan kumar C

Pavankumar Chandrappa is an excellent academic writer, learning designer, research scholar, and blogger in the management domain. He has more than a decade of blended experience in academia and industry with great exposure to writing on various paradigms of business management. He has published a series of research papers on various paradigms of learning. You can access his detailed biography by typing"Pavankumar Chandrappa" on google search.

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