Mini Crypto Program Part 3 || "Understanding of Blockchain", by @thirdeye7771

Greetings fellow steemians. Before I begin I will like to extend my warm greetings to @liasteem fellow the wonderful opportunity given. My todays post will be about blockchain.

What do you know about blockchain?

Source

BLOCKCHAIN
To my understanding blockchain is a digital ledger that stores data which can also be duplicated and distributed across all the entire computer networks of blockchain. This means that the blockchain activities are very transparent and very difficult for fraudulent activities since it records every transaction that have been made. The blockchain records the time, place and even the type of transactions that has happened in the blockchain. Because the blockchain is a digital system that records and stores every blockchain activity, it can be accessed by anyone in the as long as you have a computer or a laptop. Blocks in the chain contains a number of transactions, every participant has a ledger and anytime there is a new transaction by the participant a record of the transaction is added to the participants ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT). The blockchain is recorded by a cryptographic signature called Hash. The hash is an algorithm that converts transactions into unique numbers or letters that can be stored. Two hashes will also be combined till there is just one hash remaining. Blocks are where all the information or data about transactions is stored, blocks connect together in a chain like form to form the blockchain. Each of this blocks contains the hash of the previous blocks and the hash will only change depending on the information that is carried on in the new block.

Describe one type of blockchain!

There are four types of blockchain and these are as follows

• Public Blockchains
• Private (or Managed) Blockchains
• Hybrid blockchains
• Consortium Blockchains

Public Blockchains
Public blockchain as the name suggest are permissionless in joining, you don't need to ask for the consent of anyone when joining, this means that anyone can join. Public blockchains allow all nodes of the blockchain to have equal rights to access the blockchain, create new blocks of data, and validate blocks of data. Node is the decentralised ledger that is used to maintain a cryptocurrency and as already mention the ledger contains transactions of participants. The node is also a network device that checks on the various blocks to verify them and also stores all transactions of a block. Some public blockchains may include Bitcoin, Litecoin, Etherium and many others. Miners use this platform to mine crypto currencies by creating blocks and solving cryptographic equations.

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

Advantages of the Public Blockchain
The public blockchain provides as with several merits.

• It offers a decentralized system which means that the information is not hidden and anyone at all can access it at anywhere anytime.
• The miners ant participants in this type of blockchain remain anonymous, this allows the participants in this blockchain to transact freely.
• In this blockchain, there is no need for a third party in making transactions, this makes transactions very quick and easy since it is just between two parties. they communicate directly with each other.
• Information sent on this platform is safe because it is encrypted cryptographically.

Disadvantages of the Public Blockchain
Similarly the public blockchain has its own flaws.

• Anonymity as already discussed as an advantage can also be is flaws again. Since this blockchain hides the identity of is users, it will be very difficult to trace fraudulent activities or users on the platform.
• In this blockchain since your identity is hidden one does not need to prove him self but rather through your handwork. This makes it difficult because before you get that recognition, you need to commit your processing power to become a part of the network.
• It also processes at a very lower speed rate. Public blockchains like bitcoin process only 4.6 transactions per second whereas companies like Visa process 1700 transactions per second.
• Some times users need to solve complex mathematical puzzle to validate transactions which consumes a lot of resources and also costly.

Visit Blockchain Demo, and what did you learn from that page? (screenshot required)

BLOCKCHAIN DEMO

Blockchain Demo

From the blockchain demo there are several options that you can navigate through but after visiting the site, from the above picture you can see the various blocks and the hash IDs. From the welcome menu you can see the Hash option and the Block option at the right top of the screen . When you click on the Hash option it sends you to a new display.

Above is what you will see when you click on the Hash option, you can see data potion which is waiting for data input. I decided to put in some data into the data option and you can see from the image below that the hash ID have changed. This means that any new data changes the Hash Id .

Similarly from the Block option menu this what you will see when you click on it.

This also contains the block numbers, it can either be block 1,2 ,3 or any other block number. It also contains similar portion for data entry, I typed in some data which again changed the hash id.

From my observation from the site a correct Hash should start with zeros which means that when the hash does not start with zeroes it becomes red meaning is invalid. For instance lets use the distribution option to explain further. When you click on the distribution tab this is what appears.

I decided to write "hello" in the data portion of block 1 and you can see that the hash becomes invalid. To make the hash valid you need to click on the mine button below.

And after clicking on the button you will see it changes from red to green and even the hash now starts with zeroes.

This applies to every block you insert data in and anytime you decide to change data from previous block it affects the current block making all invalid unless updated.

Explain the advantages and disadvantages of using blockchain technology!
Blockchain technology provides as with both good and bad merits, as the saying goes in everything good there is also bad. Lets start by looking at the good.

Advantages of Blockchain Technology

• Security: the end to end encryption blockchain provides enables it to be very secure making it nearly impossible to hack. By anonymizing data and requiring permissions to limit access, blockchain provides a certain amount of security for its users .
• No third parties interference, this means that there is no government interference on blockchain. No government or financial institution has control of the cryptocurrencies based on blockchain technology. This means no goverment can interfere in the value of the crypto currencies.
• It is fast and reliable, a person who deals in crypto and someone who deals in the old way of sending money like the banks all though is still in use. People who deal with crypto can make series of transactions within a day whereas banks may take a couple of days to make a simple transaction.

Disadvantages of Blockchain Technology

• May be difficult to use by people with less intellect on technology. In other to make transactions using crypto you may sometimes have to be familiar with technology a little bit because things may confuse you.
• Blockchain solutions may sometimes consume a lot of energy. Anytime a ledger is updated with a new transaction, the miners need to solve complex mathematical problems hence consumption of much energy.
• Private keys can also create a lot of problems. During the creation of these blockchain accounts users are given private keys and these keys are the only keys that can be used to access their accounts. Instances where these keys are forgotten or misplaced all data will be loss and the user will have to start from scratch, this is very risky.

CONCLUSION
Blockchain transactions are very fast and reliable. It is also a secure way to trade since data in encrypted and stored in ledgers. Blockchain has is flaws and every one must be vigilant and not to fall pray to is weaknesses, is also now the most popular way of making transactions and every should try and a little about blockchain. I have really learnt a lot today and i hope to learn more in this mini program. Thank you all for reading and i hope to see you next time.
Peace!!