For Blockchain Technology take an example of a world where an individual or an organization can send money directly to the respective entity without any bank, in a matter of seconds instead of days with no unnecessary fees from banks. Also, suppose you can save money on an online wallet that has no link to the bank, in a sense, an individual will be their bank. There will be no need for permission from the bank or whatsoever from anyone when the person wants to access their money. The blockchain of 2021 is just like what the internet was in the late 1990s. and just like the internet, blockchain is a trend and nothing else.
Blockchain Technology is the concept or protocol behind the running of blockchain. Blockchain makes crypto like Bitcoin work just like the internet makes email possible. Blockchain is unchangeable if one transaction is recorded, it cannot be altered or undone. It has a distributed digital ledger which means a digital record of data or transactions that are saved in many places on the computer network with many use cases apart from cryptocurrencies.
Working on Blockchain Technology
4 Types of Blockchain
1. Public blockchains:
They are an open, decentralized network of computers that is available to everyone who is requesting or processing a transaction’s validity. Those miners who authenticate these transactions receive rewards. Public blockchains use the proof of stake or Proof of work mechanism of consensus.
2. Private Blockchains
The private blockchains are not accessible to everyone, they have some restrictions while accessing. People who wish to join must fulfill the requirements to get permission. They usually have one entity that leads them, meaning they are centralized like Hyperledger, which is a private centralized blockchain.
3. Hybrid Blockchains
Consortiums or hybrid blockchains are the combination of private and public blockchains meaning they have features of both centralized and decentralized. Like Web Foundation, Dragonchain, and R3.
4. Sidechains
A sidechain is a blockchain running side by side to the main chain. It helps users to transfer or move their holdings among two different blockchains which helps in improving performance and efficiency. Like Liquid Network.
Top 3 Blockchains in 2024
- ETHEREUM
Ethereum was introduced in 2013, Ethereum is known to be the old, leading, and most structured platform of blockchains. It offers users decentralized blockchains that are at the same level as the Bitcoin Blockchain network. Alex Manders said that its strength lies in enabling true decentralization with support for smart contracts. It has weaknesses which are slow processing times and high costs of transaction in comparison with other platforms. Ethereum has its cryptocurrency named “Ether”
- IBM BLOCKCHAIN
IBM blockchain technology is a private decentralized network of blockchain that was most successful with less risk-averse enterprise clients. Alex Manders said that he has seen the biggest opportunity to link it to cloud networks and legacy technologies which are more efficient in comparison with other decentralized networks
There are some examples of blockchain applications including IBM Food Trust, which has surpassed 18 million transactions showing more than 17,000 products, and their Thailand community of blockchain which is supporting services like payment obligations and enterprise auctions for 22 Thai banks.
- HYPERLEDGER FABRIC
Hyperledger Fabric is a set of tools for making applications of blockchain. It is succeeded by the Linux Foundation which is built from scratch with enterprise distributed ledger. It has an advanced system of components that can be integrated into a modular architecture. It can work seamlessly in a closed network of blockchain deployments which can enhance efficiency and reliability. It can support various models of data like account and unspent transaction output UTXO models have a very advanced community of developers by Enterprise Ethereum Alliance, which has more than 250 members like JPMorgan Microsoft, and Intel.