Types and Problems of Blockchain
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In last blog we saw Blockchain is immutable, distributed ledger technology. Today let’s learn about different types of blockchains.
Not until recent years blockchain was seen as the thing that only deals with cryptocurrency. Many of the people still don’t know what blockchain can be used for. Very few people knows, How blockchain is playing part in shaping the future of how data should be handled.
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In current era data is everything and when I say everything I mean everything. If some records every move you have made, every decision you have made, etc and creates a dataset and feeds it to a ML algorithms they can create your twin. Now you can understand how important it is.
The problem with current applications is they being controlled by one person, they have access over our data. Being dependent on there applications we surrendered our data in exchange of there service without knowing , how they are going to use our data. Whether they will sell it or they will use it for their own purpose no-one knows.
To Solve this we started shifting on Blockchain. Now blockchain is not only used for cryptocurrency or NFT. Applications can be built on it which functions like current ones but they are better and secure.
There are different types of Blockchains which allows building of applications.
For example: Ethereum, Polygon, Hyperledger Fabric, Mina etc.
The Blockchain have layers:
Layer 1, Layer 2, …..
The Layer 1 blockchain are the parent chains. Layer 2 blockchain are built on this Layer 1 blockchain as scaling solution.
For example:
Ethereum is a layer 1 blockchain. You can do transactions, you can write smart contracts etc. But the the cost of the gas(It is the amount paid to the miner to validate your block) for transaction is quiet high.
To scale layer 2 blockchains are built on top of it, like Polygon. It is layer 2 blockchain which has same functions as the Layer 1 blockchain but has low gas cost and some better feature.
Currently there are more than 10000+ blockchains. But as you know their is one major problem with them. They can’t talk to each other.
All blockchains have different configurations they run on. So, one blockchain cannot interact with other.
This is a huge problem for all the users as they cannot transfer there assets from one blockchain to other.
There are some solutions to this, we will discuss them in next blog.
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