A blockchain is essentially a well distributed database of records or public ledger of all transaction or digital events that have been executed and shared among participating parties. Each transaction in the public ledger is verified by the consensus of majority of the participants system. And once entered, information can never be erased. HIRE WRITERS ONLINE.
It contains a certain and verifiable record of every single transaction ever made. Bitcoin, the decentralized peer to peer digital currency most popular example that uses Blockchain technology.
The blocks are added to the blockchain in a linear, chorological order. Each full node has a copy of the blockchain, which is downloaded automatically when the miner joins the bitcoin network. It has complete information about addresses and balances from the genesis block.
The blockchain is seen is the main technological innovation of bitcoin because stand as trustless proof mechanism of all transactions on the network its literally like a giant spreadsheet for registering all assets, and an accounting system for transacting them on a global scale that can be used for any form of asset registry, inventory, and exchange including every area of finance, economics, and money.
Financial sector is one of the most active areas of blockchain, especially in the field of cryptocurrency. Since the advent of the first carrier bitcoin in the blockchain, various cryptocurrencies have emerged. Because bitcoin anonymity, verifiability, decentralization and consensus mechanisms are characteristics coming of bitcoins have improved cryptocurrencies and made other features to emerge.
Healthcare is also ready to invest in blockchains as new business cases emerge. Several characteristics provided by the blockchain are of great interest to healthcare organizations. It provides opportunity to create a platform for reliable records which highly fragmented healthcare records can be combined and tracked.
As a distributed immutable transparent ledger, the blockchain is a natural fit for digital advertising supply chain advertisement fraud, inefficiency and lack of transparency always been core issues that digital advertising needs to solve and this is solved by blockchain.
Traditional insurance policies are often processes on paper contracts, which means claims and payments are error prone and often require human supervision.
Blockchain improves insurance industry efficiency from 4 respects: fraud elimination, claims automation, data analysis with the internet of things and insurance with all data including personal, historical credit information, accident environmental information and historical information all flows in the blockchain network, the inherent scalability of blockchain and the assistance of IoT, the insurance industry that sales risks will usher in huge revolution
The trading of energy and commodities, even the simplest transaction, is often a balanced game of multiparty from execution to the conclusion of the transaction, both parties should coordinate and verify the transaction, all this have adapted the blockchain technology
Types of block chain
This type of a blockchain allows anyone to participate as users, miners, developers, or community members. All transaction that takes place on public blockchain are fully transparent. They are designed to be fully decentralized with no individual controlling transaction. Public blockchain can be highly censorship resistant since anyone is open to join the network regardless of who he is.
This type are also called permissioned blockchain it possess a number of difference from public blockchain for instance participant need consent to join the networks, transaction are private and only available to ecosystem participant that have been granted permission not forgetting that private blockchains are more centralized compared to public block chains
This collaborative model of blockchain offers some of the best use case for the benefits of blockchain bringing together group of business who work together but also compete against each other. They are able to be more efficient both individually and collectively by collaborating on the same aspects of the business.
Components of a blockchain architecture
Block: A block consist of the black header and the block body the block header contains a block version.it is a data structure used for keeping a set of transaction which is distributed to all nodes.
Node: This is the user or a computer within the blockchain architecture independent copy and whole blockchain ledger
Transaction: Smallest building block of a blockchain system it serves as the purpose of a blockchain.
Chain: Sequence of blocks in a specific order
Miners: Specific nodes which perform the block verification process before adding anything to the block chain structure
Consensus: A set of rules and arrangements to carry out blockchain operations.
Key characteristics of blockchain architecture
Challenges of blockchain technology
Increasing transaction day by day make the blockchain bulky. Capacity of blocks are very small and there are millions of transaction small transaction may be delayed since miner prefer those transaction with high transaction fee.
Blockchain can preserve a certain amount of privacy through the public key and private key recent study has shown that user’s bitcoin transaction can be linked to reveal users information.
Block is susceptible to attacks of colluding selfish miners. It’s been realize that the network is vulnerable even if only a small portion of hashing power is used to cheat. In selfish mining strategy, selfish miners keep their mined blocks without broadcasting.
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