Blockchain and things to know about it

1. What Blockchain is:

Blockchain is a combination of three leading technologies: Cryptography, Peer-to-peer networks, and Game theory. Blockchain is a database managed on a peer-to-peer network of computers, which can be termed nodes. It allows the transmission of data securely based on an extremely complex data encryption system, similar to a distributed ledger. The entire blockchain and its history has been accessed by each member in the network. The accounts of all the members will be updated information each time a transaction is recorded. Each transaction is linked to the one that came before it, and all transactions are grouped together into blocks. Once the data is accepted by the network, there is no way to change it. Therefore, you could say that Blockchain is designed to repel deception and adjustment of data.

2. Blockchain’s history:

2.1. Who invented the Blockchain?

In 1991, Stuart Haber and W Scott Stornetta introduced a cryptographically secured chain of blocks for the first time.

In 1998, Computer scientist Nick Szabo proposed ‘bit gold’, one of the earliest attempts at creating a decentralized virtual currency,

In 2000, Stefan Konst’s theory of cryptographically secured chains was published, along with ideas for execution.

In 2008, Developer(s) released a white paper on establishing the model for a blockchain that was posted on a cryptographic mailing list by a person or organization using the pseudonym Satoshi Nakamoto.

In 2009, the first blockchain was implemented by Nakamoto as the public ledger for bitcoin transactions.

In 2014, Blockchain technology was separated from the currency because of its potential development and application. Blockchain 2.0 was born. The Ethereum blockchain system brings computer programs into the blocks.

2.2. Bitcoin — The first crypto:

After posting their whitepaper in 2008, Nakamoto launched bitcoin as a form of cash that could be allowed to be self-executive without the need for a third party like a central bank, authority, and so on.

Bitcoin solved many problems in the field even though it wasn’t the first type of online currency at that time, and it may be the most successful version today.

3. Types of Blockchain:

- Public Blockchains: Public Blockchains are permissionless. Anyone has the right to read and record data on the Blockchain. The process of authenticating transactions on this Blockchain requires a lot of node combinations. Therefore, to attack this Blockchain system requires a huge cost and this is really not feasible. Examples: Bitcoin, Ethereum, …

- Private Blockchains: Users are only allowed to read data, not record because this belongs to an absolutely trusted third party. Because this is a Private Blockchain, the transaction authentication time is quite fast because only a minute number of devices are required to prove the transaction. For example, Ripple is a form of Private Blockchain, this system allows 20% of nodes to be fraudulent and needs only the remaining 80% to work stably.

- Permissioned Blockchains (also known as Consortium): These are a form of Private Blockchain but added some other features, this is a combination of Public and Private Blockchains. Example: Banks or joint venture financial institutions will use their own Blockchain.

- Hybrid blockchains: are blockchains that are under a level of supervision performed by the public blockchain, which is required to perform assured transaction endorsement. Examples: IBM Food Trust.

4. The future of Blockchain:

The potential of blockchain technology is nearly boundless, and recent innovation has brought us closer to a decentralized, trustless internet, transparent transactions, and many other benefits

Here are some examples of how blockchain will change the future:

- A revolutionary new way in blockchain technology is NFTs (non-fungible tokens). We can buy and sell digital assets like in the real world, but all NFTs are unique and can’t be replaced or swapped. The possibilities of NFTs are unbounded and in the next few years, you will be able to buy everything by using NFTs.

- Because Blockchain technology is extremely secure and truthful, transactions will be processed more quickly and easily, especially opportunities to trade execution 24/7.

- Your digital identity is based on the exclusive random set of numbers assigned to each user on a blockchain network, rather than proving who you are by some personal and arbitrary piece of information that could be guessed or stolen. Blockchain has the potential of substituting this system for a safe, secure, and easy-to-handle digital identification.

- Health issues will be easier to treat. Healthcare providers might also use blockchain technology to securely transmit information. This would cut down on redundancies and improve diagnosis speed while also ensuring patient privacy. However, Blockchain may be used to track the supply chain, improve medicine safety and combat counterfeit drugs, reduce health insurance rates, and so on.

- There is little doubt that the usage of cryptocurrencies will grow significantly in the next few years. As more businesses, both large and small, begin to accept cryptocurrency payments, blockchain technology will become more widely used.

- It could be faster, easier, and more secure than how we vote today by voting with blockchain technology.

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