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Blockchain
Although the concept of blockchain is very old,
people's interest in blockchain technology has increased recently due to the
rise in popularity of Bitcoin and cryptocurrencies in the past few years.
Because, most of the cryptocurrency work based on this blockchain technology.
Blockchain simply means a chain made of blocks. And we
all know what chain means. A chain is the joining of similar elements side by
side to form a chain. So, the term blockchain refers to creating a chain of
blocks by linking many such blocks together. And the blocks that make up this
chain basically store the information.
Technically defined, blockchain is a distributed
ledger, open to all. Once a piece of information is entered into the blocks of
the blockchain, it is almost impossible to delete that piece of information or
make any kind of change to the piece of information.
Components of Blockchain:
To know this, you must first know what each of these
blocks contains. Each block in a complete blockchain basically consists of
three things-
1) The block's own information
2) the block's own hash and
3) Hash of the previous block attached immediately
after this block.
A hash is basically an identifier. Each block's hash
is absolutely unique to it and specific to everyone. That is, the hashes of two
blocks can never be the same. This matter is much like a human fingerprint.
Just as no two human fingerprints can ever be the same, no two block hashes can
ever match. These hashes are generated based on the information stored in each
block. That is, if the data of a block is changed in any way, then the hash of
that block will also be changed.
That is why each block also stores the hash of the
previous block. If each block keeps track of the hash associated with it, then
no one can change the information in a block at will. So, it is almost
impossible to delete or change every piece of information entered into the
blockchain. Because, in this case, if you want to change the data in a block,
then you have to change the data of that block as well as all the previous
blocks. Otherwise, the entire blockchain will stop working.
How Blockchain Works
By now you must have understood how blockchain
technology ensures data security. But another big reason blockchain is secure
is its distributed network system. Blockchain essentially creates a
peer-to-peer network where the information in each block of the blockchain can
be identified by anyone with an internet connection. When a new person
registers in this blockchain network, he gets a copy of all the blocks before
him and before him, and he identifies each block and makes sure that every
information in the blockchain is still correct. The more times each block in
the blockchain is identified, the more immutable the data becomes. This is
basically how blockchain technology works.
Cryptocurrency
Did you know that each cryptocurrency transaction
usually takes at least 10 minutes to process? The reason for this is the
blockchain. Each new block is created every 10 minutes to ensure security in
cryptocurrency transactions. So when a transaction request is made, one has to
wait at least 10 minutes to create a new block with that transaction.
Advantages of Blockchain:
Blockchain technology is becoming popular day by day
because of its many advantages. Advantages of blockchain technology are as
follows:
• The main advantage of
blockchain technology is that anyone can access it, use blockchain technology
and work on quality improvement.
• Technology is used to
store information in a decentralized manner so that everyone can verify the
correctness of the information using zero-knowledge proof whereby one party
proves the correctness of the data to another party without revealing anything
about the data.
• There is absolutely no
possibility of losing records stored using blockchain technology as duplicate
copies are stored at each local node.
• Blockchain technology
is a highly trusted technology as no single party controls it.
• Blockchain technology
uses advanced hashing techniques to store each transaction in an interconnected
block that is much more secure. This technology uses SHA 256 (hashing
algorithm) to store transactions.
• Data cannot be tampered
with in blockchain technology as it is decentralized i.e, many blocks are
connected to each other. If someone tampers or changes one data it will affect
all other nodes. This technology can be called tamper-proof technology as any
type of fraud can be prevented using this application.
• Blockchain is a transparent
technology for transactions where all the nodes in the network have a copy of
the transaction in the network so that any changes in the transaction can be
easily observed by other nodes.
• Since there is no
third-party intervention in transactions on the blockchain, the system reduces
costs for businesses and builds trust among other users.
Disadvantages of Blockchain:
Blockchain, like any other technology, has some
disadvantages. Disadvantages of blockchain technology are given below:
• Blockchain is too expensive to implement so no one
can use it if they want to.
• Blockchain mining farms require a large number of
devices that require a lot of power to operate
• If a user can control more than 50% of the mining
power, he has the potential to change the entire blockchain.
• The user's own wallet (a kind of electronic bag in
which the necessary information is stored) has to be kept by itself and if it
is hacked for any reason, all the personal information of the customer is
likely to be stolen.
• Although it was invented in 1991, its use did not
grow as expected due to its complexity and cost.
• This can create a disadvantage in some cases as
blockchain data is immutable
Types of Blockchain
There are four types of blockchain as:
1. Public Blockchain
2. Private Blockchain
3. Hybrid Blockchain
4. Consortium Blockchain
Real life use of Blockchain Technology :
There
are some real-world problems where blockchain technology can be used in:
1. Secure voting management
system.
2. Supply chain management system
3. Healthcare management system
4. Large real estate project
management.
5. NFT (non-fungible token)
marketplace.
6. Differentiate between copyright
& original content.
7. Integral data backup making.
8. IoT (Internet of Things)
Technology
1) What is Blockchain Technology?
Blockchain simply means a chain made of blocks. And we
all know what chain means. A chain is the joining of similar elements side by
side to form a chain. So, the term blockchain refers to creating a chain of
blocks by linking many such blocks together.
2) What are the components of blockchain?
Each block of blockchain basically consists of three
things-
1) The block's own information
2) the block's own hash and
3) Hash of the previous block attached immediately
after this block.
3) What is hashing?
Hashing is a technique where raw data is converted
into a code using different algorithms. Some popular hashing algorithms are MD5,
SHA-1, SHA-2, NTLM, and LANMAN.
4) What type of network is used in
blockchain?
Blockchain essentially creates a peer-to-peer network
where the information in each block of the blockchain can be identified by
anyone with an internet connection.
5) How long does it usually take to
process a cryptocurrency transaction?
Cryptocurrency transactions usually take at least 10
minutes to process
6) Can blockchain technology be tampered
with?
Data cannot be
tampered with in blockchain technology as it is decentralized i.e. many blocks
are connected to each other. If someone tampers or changes one data it will
affect all other nodes. Any type of fraud is used for this purpose
7) When was blockchain first invented?
Blockchain was first invented in 2008 by a person (or
group of people) named Satoshi
Nakamoto
.
8) What are the advantages of blockchain?
Advantages of Blockchain Technology:
• The main advantage of blockchain technology is that
anyone can access it, use blockchain technology and work on quality
improvement.
• Tamper of data is almost impossible
• There is absolutely no possibility of losing records
stored using blockchain technology as duplicate copies are stored at each local
node.
• Blockchain technology is a highly trusted technology
as no single party controls it.
• Blockchain technology uses advanced hashing
techniques to store each transaction in an interconnected block that is much
more secure.
• If someone tampers or changes one data it will
affect all other nodes. Hence any type of fraud can be prevented by using this
app
• Transparent technology for blockchain transactions
• There is no third party intervention in transactions
on blockchain.
9) What are the disadvantages of
blockchain?
Blockchain, like any other technology, has some
disadvantages. Disadvantages of blockchain technology are as follows:
• Blockchain is too expensive to implement so no one
can use it if they want to.
• Blockchain mining farms require a large number of
devices
• Blockchain mining requires a lot of power to operate
• If a user can control more than 50% of the mining
power, he has the potential to change the entire blockchain.
• Users have to save their own wallets themselves
• If it gets hacked for any reason then all the
personal information of the customer is likely to be stolen
• It is complex and expensive
10) Blockchain in Bangladesh or not?
Even though blockchain technology is not yet
introduced in Bangladesh, some banks have worked with blockchain in their
letters of credit.
11) What is e-currency or digital
currency?
All currencies that are available digitally are
digital currencies. An example of virtual currency and cryptocurrency. Some of
the important cryptocurrencies are:
• Bitcoin (BTC)
• Ethereum (ETH)
• Binance Coin (BNB)
• Tether (USDT)
• Cardano (ADT)
12) How does blockchain work?
Blockchain essentially creates a peer-to-peer network
where the information in each block of the blockchain can be identified by
anyone with an internet connection. When a new person registers in this
blockchain network, he gets a copy of all the blocks before him and before him,
and he identifies each block and makes sure that every information in the
blockchain is still correct. The more times each block in the blockchain is
identified, the more immutable the data becomes. This is basically how blockchain
technology works.
13) What are the types of Blockchain?
There
are four types of blockchain as:
1. Public Blockchain
2. Private Blockchain
3. Hybrid Blockchain
4. Consortium Blockchain
What are the uses of Blockchain Technology :
There
are some real-world problems where blockchain technology can be used in:
1. Secure voting management
system.
2. Supply chain management system
3. Healthcare management system
4. Large real estate project
management.
5. NFT (non-fungible token)
marketplace.
6. Differentiate between copyright
& original content.
7. Integral data backup making.
8. IoT (Internet of Things)
Technology
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