Introduction To Blockchain Concepts
Blockchain, sometimes referred to as Distributed Ledger Technology (DLT), makes the history of any digital asset unalterable and transparent through the use of decentralization and cryptographic hashing. A blockchain is a database that stores encrypted blocks of data then chains them together to form a chronological single-source- of-truth for the data where the digital assets are distributed instead of copied or transferred, creating an immutable record of an asset.
BLOCKCHAIN CONSISTS OF THREE IMPORTANT CONCEPTS: BLOCKS, NODES and MINERS.
THE BLOCKS
• Every chain consists of multiple blocks and each block has three basic elements: • 1 The data in the block. • 2 A 32-bit whole number called a nonce. The nonce is randomly generated when a block is created, which then generates a block header hash. • The hash is a 256-bit number wedded to the nonce. It must start with a huge number of zeroes (i.e., be extremely small).
MINERS
• Miners use special software to solve the incredibly complex math problem of finding a nonce that generates an accepted hash. Because the nonce is only 32 bits and the hash is 256, there are roughly four billion possible nonce-hash combinations that must be mined before the right one is found. When that happens miners are said to have found the " golden nonce" and their block is added to the chain. • When a block is successfully mined, the change is accepted by all of the nodes on the network and the miner is rewarded financially.
NODES
• One of the most important concepts in blockchain technology is decentralization. No one computer or organization can own the chain. Instead, it is a distributed ledger via the nodes connected to the chain. Nodes can be any kind of electronic device that maintains copies of the blockchain and keeps the network functioning. • Combining public information with a system of checks-and-balances helps the blockchain maintain integrity and creates trust among users. Essentially, blockchains can be thought of as the scalability of trust via technology.
• Ukraine was the first nation to use blockchain to facilitate a property deal. The deal was done with the help of smart contracts on the Ethereum blockchain and is the first of several to be accomplished by Propy; a startup specializing in blockchain-based real estate deals.
TYPES OF BLOCKCHAIN
• We have basically Three (3) types of Blockchain; • Public or Permission-less Blockchain • 2 Private or Permissioned Blockchain • 3 Federated or Consortium Blockchain
PUBLIC BLOCKCHAIN
• A public or permission-less blockchain network is one where anyone can participate without restrictions. Most types of cryptocurrency runs on the public blockchain that's governed by rules or consensus algorithm
PRIVATE BLOCKCHAIN
• A private blockchain allows organization to set controls on who can access blockchain data. Only users who are granted permission can access specific sets of data
FEDERATED BLOCKCHAIN
• A blockchain network where the consensus process (mining process) is closely controlled by a preselected set of nodes or by a preselected number of stakeholders
