Key Blockchain Technology Concepts You Need To Know

6 months ago

Blockchain Technology: Blockchain Technology is a structure which store Transaction records, commonly known as the block of the public in several databases, commonly known as "chain" which means, a network connected through peer-to-peer nodes. This storage of record is referred to as 'Digital Ledger'. In other words, digital ledger is like an Excel Spreadsheet which is shared among number of computer systems in a network in which Transaction records are stored.


Key Features Of Blockchain Technology:

Blockchain Technology is an emerging technology with many features such as:

  1. Highly Secure: Blockchain Technology provides digital signature feature to conduct a fraud free transaction that makes it impossible to corrupt the data of an individual's record by other users without a specific digital signature.
  2. Decentralized System: Blockchain Transactions are always done with mutual consensus of users that results in safer, smoother and faster transactions.
  3. Automation Capability: Blockchain Technology is always programmable and can always generate systematic actions, events and payments automatically when the criteria of triggers are met.
  4. Hashing is irreversible: Hashing is always complex and its always impossible to reverse it. Also, accessing and hacking millions of computers are next to impossible. Thus, Blockchain Technology is best as there is no tension for all digital assets.
  5. Faster Settlement: This is an important feature of Blockchain Technology. It offers faster settlement as compared to traditional banking systems. Also, Block chains are too fast and smart contract system allows faster settlement for whichever contract.
  6. Consensus: Every Blockchain thrives because of consensus algorithms. The Architecture of Blockchain Technology is very smartly designed and consensus algorithms are at the core of this architecture. Every Blockchain has a consensus that helps the network in making decisions.

All these features are making Blockchain Technology a whole another level of Impact on the web.


Blockchain Development:

Blockchain Technology has resulted in development of numerous of new job positions and new startups like mobile payment solutions and health care applications. For Blockchain Development, a deep knowledge is needed in Cryptocurrency, Data Science and Sever-less Computing. Blockchain development aims at helping with:

  • Blockchain case studies
  • Blockchain infrastructure
  • Blockchain and mobile banking
  • Blockchain and peer-to-peer transfers
  • Blockchain and digital currencies
  • Blockchain and Internet of Things
  • Blockchain and markets
  • Blockchain and marketplaces
  • Blockchain and healthcare
  • Blockchain and e-government
  • Blockchain applications


Essential Blockchain Technology Concepts:

Prerequisite knowledge required for Blockchain Development:

  1. Programming languages: C/C++, Java, JavaScript, Python, Solidity
  2. Data Structures: Linked list, Hyper Ledger, Acrylic graph, Hash table, Associative Array
  3. Security and Encryption: Secure Hashing Algorithm, Private key and Public key pair
  4. Networking Concepts: Multi Threading and Socket Programming


Blockchain Consensus Algorithms:

  1. Proof of Work: Used to validate the Transactions and add relevant blocks to a chain of network
  2. Proof of Stake: Designed to overcome the drawbacks of Proof of Work algorithm and used to get validation before another block is added to ledger
  3. Proof of Elapsed Time (PoET): One of the best consensus algorithm designed for Blockchain network where permission is required to access the network
  4. Practical Byzantine Fault Tolerance (PBFT): PBFT focuses on the state of machine and it replicates the system but avoids the main Byzantine general problem


Blockchain Development Tools:

Geth: A command line interface which is used to run a full Ethereum node in Go. It performs following tasks:

  • Mine Ether tokens
  • Create smart contracts and send transactions on the Ethereum Virtual Machine
  • Transfer funds between addresses
  • Track the block history

Mist: Ether tokens are stored and smart contracts can be executed and is connected to Geth in the background and acts as an interface

Remix: Remix is a suite of tools designed to communicate the Ethereum platform and is comprised of the following tools:

  • remix analyzer
  • remix-lib
  • remix-debug
  • remix-tests
  • remixd
  • remix-solidity

Solc(Solidity Compiler): Solidity Compilers are of two types:

  • solc: coded in C++
  • solc-js: uses Emscripten to cross compile from solc C++ to JavaScript

Blochchain Testnet: User has to pay for gas usage and launch of application while writing program for Ethereum Virtual Machine (EVM). The information stored on Ethereum Blockchain is immutable and cannot be undone.


Blockchain Platforms:

  • Ethereum
  • Hyper Ledger Saw-tooth
  • Hyper Ledger Fabric
  • EOS
  • Hadera Hash-graph


Thanks For Reading!

Frequently Asked Questions

With decentralized and highly secure feature, Blockchain Technology can lead to new job opportunities and business startups

Satoshi Nakamoto

Due to its enhanced security and decentralized nature, it is almost impossible to hack a Blockchain

IBM

Blockchain Technology is used to store transaction records on a network of computer systems making a chain