Sirwin
Sirwin

What is blockchain?


Blockchain Technology

 

Blockchain applications, which are expected to be relevant in many sectors, are often characterized by the need for disintermediation and decentralization. This innovation allows, potentially, to do without banks, notaries, financial institutions and so on. Blockchain technologies are included in the broader family of Distributed Ledger technologies (see here for a technical definition of Distributed Ledger and Blockchain), i.e. systems that are based on a distributed ledger, which can be read and modified by multiple nodes of a network. To validate the changes to be made to the register, in the absence of a central body, the nodes must reach consensus. The ways in which consensus is reached and the structure of the register are some of the characteristics that characterize the various Distributed Ledger technologies.

How does the blockchain work and what are the validation processes?

 

Before proceeding we need to familiarize yourself with two terms: blockchain nodes and miners. The first are the computers on the network that have downloaded the blockchain into their memory; anyone can become a node, through the appropriate program (Bitcoin Core for example for Bitcoin Blockchain). Miners are those who control transactions, thanks to very powerful computers and through a rather complex validation protocol (explained later), and whose work is rewarded with a reward (the now common term for this operation is "undermine ", Italianizing the English term to mine that is to extract). The validation protocol (which defines the validating algorithms and who can be a miner) therefore represents the main vital element of the blockchain because it is precisely on this that the speed of the chain and its security substantially depend (the algorithms that govern this process do not they only validate that each new entry meets certain criteria, but they also prevent data already present in the chain from being tampered with). It is therefore in this area that the main evolutions are seen and that the different blockchains differ from a technological point of view. However, it is important to emphasize that one protocol is not necessarily better than another: the use of one or the other also depends on the type of application for which the blockchain is used.

The main validation protocols are: Proof of Work - It is the first validation protocol, on which the first blockchain, Bitcoin, was based and still the most widespread today. Every 10 minutes a new block, containing thousands of transactions, is entered into the blockchain. The criticality of this mechanism lies in the speed to mine a block because it is a protocol that, as the blockchain grows, requires more and more processing power in the computers of the miners. The validation time of a transaction (10 minutes) is one of the reasons for the greatest criticalities in terms of technology scalability. Proof of Stake - It was created to address the problem of the scalability of the previous protocol, simplifying the mining process. The protocol also provides that when a new block is added, the creator of the next block is automatically chosen; to carry out this selection operation different methods are used today. Federated Byzantine Agreement (FBA) - If those described are the two main protocols, others have been created, partly derivative of these, partly with totally new elements. Among the most interesting we point out Federated Byzantine Agreement (FBA), developed by the Stellar Development Foundation (and used since the second half of 2015 by the Stellar blockchain) based on units of trust (quorum slices) decided by the individual servers which together establish the level of consensus of the system

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Leonardo Barbieri
Leonardo Barbieri

Junior Web developer who want to share ideas and content


theworldofinformatic
theworldofinformatic

Talk about a general theams of the world of informatic, like chatbot , blockchain , book ecc.

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