Proof of Work is the first and most popular consensus algorithm used by most blockchains like Bitcoin, Ethereum, and Litecoin. To better understand how blockchain works, it is important to have a good understanding of how Proof of Work actually works and why is it so critical for decentralization.
Proof of Work was initially invented as a spam prevention mechanism. In a nutshell, it requires the user to solve a complex mathematical puzzle in order for his message to be valid. The puzzle used is a cryptographic hash puzzle. …
In the previous article, I’ve mentioned the term “hard fork”. In this article, I will give an explanation of what a fork is, what are the different types of forks and will briefly discuss the recent “hard forks” in Bitcoin and other currencies.
All blockchains are based on some hard-coded pre-determined rules, this is the protocol rules. The protocol rules are used to determine whether a new block is valid or not. In Bitcoin, for example, we have the Proof of Work rules which require the solution to use the SHA256 hashing algorithm.
The last article explained the idea of DAOs, but I think we can’t talk about DAOs without mentioning “The DAO”.
The DAO was the first DAO to run on the Ethereum blockchain, it was built by the Ethereum community to be a decentralized venture capital. The DAO was launched on April 30, 2016. It was controlled and operated by its token holders. For funding, the project raised around 150M$.
In June 2016, a user exploited vulnerability in the code of the smart contract of the DAO and successfully stole 3.6 million Ether, which at the time was worth around 50M$.
One of the main goals of the blockchain revolution is to transform the way we handle governance. While the idea of political governance might jump to mind first, there is a new interesting aspect relating to company and organizational governance, which can utilize decentralization and blockchain technology to create a new way these type of entities operate. This idea is called DAO, which stands for “Decentralized Autonomous Organization”.
Let’s start exploring this by thinking about traditional companies. They can come in different forms from gigantic organizations like Google or Facebook, to even your local, more modest, grocery store.
Last article, we talked about Dapps, what makes them different from regular apps and why we believe they can make a real revolution in the way people interact utilize the internet.
In this article, we’ll explain how you can start using Dapps right away.
Dapps are based on a blockchain — We’ll start by covering the Ethereum Blockchain since the majority of Dapps are built on it. The first step is getting an Ethereum wallet. When using Dapps, your wallet is not just where you store your money, but rather it is your online identity. In fact, your wallet is…
As promised in the last article, this time we’ll cover Decentralized Apps, or Dapps for short. We’ll cover what they are, and why we believe they’re going to completely change the consumer product landscape.
To understand what a Dapp is, you can start by thinking of a regular application, like Facebook, eBay, Gmail etc. Currently, these apps are built in a way that where everything is stored on the respective company’s servers, alongside maintaining full ownership and control of both the app itself and the data the users pass in as they interact with it. All companies empowering these apps…
Blockchain has started a huge revolution in lots of aspects in our lives, it has the potential of disrupting so sectors such as financial services, healthcare, logistics, social networks, online gaming and much more. The first and biggest change blockchain brings is the way we think, use and interact with money. This started with Bitcoin, which brought a decentralized global system of transacting value. After Bitcoin, the most prominent cryptocurrency is Ethereum, which brought us the first implementation of smart contracts.
Lately, the Lightning Network concept attracted big attention as the next growth solution for Bitcoin (and other crypto-currencies). This article aims to give an explanation of the Lightning Network concept, how it works, and how it will affect the industry.
The Lightning Network is part of what is known as a “Second Layer Solution”. This means a solution that comes on top of an existing blockchain, without having to make any changes, and allows an improvement of the existing blockchain.
In simple words, the Lightning Network aims to enable instant transactions at a small to no fee, all fully secured…
Ethereum will soon implement the Proof of Stake (PoS) mining method. So what is PoS all about and how does it differ from Proof of Work (PoW)?
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