From the past till now we can see there are so many changes in terms of technologies. When we talk about emerging technologies there are many technologies to talk about like Artificial intelligence, Internet Of Things, 5G network, Blockchain, Cryptocurrency etc. Too many interesting technologies ruling the internet now. Let’s now talk about Blockchain as well as cryptocurrency. In this article we will talk about Blockchain and cryptocurrency as well as their relationship with each other.
Let’s talk firstly about Blockchain. What is it? As the name suggests, Blockchain is a chain of growing records, also known as blocks. These blocks are linked to cryptography in this way that in each block you will find the cryptographic hash (transaction of cryptocurrency) of the previous block. You must know Satoshi Nakamoto was the one who created this amazing technology of Blockchain. In this technology digital information is distributed.
Blockchain was originally invented for Bitcoin and digital currency but as we are moving to the future we can see it’s range is broadened. Cryptocurrencies are used for reading Blockchains publically. There are presently 3 types of Blockchains.
- Public Blockchains: These type of blockchains are not restricted to access. If you have an internet connection then you can become the validator by sending transactions. For example, Bitcoin.
- Private Blockchains: These blockchains can not be accessed with being invited by network administrators. Access of validators and participants are restricted. If a company wants to have a blockchain tech but not interested in public ones then these blockchains act as the middle ground for them.
- Consortium blockchains: It is also said to be semi-centralised one. Here a no. Of companies are responsible for operating a node on every network. Access is allowed to a limited set of nodes that are trusted enough to execute a harmonious protocol.
Blockchains have different uses like:
- For recording transactions Cryptocurrencies use blockchains. Biggest example is bitcoin and ethereum. Both of them are based on the concept of Blockchain.
- Distributer ledgers are used in banks and comprises the major part of financial industry. This tech can fasten the bank office settlement systems.
- Blockchains are also used for the purpose of creating ledger system (public, transparent, permanent) that is used for compiling sales data, tracking digital use and payments.
If you are interested in this technology then you can become a blockchain developer. There are two types of blockchain developers.
- Core blockchain developers, who are responsible for designing and managing the security of blockchain system. They design the network architecture and supervise the whole network.
- Blockchain software developer, who are responsible for developing smart contacts and front-end designs for Dapps. They are also used for supervising the stacks running these Dapps.
If you want to become a blockchain developer then you must have the knowledge about cryptography, data structures, blockchain architecture and more things. If you want to know more about it you can enrol yourself into blockchain development courses in nearby training centres.
Other thing I will write about is Cryptocurrency. Just like blockchain if you want to know more about cryptocurrency you can take cryptocurrency training. People may confuse them as same but they aren’t. They just work together and dependent on each other. Mostly cryptocurrency is relying on blockchains, e.g. Bitcoin. In order to run properly cryptocurrency needs blockchains.
Cryptocurrency was never planned but it was invented when Satoshi created digital currency with any central entity. In ordinary language one can define cryptocurrency as those limited or restricted entries in a database that cannot be changed by anyone without fulfilling the specific conditions. A distributed ledger, a blockchain controls the cryptocurrency in a decentralised way.
Bitcoin was considered to be the first decentralised cryptocurrency. Cryptocurrency is transferred between peers and confirmed in a public ledger through the process called mining. How does this thing works is the next question. Let’s see then.
- Firstly all the confirmed transactions of created cryptocurrencies are stored in a public ledger. Identities of the coin owners are encrypted and legitimacy of records is maintained by other cryptographic techniques. These are the digital wallets.
- After that transfer of funds between two digital wallets (transaction) takes place. It waits for the confirmation in the public ledger. At this time an encrypted electronic signature is used. Miners mine and confirms the transaction. After this the transaction is added to the public ledger.
- By the process of mining transactions are confirmed. Anyone can confirm the transaction as mining is an open source. To solve the puzzle a block of transaction is added to the ledger by the first miner. After this the transactions are permanent and adds transaction fee to the miner’s wallet.
So in this article you can see what Blockchains and cryptocurrency are and how they work. You can take training about them to know more of them.
Visit our new website INDOVISION GLOBAL