Eps 1: The Ultimate Secret Of THE BASICS OF BLOCKCHAIN
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Host
Michele Franklin
Podcast Content
Governments may even be using hybrid blockchains, to keep data about citizens private, but securely share the information across institutions. Companies can use a hybrid blockchain to operate systems privately, but expose some information, like lists, to the public. Generally, transactions and records on a hybrid blockchain are not made public, but they can be verified if necessary, for example, by permitting access via a smart contract.
Different types of information can be stored in the blockchain, but so far, the most common use has been as a record for transactions. Many blockchain networks function like a public database, meaning that anyone with an Internet connection can see the history of transactions in the network.
Because of the decentralized nature of their blockchains, all transactions can be transparently seen, by having either a personal node, or using blockchain visualizers, which enable anyone to view transactions occurring in real time.
By spreading the operations of a blockchain over a network of computers, blockchains enable the bitcoin network and other cryptocurrency networks to function without requiring central authority. In Bitcoins case, blockchain is used decentralized, such that no individual person or group has control--rather, all users collectively maintain control. For blockchains, this is accomplished by running the code on an open network of computers that anyone can participate in, leasing their computing power, and using cryptography to make transactions public, while keeping users data private.
Blockchain technology allows users to own their data, and to selectively disclose information to third parties only when necessary. Cryptocurrencies built on top of Blockchain technology provide individuals with the ability to conduct transactions anonymously and spend money without interference from another party. The main value proposition of a blockchain is its ability to store, validate, disseminate, and permanently record a vast amount of data, including records of transactions, thus allowing for the elimination of trusted third parties.
Blockchain is more simply defined as decentralized, distributed ledger technology which records the provenance of digital assets. Sometimes called distributed ledger technology , blockchain makes the history of any digital asset immutable and transparent by using decentralization and cryptographic hashing. Public blockchains are the place where cryptocurrencies such as bitcoin originated, and helped to popularize distributed ledger technology .
If you have been following banking, investing, or crypto for the past decade, then you may have heard of the term blockchain, a recording-keeping technology that is at the heart of Bitcoins network. As more information comes out on the Blockchain, the technology Bitcoin runs on, more questions about Blockchain technology arise.
As we move into a new age of blockchain and decentralization, it is impossible to talk about Bitcoin and cryptocurrency without talking about the technology that underpins these innovations. With all of the technology involved in making Bitcoin work, and decentralized platforms built on top of the blockchain, it is easy to forget that Bitcoin is all about new money. When you hear people talking about blockchain technology, it is more likely they are talking not only about the database itself, but also the ecosystem built on top of blockchain.
When you are making a transaction in a blockchain, you would better consider that it is indestructible for all time. With this, there are a lot of different blockchain implementations out there, and the most basic difference amongst them is the way that they achieve consensus on a network. Sometimes organizations will want the best of both worlds, and will utilize hybrid blockchains, a type of blockchain technology that merges elements from both private and public blockchains.
While it operates similarly to a public blockchain network, in the sense of using peer-to-peer connections and decentralization, this type of blockchain is much smaller scale. Hybrid blockchains enable organizations to establish a permission-based, private system along with a permissionless, public one, which allows them to control who has access to the particular data stored within the private one, as well as which data is exposed to the public. For instance, an organization setting up a private blockchain network could decide what nodes are allowed to see, add, or modify data.
If the potential users are capable of connecting to the Internet, they will then be able to communicate with the other peers in a public blockchain network. If someone leaves the network, then remaining users can still access the blockchain and share information among themselves. When a new block is added to the chain, data is spread throughout the network, so that each person can update his or her copy of the ledger.
From this foundation, the authors walk the reader through Bitcoins inception, as well as explaining how the blockchain works, including definitions for terms used frequently, which help guide the reader throughout the remainder of the piece. The book then covers how a Bitcoin network works in a practical sense, explaining the peer-to-peer nature of decentralized blockchains, as well as how transactions work within the network. In fact, the book lists multiple ways that blockchain could transform the future of money systems, transactions, and businesses.
My aim is to distill the core concepts into a single, seven-minute capsule, one thatll let you, at a minimum, keep track the next time you hear the words blockchain or cryptocurrency discussed. Author Andreas M. Antonopouloss writing is considered to be an authority on Bitcoin and crypto, and it may prove useful for those just getting started in the area, or looking to understand the more technical aspects of the bitcoin blockchain.