A Blockchain is a network of interconnected blocks. Four components make up a block:
- Merkle tree root
- Previous Hash
- The timestamp
A cryptographic hash of the contents from the preceding block is contained in each block. The miners choose the nonce by resolving a cryptographic problem to suggest the subsequent block in the chain. It is referred to as proof of labor. Because of its cryptographic characteristics, the Blockchain is believed to be immutable. However, this does not imply that it is impossible to change the data. The data cannot be changed very readily, and any modification is immediately apparent. A binary tree containing hash pointers is known as a Merkle tree. A Merkle tree is a type of structure that makes it possible to securely and effectively verify the content of vast bodies of data. Merkle trees have the benefit that demonstrating membership only needs O(log N) steps. Non-membership may also be shown in O(log N) steps in a sorted Merkle tree. The genesis block is the initial block.
Blockchain's benefits what justifies the use of Blockchains now. Due to the many advantages that Blockchain technology offers, most firms are expected to use it. Between two entities wanting to exchange something, the Blockchain does away with the necessity for a middleman. As there is no outside influence, transactions may be completed faster. As a result of lower overhead and intermediary costs, money is saved. Due to its immutable nature, it lowers the danger of manipulation, fraud, and cybercrime. Since the information is now held in distributed ledgers, there is no longer any need to rely on a third party. Other benefits that are particular to the use case it is applied to include numerous others.
Types of Blockchain
The ecosystem is capable of supporting a variety of Blockchain types.
Permissioned Blockchain is another name for a private Blockchain. Participation is limited in this case because only chosen people or members of an organization are allowed to use the Blockchain. Examples of private Blockchain include the Multichain and Hyperledger projects (Fabric, Sawtooth).
Blockchain consortiums are referred to as partially or semi-decentralized Blockchains. Instead of just one organization like in a private Blockchain, it is governed by a number of organizations. The member organizations have the right to take part via mining, acting like a complete node, etc. Examples of consortium Blockchains include R3 and the Energy Web Foundation (EWF).
A Blockchain that is open to all users is referred to as a public Blockchain. Everyone may participate in our Blockchain and be a part of it by hosting a node, mining a block, or carrying out transactions. Public Blockchains include those used by Bitcoin and Litecoin.
Blockchain Technology Case Studies
- Decentralized Autonomous Organizations (DAO) utilize smart cards. Although there is no central administration, the smart contracts include guidelines for how the business should function. Decentralized administration of the organization is necessary, necessitating permissionless Blockchains.
- Votes must be anonymous in order to prevent intimidation, making e-voting privacy one of the most important public demands for this method of voting. Public verifiability is necessary, nevertheless, in order to preserve the integrity of the votes. Using Blockchain technology is one of the most logical solutions because there are so many parties involved in voting, and they don't trust one another.