Introduction to Blockchain Technology

1. Introduction to Blockchain Technology Imagine a world without computer databases. There would be no e-commerce, no ATMs, no Internet banking, no Facebook, no Gmail, no WhatsApp! Almost everything that makes the web so powerful and useful depends upon computer databases. The digital world relies very heavily on computer databases, even if most users are unaware of it. Now imagine a database that's probably immutable/unchangeable and almost impossible to hack. That’s a blockchain is an ordered and time-stamped sequence of “blocks of information”. 1. Blockchain technology was devised by the unknown inventor of the bitcoin crypto-currency in 2008. Simply put, the bitcoin crypto-currency runs on the bitcoin blockchain — a public blockchain where anyone can become a miner and details of each single bitcoin transaction are stored on each node. 2. Blockchain is an innovative mixture of decades-old, tried and tested technologies including Public key cryptography (1970s), Proof-of-Work (1990s) and Cryptographic hash functions (1970s). 3. Over a previous couple of years, many derivative projects (e.g. ethereum, multichain) and blockchain-inspired distributed ledger systems (e.g. BigchainDB, Corda, Hyperledger Burrow / Fabric / Sawtooth, Quorum) are created. 4. Blockchains are provably immutable and enable the rapid transfer and exchange of crypto-tokens without the requirement for separate settlement, clearing & reconciliation. 5. Blockchain solutions may be permissioned (e.g. a Government-run land registry) or permission-less (e.g. Bitcoin, where anyone can become a miner). Blockchain solutions may be private (e.g. a contract management system implemented in an exceedingly pharmaceutical company), public (e.g. an asset-backed cryptocurrency) or hybrid (e.g. a bunch of banks running a shared KYC platform). 6. Blockchains can handle data authentication & verification all right. This includes immutable storage (data stored on a blockchain can't be changed or deleted), digital signatures and encryption. Data in almost any format is often stored within the blockchain. 7. Blockchains can create public-private key pairs and even be used for generating and verifying digital signatures.

2. 8. Blockchains can handle smart asset management all right. This includes issuance, payment, exchange, escrow, and retirement of smart assets. A smart/crypto asset is that the tokenized version of a real-world asset e.g. gold, silver, oil and land. 9. Blockchains don't have one point of control or a single point of failure. 10. For organizations, blockchain technology can minimize fraud; accelerate information and money flow; greatly improve audibility and streamline processes. 11. The original blockchain used proof of work as a consensus mechanism. But today multiple distributed ledger systems provide several consensus mechanisms such as Proof of stake, Deposit based consensus, Byzantine fault-tolerant, Proof of time, Federated Byzantine Agreement, Derived PBFT, Simplified Byzantine Fault Tolerance, Redundant Byzantine Fault Tolerance, Federated consensus, Round-Robin and Delegated Proof of Stake. 12. One method of providing privacy on a blockchain is the separation of concerns, during which data is distributed only to the relevant parties of a transaction. Optionally, the hash of the info is broadcast to all or any of the nodes. This method is employed in Corda, Quorum, and Hyperledger Fabric. 13. Another method of providing privacy on a blockchain involves the broadcasting of encrypted data across the entire network. All of the above factors can be executed appropriately with the help of the best ​cryptocurrency software development company​ in India and USA.