What Is Blockchain And Basics Of Ethereum Blockchain Network
By Pruthwiraj Nayak on ALTCOIN MAGAZINE
Before 5 months, there was a lot of news about blockchain and about its implementation, which surfaces around the news. Like Microsoft reveals its fully managed blockchain service to its cloud computing platform, Azure. Then another news was there about Russia’s testing of e-voting system based on blockchain. This attracts my attention toward blockchain.
- Here is the simplest explanation about blockchain:
Blockchain is a decentralized database. Database means where we store data digitally and decentralize means there is no particular single admin for this network. Everyone in this network gets the equal privilege. This makes the blockchain decentralized. It uses a peer-to-peer network for data sharing. All the nodes inside this network have a copy of that blockchain, which makes it transparent.
Blockchain is a chain of blocks and each block consist of 3parts
1. Data
2. Hash (consider as the fingerprint of that block)
3. Hash of the previous block
The cryptographic hashes take a vital role in the security of the blockchain. Any changes inside the blockchain data cause a change of the hash of that particular block; which change the hash of the next block too. Similarly, all the consecutive blocks after that block get change, if we try to change any data inside the network. And then if we try to deploy that copy to the main network, then it gets rejected. This makes the blockchain immutable.
The starting block of the network is known as the genesis block. Genesis block contains the previous block hash as 0x000….000(64 bits). Hashes are in the hexadecimal form. For any type of data input inside blocks, it requires some amount of time (12–15 second in Ethereum blockchain and 10 minutes in bitcoin blockchain). This is also known as proof-of-work. It increases it’s security so that no-one can change a lot of data of this network within a fraction of time. That means here security is in-built.
The first implementation of blockchain was done for the bitcoin (only for money transaction). But after that, people start to know its numerous potentials. Nowadays, there are many blockchain networks present, but Ethereum blockchain is popular among them. The cryptocurrency it uses is ETHER. The smallest unit of its currency is wei. Nowadays, blockchains are used for private data storage, establishing a deal among the party, etc. Blockchain establish trust between two parties during any type of transaction. So it is also known as trust-less decentralize ledger system.
Inside Ethereum blockchain, data can be added in the form of a smart contract. In this network, smart contracts are written in solidity programming. These are the piece of code which establishes some logic in the blockchain, under which different parties agree to interact with each other. Smart contract permit trusted transaction between valid two parties without any central authority.
Blockchain has its numerous potentials. Its implementation can totally change our economy. We can eliminate all third-party vendors, which are providing services to us, like Zomato and Uber. And there is also many possibilities of implementation of blockchain, that we can’t explore till now.
