Mini Crypto Program Part 3 || "Understanding of Blockchain", by @padmore

Hello fellow steemians, I am very happy for the opportunity to participate this mini crypto program. Through this mini crypto, I have been able to get some knowledge about blockchain, it’s uses, advantages and also it’s disadvantages.

I set 10% of this post payout to @steem.education

QUESTIONS/TASKS

What do you know about blockchain?
Describe one type of blockchain!
Explain the advantages and disadvantages of the type of blockchain you choose!
Visit Blockchain Demo, and what did you learn from that page? (screenshot required)
Explain the advantages and disadvantages of using blockchain technology!
Conclusion!

What do you know about blockchain?

Blockchain refers to series of blocks that are joined together with the aid of techniques called cryptography. Blockchain is a decentralized peer-to-peer unchangeable data storage, which permits distribution over a connection of individuals normally known as nodes.

Blockchain we first brought by a group of people called Satoshi Nakamoto in the year 2008. They made improvements on it in a very vital way using hashcash ideology without the need to be signed by a trustee. The word blockchain was formerly separated by Satoshi Nakamoto in their original as “block” and “chain”. These two words were kept together as a single word (blockchain) in 2016.
The blockchain is made up of some important features, below are some

• Node: this also means networking or connectivity. A node is an electronic device which is linked to a network, and has the ability of creating, transmitting, or receiving information. A node in telecommunications, can either be a communication end point or a redistribution point.

• Blocks: as the name depicts, they are the units that come together to form a blockchain. They are referred to as records, because they are capable of storing unchangeable data that are related to the network.

• Database: this is also known as distributed ledger, and simply refers to the content that is accessible to the individual of a specific blockchain. It involves all rules and regulations that are expected to be followed in the blockchain ecosystem.

• Consensus algorithm: this is known to give permanent security to the data in the blockchain. It shows the information of the network and how the nodes in that particular network agree with each other on the type of transaction required.

There are four main types of blockchains in the ecosystem. These include

• Public (Permissionless) blockchain
• Private (Permissioned) blockchain
• Hybrid blockchain
• Consortium blockchain

following the rules of the contest, I am going to throw more light on one of the types, even though their names self-explanatory. Here, I am going to talk more about the public blockchain.

Describe one type of blockchain!

Public blockchain is the type of blockchain that uses cryptocurrencies such as Bitcoin and Etherium. It is responsible decentralization of problems, such as security problems and also the problem of transparency. It helps to share information in the form of peer-to-peer network. The decentralization aspect of this blockchain needs some techniques for checking quality of data. In this type of blockchain, the method used to check the authenticity of data is known as consensus algorithm, in which participatory individuals work in accordance with the present state of the ledger. Two common examples of consensus algorithm are the proof of work (PoW) and proof of stake (PoS).
This type of blockchain is opened to all, permissionless (non-restrictive). A typical example of such blockchain is steemit, anyone with a good internet connection can join the platform.

USES OF PUBLIC BLOCKCHAIN

• it can be used for mining and a platform for exchange of cryptocurrencies
• it can also be used to generate fixed records
• it also helps to share information across peer-to-peer networks very easily

Explain the advantages and disadvantages of the type of blockchain you choose!

ADVANTAGES OF PUBLIC BLOCKCHAIN

• it is able to decentralize security problems and brings about transparency: The public type of blockchain is not controlled by anybody, it gives its participants total control over their accounts making it secure enough and hard for hackers to get access to it and to cause alteration of information.
• it is an independent network: it is a platform that is not controlled by any organization, not even those who created it, it will continue to run even if the organizing body fails to operate. This independence gives the individual freedom of ownership of account.
• it is opened to all individuals who wish to partake: this type of blockchain is also called non-restrictive blockchain. It is not meant to be accessed by a particular group of people, but opened to all who wish to join the ecosystem.

DISADVANTAGES OF PUBLIC BLOCKCHAIN

• it is slow in operation: because of the free nature of this blockchain, lots of people join it and in the cause of operation, the network becomes slow making retardation of progress
• increase in the number of nodes: an increase in the number of nodes makes the network very slow
• hackers will be able to take absolute control over the network ones they have gained more than 50% of the computing power. This make them to make alterations to the blockchain.

Visit Blockchaindemo.com, and what did you learn from that page?

I realized that the blockchain demo comprises of about six features, below are the features

• Hash: this is the main component of the blockchain network. It takes inputs and converts it to fixed output of a specific length.

• Distributed blockchain: This refers to the cross peer-to-peer sharing of network. It consists of several participants sharing the same network, where each peer consists of a block, nonce, data entry, preview, and hash

• Another feature is the block which refers to the singe unit of the blockchain. More than one of these blocks is known as a blockchain.

• Tokens are another features on the blockchain demo. These tokens are of three main types, utility, commodity, and security. They are specially mounted on a specific blockchain.

• Another important feature is coinbase transaction, which is the first transaction on the blockchain. It is a special type that is generated by the miner and shared across peers.

Explain the advantages and disadvantages of using blockchain technology!

ADVANTAGES OF BLOCKCHAIN TECHNOLOGY

• Security: it ensures that ones an individual is joining the blockchain, he or she is given a special identity. This helps them to have absolute control over the account and ensures transactions are carried out independently. The make up of the blockchain makes it harder for hackers to get access to the blockchain status.
• The fast nature of the blockchain is an advantage. Transactions and other operations, such as the banking side used to take long time before everything is completed, but blockchain takes only minutes or seconds to to complete a transaction.
• The blockchain is designed in a way that it is able to identify and correct problems automatically, as a result of its decentralized nature.

DISADVANTAGES OF BLOCKCHAIN TECHNOLOGY

• The blockchain currencies are not allowed in some countries, this act of restricting the use of cryptocurrencies, deprived the individuals of taking part in the blockchain-related activities.
• Time consuming: the blockchain requires lots of time from participants, so that they don’t lack any update on the network.
• Some users face the challenge of loosing their funds as a result of wrong transactions. Transactions made on the blockchain are not reversible.

CONCLUSION

From the above information about the blockchain, the advantages out weigh the disadvantages, hence I encourage all, instead of wasting internet bundles on non-profitable things, to try hands on it especially steemit.com

Thank you all and I invite @n-chris and @tardigrade180 to participate in this