Steemit Crypto Academy Contest / S8W1 - The Importance Of Blockchain Technology

Hi @julstamban here from Philippines! Is blockchain something you've heard of? If you havent heard of them before don't feel bad youre in good company. On the other hand if youve been paying attention to the cuttingedge of technology youve probably notice that this term has been prolly popping very frequently. The blockchain has been heralded as a game-changing technological development. Business as we know it, monetary transfers, data storage, and security could all be revolutionized by this technology. well, I don't understand. I mean, what's the big deal?

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In this post we prolly analyze blockchain technology and discuss its salient characteristics, as well as its advantages and disadvantages. We also discuss some of the most pressing issues in this current sitation of blockchain technology as well as potential solutions/answers. So strap in and prepare to enter the cutting edge of blockchain innovation!

🌀1. Main Issues Arising in the Existing System of Blockchain Technology

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Blockchain technology is alsoknown as a revolutionary advancement in many but it does have some issues that need to be addressed. Scalability is a major issue because the current blockchain system can only process a certain number of transactions/second right?. The delay in processing transactions and the accompanying increase in transaction costs can be attributed to this issue. This limits its usefulness in contexts where rapid transactions are required.

To add insult to this.. blockchain platforms don't all employ the same protocols, which makes it difficult for enterprises to adopt the technology. Concerns about security stem from the fact that cybercriminals may use weaknesses in smart contracts to their advantage, leading to substantial financial loss.

🌀2. Key Features of Blockchain Technology

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Being decentralized is a key feature of blockchain technology. This means that there is no central authority overseeing or checkin the network and that all transactions are subject to verification by a wide range of nodes. This safeguard ensures that no single user or organization may take complete command of the system. This makes it challenging to regulate or alter.

Another characteristic is that it cannot be changed. Theres no way to alter/change or remove a transaction after it has been recorded in the blockchain. This guarantees the immutability and security of all blockchain data. Additionally, because blockchain technology is transparent, all participants can view all transactions. This increases responsibility and fosters confidence amongst participants.

Blockchain technology also includes smart contracts, which are becoming increasingly significant. Smart contracts can be generated and carried out mechanically based on predetermined conditions. This function ensures that the contractual obligations are met without any further action being required. Having fewer middlemen is efficient and saves time.

🌀3. How the technology of blockchain works

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Without the need for a trusted third party.. transactions can be recorded or might be verified on a blockchain which is a public distributed and unchangeable(or cannot be changed) database. Groups of transactions, or blocks, are connected together to form a chain. A block cant be altered or removed from the chain once it has been added to the chain.

The network relies on sophisticated algorithms to solve mathematical riddles and confirm transactions at several nodes. After a node has deduced the solution, it will be rewarded in cryptocurrency. This process is prolly known as mining that verifies the authenticity(genuity) and integrity of each transaction.

🌀4. Authentication with Zero Knowledge Proof

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The cryptographic method prolyl is zeroknowledge proof (ZKP) allows one party to convince another that they possess certain knowledge without actually disclosing any of that knowledge. In order to prove their identity users can do so with ZKP without disclosing any private info.

To gain access to a restricted area of a network for example a user can use ZKP to verify their identity without revealing their true identity. The system wouldnt recognize or know the user only that they have permission to access it.

🌀5. Advantages and Disadvantages of Blockchain Technology

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Advantages:❤

• Transactions are secure and unchangeable thanks to decentralization.
• Accountability and trust in one another increase when information is shared openly. Smart contracts streamline business transactions by cutting out unneeded middlemen.
• Data that is immutable is guaranteed to be secure and immune to deletion or alteration.
• In terms of efficiency, transaction costs have decreased while simultaneously increasing in speed.

Disadvantages:💔

• Limitations in transaction throughput per second due to scalability problems are a major drawback.

• Security issues come from the possibility of errors in smart contracts;

• Lack of standards makes it difficult for enterprises to implement blockchain technology.

• Energy consumption and environmental damage are two of mining's negative impacts.

With its promise of secure transparent, and quick transactions blockchain technology has the potential to disrupt numerous markets. However it has some flaws that need be addressed or cheked, including the fact that it is difficult to scale, that it is not standardized, and that it has security issues. Blockchain technology has the potential to improve and disrupt numerous sectors if these issues are resolved.

And with that I would like to invite my fellow Steemians @loloy2020 , @juichi and @misssj