About Blockchain

 

Blockchain is a shared public ledger system where every user has the updated version of the entire past transaction history represented by the chain of blocks itself. It is the most secure and decentralized way to perform value-based services online.

How is this possible?

Blockchain uses traditional technologies like databases, hashing, and cryptography to replace trust with mathematical proof. Every node has the updated version of the current blockchain and they together verify the transactions in each block before adding them to the blockchain.

 

Why hashing?

The node needs to be updated with the current blockchain after every block creation.  It wouldn’t be feasible to download the blocks and thus the transactions within it as it is. The amount of memory used to store the blockchain would be staggering and would discourage nodes from participating. To solve this all the transactions of a given block are compressed using a form of hashing called Merkle hashing.

Hashing returns a unique fingerprint for each block hashed.

This also helps in securing a transaction as any tampering of the transaction can be easily detected.

(https://brilliant.org/wiki/secure-hashing-algorithms/)

Block, chain?

A miner in the system is a node that helps in verifying a block before the system can add it to the blockchain. All the miners in a system try to solve a complex mathematical puzzle to get the reward associated with it. This is called proof of work and helps in maintaining trust.

Once the block is verified, it is chained to the blockchain by adding the previous

block’s hash value to its block. This chaining prevents tampering of individual blocks as the chain will be broken.

The block is a container of the block header and the transactions.

The header contains the metadata information which is useful for both the mining and the chaining process. The transactions are stored in a Merkle tree structure and the Merkle root obtained is stored in the block header.

(bitcoin.org/en/developer-guide#block-chain-overview)

In this manner, Blockchain is a decentralized technology that allows for security and integrity of transaction information by eliminating trust between nodes and establishing consensus among through a secure validation mechanism.

Blockchain 101 is a series of posts that aim to make the concepts of blockchain easy and understandable. 
Stay tuned for more! 

Applications of the Blockchain Technology

 

What is the blockchain technology?

 

The blockchain technology is defined as a public ledger of all cryptocurrency transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.

blockchain technology

Thus as per the above diagram, since there is no centralized administrator with exclusive control over the database, and since the control over the database is distributed to every client, therefore the blockchain technology is democratic in nature. 

 

What are the applications of the blockchain technology and what are the services provided by tradescrypt.com?

 

Business Services

 

Decentralized Autonomous Organization (DAO) (also known as a fully automated business entity (FAB), or distributed autonomous corporation/company (DAC)) can be considered as a self-governing organization under the control of an incorruptible set of business rules. These rules are typically implemented as publicly auditable open-source software distributed across the computers of their stakeholders. A human becomes a stakeholder by buying digital tokens, similar to shares in a company, or by being paid in those tokens to provide services for the company. These tokens may entitle its owner to a share of the profits of the DAO, participation in its growth, and/or a say in how it is run.

 

Financial Services

 

  • Asset Management: Trade Processing and Settlement

  • Payments: Cross-Border Payments

 

Cryptocurrency Consultancy / Information Services

 

For more details on the blockchain technology services offered by tradescrypt.com, kindly fill the Contact Us form or email to support@tradescrypt.com.