So Whats The Blockchain Anyway?

Introduction

This article provides an in-depth guide on what the blockchain and cryptocurrency is, the supremacy of the Algorand blockchain over many other blockchain services and how to get started with the Algorand blockchain as a developer.

In the mid-20’s, the only secure place you can save your assets is in a bank, And its been link that for a while.

The bank works great, your assets are secured and you could reference them anytime, Still, one fault about banks is that all your information and transaction records are centralized, i.e They are controlled by some set of individual and all these information can be tampered with.

Imagine you’ve sent a thousand dollar ($1,000) to a friend, the bank can tamper with this transaction (if they want to) and change the amount you’ve sent to $1,500 (No bank would want to try that though).

And banks are quite hack-able too!, an attacker who had gotten access to a bank database can control all the bank transactions

So here is what inspired the creation of the blockchain, a non-hackable decentralized ledger/transaction system that is not controlled by any individual (sounds cool 😎).

History Of The Blockchain

Flashback to the year 2009, a man/woman (he is anonymous 🤡) named Satoshi Nakamoto created the first blockchain along with a cryptocurrency popularly known as the “Bitcoin”

In the blockchain whitepaper, he describe the blockchain as “a distributed and decentralized ledger that stores data such as transactions, publicly shared across multiple nodes”, the data stored is called the block and they all are connected to each other like a chain, each block having its own unique hash

Nodes are devices (like a computer) that contains a full copy of all the blockchain transaction history

Detailed Explanation:

The first block is called the genesis block, and the generation of a new block depends on some inputs and the hash of the previous block. So as new blocks are created, each one has a reference to the hash of the last block as its public data and they are connected to each other kinda like a chain structure. This makes it 90% safe from cyber attacks.

An illustration of the blockchain

Centralized VS Decentralized System:

Centralized System

  • One entity records the data
  • This entity has a full authority to individual assets
  • You’ll have to trust the entity to transact with them
  • Not fully secure

Decentralized System

  • Everybody records the data
  • No one have authority to individual assets
  • No entity to trust, You only need to trust the system.
  • Highly Secure

Applications of the Blockchain:

The blockchain has diverse applications, some of which includes:

  • Financial Services (Cryptocurrencies) — A new method of making transactions on the internet
  • Health Care
  • Secure Voting System
  • Dapp — Decentralized applications

Cryptocurrencies

Cryptocurrency (cryptocoin) in a nutshell, is a digital medium of exchange, i.e a new form of money. What makes cryptocurrency important is that it leverages the blockchain system in performing and recording transactions.

Examples of cryptocurrencies includes: Bitcoin, Ethereum, Algo, Lite coin, Stellar and many more.

A cryptocoin has three main features:

1. A blockchain to store the transactions.

2. A digital wallet: an encrypted data that serves as your id for sending and receiving cryptocoin from/to others.

3. Mining

Mining in Details

Photo by Austin Distel on Unsplash

Mining means getting rewarded for verifying transactions, when new transactions are submitted to the blockchain, they are unconfirmed by default, so using a proof of work(pow)/proof of stake(pos) algorithm, miners are able to verify these transactions and get rewarded for it. Though this requires a large computational power and also time consuming.

Algorand Blockchain 🔥

Algorand Logo 🚀

The Algorand blockchain was introduced in 2017 by Silvio Micali a Turing award winner along with some brilliant engineers.

Algorand introduces the the world’s first open-sourced, permission-less, pure proof-of-stake blockchain protocol that, without forking, provides the necessary security, scalability, and decentralization needed for today’s economy. Algorand is building the bordeless economy 🤯.

Algorand For Developers 👨‍💻

Algorand makes it super easy for developers to build on the blockchain with SDK for languages including: Java, Javascript, Go SDK and Rest API’s. The good news is Algorand also offer an analytic tool to monitor your Dapp!.

Algorand source code is open-source and available on GitHub. And integrating the Algorand code base is seamlessly easy, you can integrate the algorand sdk to create a Dapp in less than 20 lines of code.

Resources to the SDK’s can be found here

Introducing Algorand 2.0

Algorand introduces an upgrade that significantly expands the range of decentralized applications (Dapps) and processes that can be built on the Algorand platform.

Algorand 2.0 has 3 key features which are:

  • Algorand Standard Asset (ASA): This offers customizable options during an asset transaction that enables one to control the level of authority of a transaction, thereby giving full ownership of the asset.
  • Atomic Transfer: Atomic Transfers offer a secure and faster way to simultaneously transfer a number of assets among a number of parties.
  • Algorand Smart Contracts (ASC 1): This offers fast, secure and extremely low-cost cross-chain atomic transactions with regulated disbursements.
Algorand 2.0

More on Algorand 2.0 Here

The Algo 👛

Algo is a cryptocurrency built on top of the super Algorand blockchain, with the aim of solving financial inequality problem. All you need to get started is download the algo wallet app, create your new account and you’ll find your wallet that makes receiving and transferring algo seamlessly easy.

Another great new is every address that has 1 Algo or more earns rewards as soon as a new block is added to the chain, whether you are online or offline. see more info here

Conclusion

In this article, we’ve dived into what the blockchain is, the history of blockchain, how the blockchain works, cryptocurrencies, and the algorand blockchain. if you enjoy reading, you can help with 50 👏 and hit the follow button below or follow me on twitter 🚀

Thanks for reading.

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A full stack web developer, chat bot developer, tech enthusiast.

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Asaolu Elijah

Asaolu Elijah

A full stack web developer, chat bot developer, tech enthusiast.

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