Decentralization is not a new concept but one of the primary architectures when building a product or any technology solution. Because the network is open and transparent, and all transactions are recorded on a public ledger, decentralization provides greater transparency and security. This allows anyone to view and verify network transactions, which helps to ensure the system's integrity.
Overall, decentralization is an important aspect of blockchain technology that contributes to the network's security, transparency, and integrity.
In blockchain technology, decentralization is essential, because it gives users control over data, and allows them to make decisions without the permission of a third party. Moreover, decentralization is the removal of control from a centralized system (individual, organization, or group) to a distributed network.
In this article, We will center our focus on Blockchain Technology, where the concentration will be on the subject below:
- What is Blockchain Technology
- What are the different types of Blockchain Technology
- Use of Blockchain Technology
- Blockchain Technology Vs. Cryptocurrency
- Are there any Blockchain-free resources for learning
- Conclusion
What is Blockchain Technology?
Blockchain Technology is a network system that stores information such as transaction records, credentials, and other details on a different computer network and doesn’t allow changes from a third party.
A ledger in blockchain is similar to a database, where all the activities are kept. The blockchain ledger is made up of different blocks and this block maintains all information and records.
Now, let's get acquainted with the purpose of Blockchain Technology.
What is the Purpose of Blockchain Technology?
The Purpose of Blockchain Technology; is stated below
To allow digital information to be recorded and distributed.
- To end data manipulation.
- To instill transparency over data regulation.
- To record transactions that will remain unchanged.
- To build trust, unlock value, etc.
Having known that, to be fully knowledgeable, let's look at the different types of Blockchain Technology.
What are the different types of Blockchain Technology?
In Blockchain Technology, we have four (4) types of Blockchains, and these are
- Public Blockchains
- Private Blockchains
- Hybrid Blockchains
- Consortium Blockchains
Now, let's go into more detail with the above-listed types.
Public Blockchains
A public blockchain is an open, decentralized distributed ledger in which anyone can participate as a user or validator. Public blockchains are frequently used to create a secure and transparent record of transactions, such as financial or supply chain records.
Let's see an example of a public blockchain, and this includes Bitcoin, Ethereum, Litecoin, Dash, and the Zcash blockchain. Each of these blockchains has its own unique features and uses, but all of them are open to the public and allow anyone to participate.
Private Blockchains
A private Blockchain is a blockchain network owned by external bodies such as an organization that only grants access to users through invitation, and every user is validated before entries.
An example of a private blockchain could be a company that uses a blockchain to track the movement of goods within its supply chain. The company could set up a private blockchain network and grant access to its partners, such as suppliers and customers, to enable them to track the movement of goods and ensure the integrity of the supply chain.
Hybrid Blockchains
A hybrid blockchain is a blockchain network owned by a single organization that shared both private and public blockchain attributes, this allows private organizations to develop a permission-based system related to the public-based system (permissionless).
Here is an example of a hybrid blockchain:
Consider a supply chain management system that a number of businesses use to monitor the flow of products from the manufacturer to the retailer. A hybrid blockchain might be used to build this system, giving supply chain participants access to the blockchain's private section so they can add, edit, and confirm data regarding the movement of items. However, by enabling customers, regulators, and other stakeholders to examine the information about the movement of goods without being able to edit it, the public section of the blockchain can be used to bring transparency to them. By doing this, businesses may continue to give external parties access to their internal processes and data while maintaining their privacy.
Consortium Blockchains.
A consortium blockchain is a particular kind of blockchain network that is run by several firms as opposed to just one. When participating companies wish to have some degree of network control and the power to decide how the network is run, this kind of blockchain is often employed.
The Marco Polo network, a trade finance platform run by a consortium of banks, trade finance providers, and technology firms, is another example of a consortium blockchain. The participating organizations can contribute to the creation and management of the platform, which is aimed to automate and streamline trade finance procedures.
Moreover, consortium blockchains are a helpful tool for businesses who want to work together on a single blockchain platform while yet having some degree of control over the network's growth.
Use of Blockchain Technology
With the help of blockchain technology, numerous parties may safely keep and record transactions in a way that is transparent, unchangeable, and secure. It is frequently employed to produce a digital ledger of transactions, which can be used to trace the flow of assets, confirm the legitimacy of papers, or distribute data storage.
The development of cryptocurrencies like Bitcoin is one of the best-known uses of blockchain technology. The blockchain is used in this scenario to monitor the transfer of digital currency from one person to another and to confirm the legitimacy of transactions.
Other potential uses for blockchain technology include
Financial Institutions: Blockchain technology can be used to build safe and open financial institutions, such as bitcoin exchanges and digital wallets.
Supply chain management: By tracking the flow of items across a supply chain, blockchain technology can make sure that products are sourced effectively and ethically.
Identity verification: Using blockchain technology, digital identities may be made secure and verifiable. These identities can then be utilized for everything from passport and voting system verification to online voting.
Smart contracts: Using blockchain technology, self-executing contracts that take effect when certain criteria are met are created, allowing for the automation of intricate legal arrangements.
Data management: Blockchain technology can be used to build transparent, safe systems for storing and exchanging sensitive data, including academic or medical records.
Overall, blockchain technology has the potential to change a variety of industries by facilitating safe, open, and effective data management and transaction processes.
Let’s now look at the comparison between Blockchain Technology and Cryptocurrency.
Blockchain Technology vs Cryptocurrency
According to cirusfoundation, below are the differences:
| SN | Blockchain Technology | Cryptocurrency |
|---|---|---|
| 1 | Blockchain Technology is a decentralized platform. | Cryptocurrency is decentralized asset. |
| 2 | Blockchain can be public or private. | Cryptocurrency is mostly public. |
| 3 | Blockchain is immutable. | Cryptocurrency is not. |
| 4 | Blockchain is slow and has limited scalability. | Cryptocurrency is fast and has the potential for infinite scalability. |
| 5 | Blockchain is a distributed database that allows for secure, transparent, and tamper-proof record-keeping. | Cryptocurrency is a digital asset that uses cryptography for security. |
Now that you have a good understanding of Blockchain Technology. Let’s see some good platforms you can visit to learn more about emerging technology.
Are there any Blockchain free resources for learning?
Sure, to answer your question, below are resource places you can always look up to and stay updated:
- Blockchain by IBM
- Blockchain and Deep Learning: Future of AI
- Bitcoin and Cryptocurrency Technologies
- Introduction to Cryptocurrencies And Blockchain
- Bitcoin and Cryptocurrencies
- Introduction to Hyperledger Blockchain Technologies
- Blockchain Theory 101
- Introduction to Enterprise Blockchain
- The complete course on Understanding Blockchain Technology
- Blockchain Essentials
- Blockchain Fundamentals
- Ethereum Development course - Blockchain Berkeley
- Blockchain - Principles and Practices
The above platform has been carefully selected for your consumption and to give you a good start in your journey to learn Blockchain Technology at large.
Conclusion
Blockchain Technology is a distributed ledger, an open-source technology that allows anyone to build Smart contract applications: and also allows the transparency of information shared within the business circle.
That being said, we have been able to cover the basic aspect of “Blockchain Technology” where we explained what blockchain technology is all about and the purpose of blockchain technology, and also share resources, where you can learn a lot more about the new technology.
Finally, it will be great for you to take advantage of the new technology through learning and staying updated.
Thanks for reading.
Top comments (0)