Core Blockchain Technology Concepts

[Whited35 15285]

Understanding blockchain technology in-depth is not an easier task, is it? Today, I am trying my best to provide all the necessary core concepts of blockchain technology. I believe it will help you to learn so many things effortlessly. So no need to wrap your head around blockchain anymore. It was invented by Satoshi Nakamoto but it is still not clear if it was a person or a group.

 

What is blockchain technology?

The core point is to be noted, blockchain is immutable records of databases followed by specific time stamps and managed by a cluster of computers from all around the world. It has no central authority so it is a Distributed Ledger Technology(DLT). Rather than copied data, blockchain allows information to be distributed with security, trust, and transparency. A block from a chain consists of a bundle of transactions protected by advanced encryption and chain is principles followed by complex codes(belong to cryptography) that bound blocks with each other. 

 

A block contains the following things 

 

 

Data:- Data stored in a block is determined by the type of blockchain. For example -A block from the Bitcoin blockchain network consists of information about the receiver, sender, and amounts of Bitcoin. Files in a block can be in ”.txt” format or other specific files to belong in a database.  

Hash:- A hash in the blockchain is a special function that converts input data into encrypted output. Hashing is carried out based on the complex mathematical operation. For your better understanding, Bitcoin addresses are from hashing, and they use SHA2-256 and RIPEMD 160. Transactions on the blockchain can be thought of as two hashes are communicating with each other for a successful transaction . 

Nonce:- Full form of the nonce is number only used once. A nonce value(32-bit whole number) is a unique number that is interconnected with hash. By locating nonce value on the blockchain, you can say a transaction has happened and it can not be done with conventional currency.

Check the diagram, you can see the relation of nonce and hash on the blockchain.

 

 

Blockchain is much more than a tool used in the financial sector. It has a wide range of applications like voter fraud prevention, improving the working efficiency of government, helping people to have financial freedom, and many more due to its features as shown in the following figure.

 

 

Types of blockchain networks

 

 

 

 

 

 

Security of Blockchain

Security in blockchain technology is ensured by advanced encryption that is followed by cryptography and complex mathematical operations. So if you can not trust hashing or mathematics, you can not trust blockchain. Secure Hash Algorithm (SHA) 256-bit encryption is the most valuable encryption to ensure top-class security to the blockchain. Codes followed by it are unique and provides the outputs(64 alphanumeric characters long every time) when we give the different inputs so the same input can never generate the different hash. 

 

 

Information on the block can not be changed because it already consists of a hash from the previous block. If some malicious user tries to change something in a block, that block will be broken down and the community can immediately know something is wrong there and that something wrong can do nothing.

 

 

Hash is important to protect identity in the blockchain. The hash is your private key and public key to identify you uniquely. A hash can be deciphered but it would possibly take around 1 billion years with all computing powers. So this is the reason, once you lost your wallet accessing private key or secret phrases, no one would be there to recover the lost private key because reversing work done by the algorithm is extremely complicated. 

 

Blockchain network hack

Not all blockchain network can be easily hacked but some of them can be hacked, here are some possibilities:-

You can also create your blockchain network if you have an excellent technical background related to computer science. 

 

Thank You! 
 

 

 

Edited October 21, 2020 by Whited35
Image is added, table is not properly supported !!

[rekter 8129]

For some reason this was the first time i even heard the term "consortium blockchain" so i need to read more about it tonight, or is it another word for corporate blockchain, just more specific maybe?

 

Anyway, very cool! This is pretty much pinned post material.

[kyoukage01 3181]

7 hours ago, Whited35 said:

Blockchain network hack

Not all blockchain network can be easily hacked but some of them can be hacked, here are some possibilities:-

It looks like you've ran out of extra characters out of the ~4,000 limit for the contest. Would you like to explain the quote above in more detail on the next post, please?

 

Like, some cryptocurrencies like BTC and ETH became victims of 51% attacks and bug exploitation at some point AFAIK, but I've never heard of coins that fell for Sybil and DDOS attacks. Care to cite some examples for the latter two?

 

[Whited35 15285]

8 hours ago, rekter said:

For some reason this was the first time i even heard the term "consortium blockchain" so i need to read more about it tonight, or is it another word for corporate blockchain, just more specific maybe?

@rekter Brother, yes. It can be represented by different names like permissioned blockchain, hybrid blockchain, and your name corporate blockchain also fits perfectly 😉

1 hour ago, kyoukage01 said:

It looks like you've ran out of extra characters out of the ~4,000 limit for the contest. Would you like to explain the quote above in more detail on the next post, please?

@kyoukage01 It is tested before posting here. If you copy the texts from this topic to count the characters, it also consists the metadata of illustrative images and characters from that data may not be counted (waiting explanation from officials) also, it has collectively under 4K characters without spaces.

1 hour ago, kyoukage01 said:

Like, some cryptocurrencies like BTC and ETH became victims of 51% attacks and bug exploitation at some point AFAIK, but I've never heard of coins that fell for Sybil and DDOS attacks. Care to cite some examples for the latter two?

I supposed to include more about this matter in this topic but characters counts exceeded 15K, I have drafts of them and of course I will involve them in the next topic. I touched a little bit in this topic too so that I could link it to the next topic. Thanks. 

[Ridam 7455]

Great post @Whited35 for all information regarding the Blockchain network. Until now I was only aware of Public Blockchain and I was seeing Blockchain as a public ledger but it's changed now as Private Blockchain are also there. I'm also waiting for the explanation about the Sybil Attack on a Blockchain as it's new for me.

[Projectcrypto 4382]

22 hours ago, rekter said:

For some reason this was the first time i even heard the term "consortium blockchain" so i need to read more about it tonight, or is it another word for corporate blockchain, just more specific maybe?

 

Anyway, very cool! This is pretty much pinned post material.

You are very wise mate because it is not good to jump into something without knowing the meaning and other informations, so we should always make sure we make good personal research to avoid miss understanding which can lead us to great lose especially in this cryptoworld where we have many challenges.

[Whited35 15285]

3 hours ago, Ridam said:

Great post @Whited35 for all information regarding the Blockchain network. Until now I was only aware of Public Blockchain and I was seeing Blockchain as a public ledger but it's changed now as Private Blockchain are also there. I'm also waiting for the explanation about the Sybil Attack on a Blockchain as it's new for me.

@Ridam tutorial about Sybil Attack is also on the way. I tried to post it now but still some fixes are required in the texts. I am trying my best to give technical blockchain related concepts. Hope there will be more in near future. Wait. 

[LUISAHG. 49]

The Basics of blockchain technology.
Blockchain technology was introduced to revolutionize the financial sector. Many financial institutes and banks have taken advantage of blockchain to make transactions secure and cut out the middlemen.
But blockchain technology is not just limited to the financial sector. From automotive to retail, healthcare, manufacturing, and travel, every industry is investing in blockchain to reap its benefits.
The technical concept behind the blockchain is similar to that of a database, but the interaction with that database is completely different.
For developers who want to learn about blockchain development, it is essential to understand how they will write software applications in the future and how different blockchain concepts such as consensus, trusted computing, smart contracts, and file storage systems interact with each other in a decentralized environment. . .
For you to learn how to develop blockchain applications or implement blockchain development in companies, we have covered the following topic:
Blockchain is an incorruptible blockchain where each block contains valuable data that is validated by all nodes on the network, not by any central authority. Each block in the chain includes its hash value and that of the previous block, which acts as a unique fingerprint so that no one can manipulate the data stored in it.
Information stored on the blockchain can never be deleted or modified. Instead, a new block needs to be added to the chain to update the information...

[Whited35 15285]

23 hours ago, LUISAHG. said:

Information stored on the blockchain can never be deleted or modified. Instead, a new block needs to be added to the chain to update the information

Due to this feature, blockchain  is considered as safest and advanced distributed ledger technology. Information is equally distributed to the all participating nodes within a specific blockchain network and data stored on the blockchain can not be erased or modified. 

[Syedbesharat 5423]

This article have all the necessary information related to blockchain where you can  understand it and can figure out how the blockchain is working, how your transactions been made. It explain all systemic operation of crypto currency which run at blockchain.

[Whited35 15285]

On 10/28/2020 at 5:13 PM, Syedbesharat said:

This article have all the necessary information related to blockchain where you can  understand it and can figure out how the blockchain is working, how your transactions been made. It explain all systemic operation of crypto currency which run at blockchain.

This topic consists the core concepts. Another sequence of this topic topic i.e. other concepts in Blockcahin Technology is on the way, keep visiting Tutorials section on this forum. Really, I am working hard to give the best possible information to this crypto community. Thanks. 

[tienda 8776]

Thank you teach @Whited35 for your lesson! really it is a great topic with a lot of information and details about Blockchain technology it feels like we are in school! Yes without the doubt Blockchain technology is very advanced than any other processing system and today there are a lot of companies and institution who are interested to this best technology.

[Whited35 15285]

2 hours ago, tienda said:

Thank you teach @Whited35 for your lesson! really it is a great topic with a lot of information and details about Blockchain technology it feels like we are in school! Yes without the doubt Blockchain technology is very advanced than any other processing system and today there are a lot of companies and institution who are interested to this best technology.

@tiendaGlad to hear it helped you. Is there anything else that I can help you regarding the blockchain technology? I might be more than happy to assist you with my best possible ideas. I have spent my important time to understand more about the blockchain technology. 

[Raqeebzy 6456]

Consortium blockchain network? My core blockchain knowledge is sure still an infant because this is my first time reading that. So is it safe to conclude totally, it is an hybrid between private and public blockchain? Not totally centralised and not wholly decentralized?

[Whited35 15285]

3 hours ago, Raqeebzy said:

Consortium blockchain network? My core blockchain knowledge is sure still an infant because this is my first time reading that. So is it safe to conclude totally, it is an hybrid between private and public blockchain? Not totally centralised and not wholly decentralized?

@Raqeebzy Yes, they are controlled by trusted organizations and access to such blockchain network are limited as there will be all known participating nodes. Decentralization for this blockchain is limited to the participating nodes only 😉. 

[Raqeebzy 6456]

3 hours ago, Whited35 said:

@Raqeebzy Yes, they are controlled by trusted organizations and access to such blockchain network are limited as there will be all known participating nodes. Decentralization for this blockchain is limited to the participating nodes only 😉. 

Great. I think such blockchain algorithm can have much application than the public blockchain which are completely decentralized. For example, it can be applied in business organizations. I will find space and learn more on it.

Edited December 4, 2020 by Raqeebzy

[Whited35 15285]

1 hour ago, Raqeebzy said:

Great. I think such blockchain algorithm can have much application than the private blockchain which are completely decentralized.

@Raqeebzy I think you meant to say public blockchain 😀 ! Be extremely careful while writing each words because it is core technical matter. In private blockchain network, all participating nodes are known. Biggest blockchain networks like BTC, ETH have unknown cluster of computers associated with the blockchain networks so they are public blockchain networks. 

[Raqeebzy 6456]

1 hour ago, Whited35 said:

@Raqeebzy I think you meant to say public blockchain 😀 ! Be extremely careful while writing each words because it is core technical matter. In private blockchain network, all participating nodes are known. Biggest blockchain networks like BTC, ETH have unknown cluster of computers associated with the blockchain networks so they are public blockchain networks. 

Obviously, you should know that is just a mistake in typing - maybe because I was busy with other things; you don't have to school me on public/private blockchain 😅. I think rather, we should talk more on consortium you mentioned. Where do you think its application can be perfect?.

Edited December 4, 2020 by Raqeebzy

[Whited35 15285]

17 hours ago, Raqeebzy said:

maybe because I was busy with other things; you don't have to school me on public/private blockchain 😅

@Raqeebzy I know but I pointed it so that no one will get confused with your typo mistakes. It is public discussion thread brother, I also encourage you to spot mistakes in my posts in that way, we can share information correctly. 

Yes, consortium blockchain is perfect to provide the cross-discipline solutions for some organization as it is semi-private blockchain. Nodes can perform operations according to the requirements of organizations. Perfect example in the chart for this sort of blockchain and I hope you would not say again, I knew all about this too, "do not school me😜" Pardon me, brother !  

Edited December 5, 2020 by Whited35
Minor error in texts.

[Froshk 1828]

These is pretty much  beginners delight, I had to read and consult other materials to understand some terms, 

@Whited35it's a great piece of information, thanks 

[Whited35 15285]

27 minutes ago, Froshk said:

These is pretty much  beginners delight, I had to read and consult other materials to understand some terms, 

@Whited35it's a great piece of information, thanks 

If you have anything else that you have not understood about the Blockchain technology, you can still ask me and I will be happy to help you in simple language. Sharing ideas on forum is the great way to boost of my own knowledge. 

[merlina54 14]

 

I think I will read this material several more times, I am still a beginner and there are several terms that I do not understand and I think that researching those terms and rereading this information will give me more understanding, I appreciate that you took the time, the truth is that previously I found various information on this topic but it was overwhelming for me, this on the contrary is easier to understand.

[Whited35 15285]

On 3/5/2021 at 3:12 PM, Rabiu Dallatu said:

this point is well explained by one of the senior and experience member on this platform who always do everything possible to guide the new members on this platform, hopefully the issue of blochchain has now been solved thank you so much dude for this cute article. 

No issues have been discussed here, just the knowledge is being shared through this topic. You can get ideas about the PoW Bitcoin blockchain technology from this topic. Illustrative images are there to make the things clear to the ordinary visitors on this forum. If any questions related to the Blockchain technology are there, you might ask me question. 

[Shadi29 871]

It is necessary and useful to know everything about any work that you will do, collect all information about the system, technology and laws, thank you for this wonderful information about Blocchin technology and for the very useful explanation you provided and provided new terms, really thank you, noble friend  Because I benefited a lot from your post