What is blockchain technology? – ITNEXT

What is blockchain technology?

The definition of “blockchain” on Wikipedia is “a distributed database that is used to maintain a continuously growing list of records called blocks… By design, blockchains are inherently resistant to modification of the data.” This article sets out to dissect the definition of “blockchain”.

The buzzword blockchain is getting more attention than ever. Meantime, fresh applications based on blockchain-technology are emerging rapidly. However, in order to be able to assess the value of these fresh initiatives, it’s significant to understand what the basics of this technology are. By answering key questions, this article aims to clarify the definition of Blockchain:

What is a distributed ledger?

In its core, the database behind blockchain is a ledger containing all transaction records. The ledger is distributed, which means there isn’t a single central point where the records are saved. All participants of the system can have an up-to-date copy of the database. It provides a see-through way where transactions inbetween two parties are verifiable and are stored permanently. Any transaction of ownership can be stored into the blockchain.

What are the measures against manipulation and forgery?

The lack of any central authority could be seen as a potential weakness, but in reality it is one of the security mechanisms. Verification of all transactions happens in the ledger itself. The information is encrypted and in many blockchain applications the participants own (a part of) the ledger. In every case, a utter version of the ledger is wielded by numerous users within the blockchain. These knots are the so called Utter Knots. If anyone attempts to shove false information to the ledger, the switches will be blocked by all other copies of the ledger.

Nobody in particular, in other words, its users. The source code has been published on the internet, permitting anyone to create a blockchain. In the case of so called “private blockchains”, ownership lies with the company that creates and maintains them. A private blockchain is generally used in order to chieve a particular business purpose. Apart from the centralized ownership, the same basic mechanics still apply.

The bookkeeping necessary to maintain a blockchain, requires computational power. A nifty way of dealing with this challenge is the method that Bitcoin uses, which is a blockchain-based virtual coin. In the Bitcoin blockchain, it’s possible to provide computational power to the blockchain, making you a so called “Miner”. You are now a “Full Node” as well, meaning that you carry a copy of the ledger. Your computational power is used to calculate cryptographic puzzles, which are necessary to validate transactions and add them to the ledger. This work costs computational power, which implies violet wand costs, as well as internet traffic. Performing this work eventually results in the creation of fresh Bitcoin, which will be rewarded to the miners. Other applications of blockchain (Private chains for example) may have to find another way to provide the bookkeeping. Some implementations include pre-mining all coins before using the chain, reducing the computational power necessary to perform bookkeeping as well as removing the (now unnecessary) prize structure. Unlike private implementations, a public chain like the Bitcoin blockchain needs a relatively high amount of computing power, as a result of the need for immutability & tamper-resistance.

How many users can a blockchain have?

In principle, a blockchain can grow as large as needed. There are technical limitations to any blockchain implementation, partly because the ledger must be stored and updated at each total knot. Another limitation is the cryptographic protocol used to add blocks to the chain, which is indirectly related to another limiting factor: the amount of computational power that may be required for mining.

What can a blockchain be used for?

The most known application for blockchain technology is to treat financial transactions, where Bitcoin is the most renowned example. However, apart from Bitcoin many other applications can be thought up, depending on the context. Examples include clever contracts, verification of identity without storing PII on the chain, digital rights management & content sharing free of the recording industry, stock trading and even storage. Note that these are examples that emerged relatively recently. Implementations like Ethereum and Antshares/Neo, which are development platforms based on blockchain, will likely spawn a myriad of blockchain applications we presently can’t even conceive.

Blockchain technology is one of the four key topics on ITNEXT Summit 2017. Do you want to see latest software developments and fresh technologies where Blockchain is the underlying technology? Get your tickets now and join ITNEXT Summit.

What is blockchain technology? – ITNEXT

What is blockchain technology?

The definition of “blockchain” on Wikipedia is “a distributed database that is used to maintain a continuously growing list of records called blocks… By design, blockchains are inherently resistant to modification of the data.” This article sets out to dissect the definition of “blockchain”.

The buzzword blockchain is getting more attention than ever. Meantime, fresh applications based on blockchain-technology are emerging rapidly. However, in order to be able to assess the value of these fresh initiatives, it’s significant to understand what the basics of this technology are. By answering key questions, this article aims to clarify the definition of Blockchain:

What is a distributed ledger?

In its core, the database behind blockchain is a ledger containing all transaction records. The ledger is distributed, which means there isn’t a single central point where the records are saved. All participants of the system can have an up-to-date copy of the database. It provides a semitransparent way where transactions inbetween two parties are verifiable and are stored permanently. Any transaction of ownership can be stored into the blockchain.

What are the measures against manipulation and forgery?

The lack of any central authority could be seen as a potential weakness, but in reality it is one of the security mechanisms. Verification of all transactions happens in the ledger itself. The information is encrypted and in many blockchain applications the participants own (a part of) the ledger. In every case, a total version of the ledger is possessed by numerous users within the blockchain. These knots are the so called Utter Knots. If anyone attempts to thrust false information to the ledger, the switches will be blocked by all other copies of the ledger.

Nobody in particular, in other words, its users. The source code has been published on the internet, permitting anyone to create a blockchain. In the case of so called “private blockchains”, ownership lies with the company that creates and maintains them. A private blockchain is generally used in order to chieve a particular business objective. Apart from the centralized ownership, the same basic mechanics still apply.

The bookkeeping necessary to maintain a blockchain, requires computational power. A nifty way of dealing with this challenge is the method that Bitcoin uses, which is a blockchain-based virtual coin. In the Bitcoin blockchain, it’s possible to provide computational power to the blockchain, making you a so called “Miner”. You are now a “Full Node” as well, meaning that you carry a copy of the ledger. Your computational power is used to calculate cryptographic puzzles, which are necessary to validate transactions and add them to the ledger. This work costs computational power, which implies tens unit costs, as well as internet traffic. Performing this work eventually results in the creation of fresh Bitcoin, which will be rewarded to the miners. Other applications of blockchain (Private chains for example) may have to find another way to provide the bookkeeping. Some implementations include pre-mining all coins before using the chain, reducing the computational power necessary to perform bookkeeping as well as removing the (now unnecessary) prize structure. Unlike private implementations, a public chain like the Bitcoin blockchain needs a relatively high amount of computing power, as a result of the need for immutability & tamper-resistance.

How many users can a blockchain have?

In principle, a blockchain can grow as large as needed. There are technical limitations to any blockchain implementation, partly because the ledger must be stored and updated at each utter knot. Another limitation is the cryptographic protocol used to add blocks to the chain, which is indirectly related to another limiting factor: the amount of computational power that may be required for mining.

What can a blockchain be used for?

The most known application for blockchain technology is to treat financial transactions, where Bitcoin is the most renowned example. However, apart from Bitcoin many other applications can be thought up, depending on the context. Examples include wise contracts, verification of identity without storing PII on the chain, digital rights management & content sharing free of the recording industry, stock trading and even storage. Note that these are examples that emerged relatively recently. Implementations like Ethereum and Antshares/Neo, which are development platforms based on blockchain, will likely spawn a myriad of blockchain applications we presently can’t even conceive.

Blockchain technology is one of the four key topics on ITNEXT Summit 2017. Do you want to see latest software developments and fresh technologies where Blockchain is the underlying technology? Get your tickets now and join ITNEXT Summit.

What is blockchain technology? – ITNEXT

What is blockchain technology?

The definition of “blockchain” on Wikipedia is “a distributed database that is used to maintain a continuously growing list of records called blocks… By design, blockchains are inherently resistant to modification of the data.” This article sets out to dissect the definition of “blockchain”.

The buzzword blockchain is getting more attention than ever. Meantime, fresh applications based on blockchain-technology are emerging rapidly. However, in order to be able to assess the value of these fresh initiatives, it’s significant to understand what the basics of this technology are. By answering key questions, this article aims to clarify the definition of Blockchain:

What is a distributed ledger?

In its core, the database behind blockchain is a ledger containing all transaction records. The ledger is distributed, which means there isn’t a single central point where the records are saved. All participants of the system can have an up-to-date copy of the database. It provides a semi-transparent way where transactions inbetween two parties are verifiable and are stored permanently. Any transaction of ownership can be stored into the blockchain.

What are the measures against manipulation and forgery?

The lack of any central authority could be seen as a potential weakness, but in reality it is one of the security mechanisms. Verification of all transactions happens in the ledger itself. The information is encrypted and in many blockchain applications the participants own (a part of) the ledger. In every case, a utter version of the ledger is possessed by numerous users within the blockchain. These knots are the so called Utter Knots. If anyone attempts to shove false information to the ledger, the switches will be blocked by all other copies of the ledger.

Nobody in particular, in other words, its users. The source code has been published on the internet, permitting anyone to create a blockchain. In the case of so called “private blockchains”, ownership lies with the company that creates and maintains them. A private blockchain is generally used in order to chieve a particular business objective. Apart from the centralized ownership, the same basic mechanics still apply.

The bookkeeping necessary to maintain a blockchain, requires computational power. A nifty way of dealing with this challenge is the method that Bitcoin uses, which is a blockchain-based virtual coin. In the Bitcoin blockchain, it’s possible to provide computational power to the blockchain, making you a so called “Miner”. You are now a “Full Node” as well, meaning that you carry a copy of the ledger. Your computational power is used to calculate cryptographic puzzles, which are necessary to validate transactions and add them to the ledger. This work costs computational power, which implies electro-stimulation costs, as well as internet traffic. Performing this work eventually results in the creation of fresh Bitcoin, which will be rewarded to the miners. Other applications of blockchain (Private chains for example) may have to find another way to provide the bookkeeping. Some implementations include pre-mining all coins before using the chain, reducing the computational power necessary to perform bookkeeping as well as removing the (now unnecessary) prize structure. Unlike private implementations, a public chain like the Bitcoin blockchain needs a relatively high amount of computing power, as a result of the need for immutability & tamper-resistance.

How many users can a blockchain have?

In principle, a blockchain can grow as large as needed. There are technical limitations to any blockchain implementation, partly because the ledger must be stored and updated at each total knot. Another limitation is the cryptographic protocol used to add blocks to the chain, which is indirectly related to another limiting factor: the amount of computational power that may be required for mining.

What can a blockchain be used for?

The most known application for blockchain technology is to treat financial transactions, where Bitcoin is the most renowned example. However, apart from Bitcoin many other applications can be thought up, depending on the context. Examples include clever contracts, verification of identity without storing PII on the chain, digital rights management & content sharing free of the recording industry, stock trading and even storage. Note that these are examples that emerged relatively recently. Implementations like Ethereum and Antshares/Neo, which are development platforms based on blockchain, will likely spawn a myriad of blockchain applications we presently can’t even conceive.

Blockchain technology is one of the four key topics on ITNEXT Summit 2017. Do you want to see latest software developments and fresh technologies where Blockchain is the underlying technology? Get your tickets now and join ITNEXT Summit.

What is blockchain technology? – ITNEXT

What is blockchain technology?

The definition of “blockchain” on Wikipedia is “a distributed database that is used to maintain a continuously growing list of records called blocks… By design, blockchains are inherently resistant to modification of the data.” This article sets out to dissect the definition of “blockchain”.

The buzzword blockchain is getting more attention than ever. Meantime, fresh applications based on blockchain-technology are emerging rapidly. However, in order to be able to assess the value of these fresh initiatives, it’s significant to understand what the basics of this technology are. By answering key questions, this article aims to clarify the definition of Blockchain:

What is a distributed ledger?

In its core, the database behind blockchain is a ledger containing all transaction records. The ledger is distributed, which means there isn’t a single central point where the records are saved. All participants of the system can have an up-to-date copy of the database. It provides a semitransparent way where transactions inbetween two parties are verifiable and are stored permanently. Any transaction of ownership can be stored into the blockchain.

What are the measures against manipulation and forgery?

The lack of any central authority could be seen as a potential weakness, but in reality it is one of the security mechanisms. Verification of all transactions happens in the ledger itself. The information is encrypted and in many blockchain applications the participants own (a part of) the ledger. In every case, a total version of the ledger is wielded by numerous users within the blockchain. These knots are the so called Total Knots. If anyone attempts to thrust false information to the ledger, the switches will be blocked by all other copies of the ledger.

Nobody in particular, in other words, its users. The source code has been published on the internet, permitting anyone to create a blockchain. In the case of so called “private blockchains”, ownership lies with the company that creates and maintains them. A private blockchain is generally used in order to chieve a particular business purpose. Apart from the centralized ownership, the same basic mechanics still apply.

The bookkeeping necessary to maintain a blockchain, requires computational power. A nifty way of dealing with this challenge is the method that Bitcoin uses, which is a blockchain-based virtual coin. In the Bitcoin blockchain, it’s possible to provide computational power to the blockchain, making you a so called “Miner”. You are now a “Full Node” as well, meaning that you carry a copy of the ledger. Your computational power is used to calculate cryptographic puzzles, which are necessary to validate transactions and add them to the ledger. This work costs computational power, which implies tens unit costs, as well as internet traffic. Performing this work eventually results in the creation of fresh Bitcoin, which will be rewarded to the miners. Other applications of blockchain (Private chains for example) may have to find another way to provide the bookkeeping. Some implementations include pre-mining all coins before using the chain, reducing the computational power necessary to perform bookkeeping as well as removing the (now unnecessary) prize structure. Unlike private implementations, a public chain like the Bitcoin blockchain needs a relatively high amount of computing power, as a result of the need for immutability & tamper-resistance.

How many users can a blockchain have?

In principle, a blockchain can grow as large as needed. There are technical limitations to any blockchain implementation, partly because the ledger must be stored and updated at each utter knot. Another limitation is the cryptographic protocol used to add blocks to the chain, which is indirectly related to another limiting factor: the amount of computational power that may be required for mining.

What can a blockchain be used for?

The most known application for blockchain technology is to treat financial transactions, where Bitcoin is the most renowned example. However, apart from Bitcoin many other applications can be thought up, depending on the context. Examples include clever contracts, verification of identity without storing PII on the chain, digital rights management & content sharing free of the recording industry, stock trading and even storage. Note that these are examples that emerged relatively recently. Implementations like Ethereum and Antshares/Neo, which are development platforms based on blockchain, will likely spawn a myriad of blockchain applications we presently can’t even conceive.

Blockchain technology is one of the four key topics on ITNEXT Summit 2017. Do you want to see latest software developments and fresh technologies where Blockchain is the underlying technology? Get your tickets now and join ITNEXT Summit.

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