Greetings:

Hello Everyone, I hope you are doing well. this week I read the lecture which is given by @stream4u. so, after reading this article carefully I am starting to write the post. so, here let's get started:

Question # 01:

What is Blockchain and What are the types of Blockchains / Explain in detail the types of Blockchain?

Answer:

The Word blockchain is made up of two words. the first one is Block and the second word is a chain. if you noticed the word blockchain which means a chain of blocks and they are connected to each other. so, the same meaning as applied to the cryptocurrency blockchain.


In Blockchain people are connected to each other with help and each node is a unique address. Blockchain is a decentralized platform that provides equal rights to every node. the blockchain is not owned by a single person. in another word, we can say that it is public property. everyone who is connected to the node itself is an owner.


there are three types of blockchain which are discussed one by one in detail:

1. Public Blockchain:

The public blockchain is used for anyone. throughout the blockchain, there is no restriction to sharing the data. everyone has a right to share the data publicly. this type of blockchain gives the right to everyone who is connected to a network. the one important thing in this blockchain is that the transaction overall is anonymous means that people can see the amount of data transfer it can not see which person has done it.


A public blockchain is also a decentralized blockchain and if we talk about security so, the public block is not fully secured in terms of sharing of files or data. Every transaction is visualized and transparent to everyone because it is an immutable ledge system.

2. Private Blockchain:

This type of blockchain is owned by any company or organization. In this blockchain, there is only one owner who owns the network. In this blockchain, every node sends data but with the permission of the organization. if we talk about security then this blockchain is a good option because it provides better privacy of the data.


A private blockchain is the most efficient. the reason for this efficiency is that the permission. If you want to send the data from one node to another you required the authorized permission from the network owner. there is one more speciality that provides the private blockchain which is simplified data processing and handling.

3.Hybrid Blockchain:

The Hybrid blockchains make life simple. it is a combination of public and private blockchain. and I have early mentions of each blockchain and its limitation. The hybrid blockchain contains the properties of both blockchains. and the deployment is not very difficult.


In this blockchain, you have a choice of selecting these two blockchains. suppose you sent the data publicly so, can use the public blockchain and in such a case if you have crucial information or a packet of data so then you used the Private blockchain.

Question # 02:

What are the Benefits of the Blockchain?

Answer:

Blockchains provide many benefits to ease his/her transaction. and this is the beauty of the blockchain that provide many benefits for its user.

1. Transparency:

If we talk about the data the one thing that is very important is transparency. means the data we have sent to our receiver must be the same as what we send. this is the quality of blockchain technology that provides Transparency to his client. the one another thing that is if anyone node sends the incorrect data to other nodes. so, the nodes know the original data and it avoids the fake data.

2. Decentralization:

Another benefit is decentralization. blockchain is a decentralized technology. means that it can not be owned by a single organization. every user that is connected to a network has his own boss. because it is an open-source system and not any third party can govern it. but it doesn't mean that transaction is not traceable. every transaction in the blockchain is traceable by its unique hash number 256.

3. Security:

Blockchain technology provides the best security to each and every node. it is not easy to hack the blockchain system. because every node is encrypted by the long Hash number. if any hacker hacks the system so, it is easily recoverable with the help of other nodes. we can say, that the information is secured in the blockchain system.

4. Data Ownership:

It is the most important benefit among all of them. In blockchain technology, you own your data. you are a boss. your data can not be seen by any third party and government officials. so, the data ownership can facilitate you that your data in your access. not at the hand another person.

5. Immutability:

The fifth benefit is the immutability of data. means that if you want to change the data in the whole network so, the person that connects in the same network can know easily that you change something in data. all of this is due to the Hash function because all the data are save in it.

Question # 03:

Explain Blockchain Distributed ledger.

Answer:

Blockchain Ledger:

Before we start to understand the blockchain distributed ledger first we need to understand that what is the ledger. the ledger is the record of any good that keeps tracking of the amount of that good. I am given you one example you can understand better. suppose you run a small business like a pizza business in this business the calculation is very important so, need to keep track of every important item for your business. this is a ledger that helps you to find which thing is very important for you to run your business. the same concept is applied to the blockchain distributed ledger.


basically, the blockchain distributed ledger has three phases. In the first phase, the information is come and save in a single block of the blockchain. the second phase is the hash and the hash has a unique code that assigns to every block. the third phase is the new hash code that is stored in the previous node. because every node is connected peer to peer and every node has an address of the previous node.

This is the overall explanation of the Blockchain Distributed ledger.

Question # 04:

What Is Blockchain Double Spending and how Bitcoin handles this problem?

Answer:

Blockchain Double Spending:

In blockchain technology, many and most are advantages but sometimes it faces issues. so, I will discuss this issue which is a very important issue called "Double speding". double-spending in blockchain technology or network occurs if the network is weak or we can say that the network is disrupted. and due to this distribution the crypto assets are stolen and theft by scammers. All of these types of issues are faces due to multiple packets sends at the same time. I will give you the one example you will understand better.


Suppose that Hammad I want to buy something with my crypto assets. I have 1 bitcoin and I want to buy 2 gaming PCs one is for me and the other is for my brother. but I am facing an issue. The cost of one Pc is approximate 0.8 satoshis and I have only one bitcoin to buy these PCs. the total cost is 1.6 bitcoin. so, I go to another shop and buy the same Gaming Pc. now I have two PCs at a cost of 1.6 bitcoins. I have one 1 bitcoin. so, here is the double-spending idea that comes to my mind. I pay the amount for both shops at the same time. so, in their result, I overcome the situation and Now I have 2 bitcoins.

How bitcoin handles double-spending problem:

Bitcoins handles the double-spending problem very well and we can say that in a very simple manner. suppose if any cheater wants to cheat with the miner. it cheats with the help of the double-spending problem. scammers did their transactions with two different places but the bitcoins transaction handles it very simple manner. It can handle with the help of time. the first transaction is the execute first and manner removes the block of the first transaction. after execution the first transaction miner will remove the second transaction address. and In such a case both transactions are in the same so, the network maintains its block and tells the minner. so, this is the overall working of the double-spending problem.

Question # 05:

Practical + Theory, Visit Blockchain Demo and check section Blockchain, then explain in detail how Blocks Hashes Work in Blockchain, what will happen when any middle of the block gets changed, try to give screenshot for each possible details.

Answer:

In this question, I will explain each step one by one with the help of a screenshot. so, here we go:

The first thing is you need to open your browser like google. and after opening it you will go to this site BlockChain demo after opening it you will see this type of interface:

In this screenshot, you will see that the five boxes. which are :
i. Blocks.
ii. Nouce.
iii. Data.
iv. Previous.
v. Hash.


In these five blocks, the last two blocks I discussed here are pre and Hash. As we all know that the Hash is the unique of every block in the blockchain. If you noticed the first Block so, you will see the the address of previous which is 0 this is the sign that this is the first block. this first block of the blockchain is called "Genesis Block". and if you see the second block you will see the Hash which is the first hash but it is in the prev of the second block.

Hash first Block:

previous hash:

000000000000000000000000000000000000000000000000000

Hash:

000015783b764259d382017d91a36d206d0600e2cbb3567748f46a33fe9297cf

Hash second Block:

previous hash:

000015783b764259d382017d91a36d206d0600e2cbb3567748f46a33fe9297cf

Hash:

000012fa9b916eb9078f8d98a7864e697ae83ed54f5146bd84452cdafd043c19

You can clearly see that the Hash of the first block is the pre of the second block and the hash of the second block is the previous of the third block. that's why it is called a blockchain.

Put data in the blocks:

You guys clearly see that I entered my Steemit profile name in the first block. and in the second block, I write the Steemit. so, in the result, the hash value is also changes seen in the Screenshot.

Type Incorrect Nonce Value:

At the end of this question, I will try to change the nonce value so, I change the nonce value and I noticed that changing of nonce value will also affect the Hash and hash of every block is also changes. this means that If you change even one dot it will affect the whole process. and this is the beauty of the blockchain.

Click Mine Button:

Mine button is very important because it is correct your nonce number. as previously I change the incorrect nonce and after it, I will enter the Mine button so, it will correct it.

Question # 06:

What Is Race Attack in blockchain? OR What Is Finney Attack in blockchain? OR What Is Vector76 Attack in blockchain?

Answer:

Before, we discussed the attacks in blockchain and their types. first, I will explain the concept of double-spending. double-spending is the multiple transactions at the same time. and due to these multiple transactions, the attackers attack the data and hack it. there are three types of attacks in double spending:

1. Race Attack.
2. Finney Attack.
3. Vector 76 Attack.

Race Attack:

It happens when a person or scammer or attacker or a buyer. performs any transaction. but in a race attack, the scammer will be performing the same transaction within the network to another seller the seller must be two or more. both transactions will be at the same time. and the result is the transactions conflict and one seller wouldn't receive the payment while the other seller received the whole transaction.


let's take an example any person performs the transaction in ethereum network. the sender sends the data to both sellers. one seller received the 0% data and another seller received his own data and the selller1 data. what happens in this network? the answer to the question is the networking conflict and seller2 takes the advantage of this. this is happening in the whole broadcast network. and scammer takes the advantage.

Question # 07:

Limitations/disadvantages of Blockchain.

Answer:

Limitations/disadvantages of Blockchain:

despite many advantages, there are also disadvantages of blockchain technology here I will discuss one by one:

1. Electricity Consumption:

As we all know that the blockchain is a wide area chain. so, it consumes a lot of electricity, and in today's world, most of the electricity is produced with the help of coal.

2. Cost-Effective:

Blockchain technology is a cost-effective technology. because many of the servers have a high cost of repairence.

3.Regulatory:

As we all know that the blockchain is a new technology and most of the country didn't regulate it.

4.Transaction:

The transaction is another big issue for example a person who sends 10,000 dollars through the blockchain. blockchain saves his amount of money but it doesn't save his name, id, and source of payment.

5.Losing Keys:

If you lose your private key so, the blockchain didn't recover it.

Question # 08:

Conclusion(Overall understanding of Blockchain.).

Answer:

Conclusion:

At the beginning of this post, I will give the Introduction of blockchain that it is a decentralized system and every node is connected peer to peer. after it, I will discuss the types of blockchain and described three types public, private, and hybrid blockchain. In this post, I have clearly mentioned the risk and how bitcoins deal with it. I also mention the limitation and disadvantages. of blockchain technology. and at the end, I will give the demo of Blockchain using multiple screenshots.


Hash is the building block of the blockchain system. because as we know that in the blockchain every node has a unique address. and this node is interconnected to each other. due to these uniques, this is consumed most of the computational power and also electricity. due to the high consumption of electricity, it will generate a lot amount of heat which is very harmful to nature.

After reading this post I think you will understand how it works. because it is a decentralized system and fear-free system. this system does not govern any third party like government officials.
at the end, I will thank you to all my reader that reads my post till the end.

so, that's all my friends:

Special Mentions:

@stream4u

#cryptoacademy #stream4u-s3week6 #blockchain #steem #steemit #steemexclusive #pakistan