Introduction to Blockchain :
Blockchain is one of the most exciting and emerging technologies in the current world. “Bitcoin” which is a cryptocurrency is the buzzword which made the world take notice of the Blockchain technology. Blockchain has been redefining the way of storage, updating, and moving data across networks. Blockchain technology is highly secure and trustworthy. The core aspect of the technology is that it allows a decentralized and non-hierarchical decision making.
Today, the Internet takes a huge part in the way we connect to people in the network, make transactions seamlessly. It has changed the way of money handling and the major bottleneck we face in today’s transactions are
- Imposing high transaction fees
- Problem of Double Spending
- Fraudulent and Hacking Issues
Learn Blockchain in 10 hrs from experts
Previously, we had to trust the financial institutes and other third parties with our money, not knowing if they are as safe and secured as they claim, but after emergence of Blockchain all these issues can be resolved in a safe, secure and effective manner.
Blockchain is revolutionizing the way of managing data and databases. The traditional database has individual authority that governs it, it is not a decentralized entity like Blockchain.
For example, a bank or any institute which has created a database is owned by them only, they have all access to the database, they can manage and make decisions of storage, deletion, archiving and updating. This can result in two flaws-
- Single point failure in case of any issue with transactions.
- Power to only one single central authority.
- An agreement between two people occurring over the Internet still requires at least one central authority to approve information. For instance, with a mortgage, banks must approve reserve funds and loans. They can impose charges in case a transaction happens from A to B. Duplication or falsification of transaction can cause double spending problem.
Every central authority imposes a charge of overhead in a mortgage exchange. The transactions in the differed databases takes time, costs money or transaction charges, vulnerable to hacking or can be error prone due to any human intervention. We were subjected to all such difficulties and hassles. The Learn Blockchain solves all these difficulties and challenges.
Let’s see what is a Blockchain, how it works and advancements in Blockchain technology in detail.
In this free Blockchain Tutorial you will learn the introduction to Blockchain, what is Cryptocurrency, what is Bitcoin and mining, what is Ethereum and Smart Contracts, what is MultiChain and few applications of Blockchain.
Introduction to Blockchain
Blockchain is the most Disruptive, Digitized and Decentralized technology. The Blockchain technology is majorly used to verify digital currencies transactions. In this system there is no single centralized authority but everyone existing in the block can verify its authenticity.
Types of Blockchain
Public : Public transaction within existing blocks. Examples – Bitcoin, Ethereum, Dash, Factom
Consortium : Controlled by a consortium of members. Examples- Ripple ,R3 & Hyperledger1.0
Private : Requires an invitation. Examples- Multichain, Blockstack
When Satoshi Nakamoto tried to develop a Peer-to-Peer electronic cash system, it gave the birth of a Cryptocurrency known as Bitcoin. Since then in 2008, Bitcoin is the former most popular Cryptocurrency. It is like digital cash which works as a medium of exchange within a block. The term Blockchain is derived since the blocks are been connected one by one like a chain. The Cryptocurrency uses cryptography to secure and verify transactions.
The major types of digital currencies are –
IOTA Bitcoin – Bitcoin is the world’s first cryptocurrency, it is a first decentralized digital currency. A system that works without a central bank or single administrator for transaction in Blockchain.
Ether – Ether is the cryptocurrency of Ethereum. Ehereum is a generic open Blockchain platform. The idea proposed was the development of a Turing-complete language unlike bitcoin which is turing incomplete.
Ripple – Ripple was found by the company Ripple which is a remittance network and currency exchange through RippleNet.
Litecoin – Litecoin was forked from Bitcoin which enables instant payment to anyone in the Block.
IOTA – IOTA developed by IOTA foundation is a open source Distributed Ledger Technology to power Internet of Things.
How to Mine Bitcoins?
Bitcoin mining is process of adding transaction records to bitcoin’s public ledger of past transactions or Blockchain. This ledger of past transactions is called the block chains, it is chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Types of Mining
Solo Mining :
Miners endeavours to produce new blocks all alone, with the returns from the reward and transaction expenses going altogether to himself. Higher payouts are the benefit of solo mining.
Pooled Mining : Miner pools assets with different mine workers to discover blocks all the more regularly, with the returns being shared among the pool miners in rough correlation to the measure of hashing power they each contributed. You get constantly paid in pooled mining.
Bitcoin consensus algorithm allows for the creation of new Bitcoins by the process of Mining.
It involves four steps, lets see the overview of the steps –
Autonomous check of every transaction: Autonomous check of every transaction, by each full node, in light of an extensive rundown of criteria
Proof of Algorithm work: Independent aggregation of those transactions into new blocks by mining nodes combined with exhibited calculation through a proof-of-work algorithm
Confirmation: Independent confirmation of the new blocks by each node and get together into a chain.
Independent aggregation: Independent selection, by every node, of the chain with the most cumulative computation demonstrated through proof of work
Ethereum was conceptualized by Vitalik Buterin in November 2013. Ethereum is a distributed open Blockchain network. The key idea proposed was the development of a Turing-complete language that allows the development of smart contracts for Blockchain and decentralized applications. Etherum enables innovation in 4 areas-
- Currency Issuance
- Smart Contracts
- Decentralized autonomous organizations (DAO)
- Smart Property