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I’d like to see Blockchain technology and various usecases in detail.
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Following the NFT minting event we learned about last time, what we will learn today is: That’s right, blockchain technology!
First, let’s learn about blockchain.
Blockchain
The decentralized system that records and stores information is called ‘blockchain.’
It is a type of Decentralized Ledger Technology consisting of ‘blocks’, data units linked in a series, and each block contains the unique number of the previous block, forming a chain.
It serves as a database and is known to be used in cryptocurrency.
Simply put, it is a digital ledger that is replicated and distributed throughout a network of computing systems operated by a specific *protocol, making the system difficult or impossible to change or hack, and recording information in a decentralized manner.
*Protocol: Within a computer or between computers
A system of rules that define how data is exchanged
The core concept is decentralization, which, unlike the centralized ledger, which is the existing transaction method, pursues P2P (Peer to Peer) transactions in which ledger data recording transaction information is recorded and managed by all communities participating in the network rather than a central server.
In a blockchain, transaction information is stored in blocks, connected sequentially, and shared among all participants.
Next, we will take a closer look at blockchain-based transaction methods, including these core concepts.
The transaction process proceeds as shown above.
First, if you wish to send money and request a transaction, a block containing the relevant transaction information is created.
Once the block is sent to all participants on the network, the participants mutually verify the validity of the transaction information.
The transaction details that match the data of the majority of participants are verified with a normal ledger. The verified block is linked to the previous block, a copy of it is created, distributed and stored on each user’s computer, and the transfer is completed and traded.
Each time a transaction is made, a block containing transaction information is created, connected, and distributed and stored on all participants’ computers. In order to arbitrarily modify, forge, or falsify this block, the transaction information of more than half of all participants must be modified at the same time, so the transaction information must be modified by hacking. , it is impossible to forge or alter.
Therefore, unlike existing centralized systems, in blockchain, transactions are made safely between parties without third-party guarantees, with all transaction information made public for anyone to view.
There are several types of blockchain technology.
I’ll explain with the picture below!
First, public blockchain networks are the most common type of blockchain and anyone can access them.
Cryptocurrencies run on these chains and offer the least amount of privacy in terms of transaction and activity logs.
Private blockchains are ideal for companies or organizations that want to use the technology without the extreme decentralization of public blockchains.
Rather than being distributed across nodes around the world, these blockchains can be maintained across multiple devices within a workplace.
This blockchain approach allows for a higher level of safety and privacy.
Permissioned blockchain networks are also a good option for businesses.
It literally means a permissioned blockchain.
Access must be granted through a central administrator or use an automated verification process.
A private blockchain can be permissioned and vice versa.
Consortium blockchains are similar to private and permissioned blockchains, but can be shared across multiple organizations.
For example, multiple companies or government agencies may be responsible for maintaining *nodes in a blockchain network.
Although it may still remain relatively private, members of all organizations involved will have access to the stored data.
*Connection point or end point of data transmission or redistribution point in the network
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