Basic BlockChain Definitions Part1
Description:
I have explained basic private blockchain definition, we have to know these before starts to learn blockchain.
Blockchain:
· Blockchain in business is a decentralized system for the efficient and secure transaction of business assets(value). It's one of the distributed ledger technology
· No single authority owns or manages the blockchain in public blockchain
Block:
A block is a container data structure and a bundle of records.
The chain:
All blocks linked together.
Immutability:
The data structure in a blockchain is append-only. So, the data cannot be altered or deleted. It has inbuilt multi-version concurrency control.
Public Blockchain:
A Public Blockchain is a permissionless blockchain. Anyone can join the blockchain network, meaning that they can read, write, or participate with a public blockchain. Public blockchains are decentralized, no one has control over the network, and they are secure in that the data can’t be changed once validated on the blockchain.
Private Blockchain:
On the other hand, a Private Blockchain is a permissioned blockchain.
Permissioned networks place restrictions on who is allowed to participate in the network and in what transactions.
Permissioned networks place restrictions on who is allowed to participate in the network and in what transactions.
Decentralized Network:
All the nodes can access the information and compete to be the next to add to the database
Node:
In data communication, a node is any action, physical, an electronic device attached to a network. These devices are capable of either sending, receiving, or forwarding information
Distribute system:
Distributed networking, used in distributed computing, is the network system over which computer programming, software, and its data are spread out across more than one computer, but communicate complex messages through their nodes
Distributed Ledger:
A distributed ledger is a database that is decentralized i.e, Distributed across several compute nodes, In the technology, every node will maintain the ledger, and if any data changes happen, the ledger will get updated, the updating takes place independently at each node.
PEERS:
· A blockchain network is comprised of peer nodes, each of which can hold copies of ledgers and copies of smart contracts
· peer receives ordered state updates in the form of blocks from the ordering service and maintains the state and the ledger.
P2P
Stands for “Peer to Peer.” In a P2P network, the “peers” are computer systems that are connected to each other via the Internet. Files can be shared directly between systems on the network without the need for a central server. In other words, each computer on a P2P network becomes a file server as well as a client.
SHA256
· A cryptographic hash is like a signature for a text or a data file. SHA-256 algorithm generates an almost-unique, fixed-size 256-bit (32-byte) hash. Hash is a one-way function — it cannot be decrypted back. … SHA-256 is one of the successor hash functions to SHA-1 and is one of the strongest hash functions available.
· A hash function is a type of mathematical function which turns data into a fingerprint of that data called a hash. It’s like a formula or algorithm which takes the input data and turns it into an output of a fixed length.
Hashing:
Hashing is generating a value or values from a string of text using a mathematical function.
Consensus:
Consensus used in blockchain to achieve an agreement on adding new data value in distributed servers or nodes in the network. Blockchain consensus plays a very important role in a blockchain,
· Proof of Work
· Proof of Stake
· Delegated Proof of Stake
· Practical Byzantine fault-tolerant (PBFT) mechanism
· Proof of Identity
· Proof of Elapsed Time
· Proof of Importance
POW:
Creating the proof of work protocol for achieving consensus between devices on a distributed network The Proof of Work consensus algorithm involves solving a computationally challenging puzzle in order to create new blocks in the Bitcoin blockchain. Proof of work (abbreviated to PoW) is a consensus protocol introduced by Bitcoin and used widely by many other cryptocurrencies.
Cryptography:
cryptography refers to secure information and communication techniques derived from mathematical concepts and a set of rule-based calculations called algorithms to transform messages in ways that are hard to decipher.
Public Key:
A public key is created in public-key encryption cryptography that uses asymmetric-key encryption algorithms. Public keys are used to convert a message into an unreadable format. Decryption is carried out using a different, but matching, private key. Public and private keys are paired to enable secure communication.
Private Key:
The private key, the same key (secret key) is used for encryption and decryption. This key is symmetric because the only key is copy or share by another party to decrypt the ciphertext. It is faster than the public key cryptography.
Digital Signature:
A digital signature is a mathematical technique used to validate the authenticity and integrity of a message, software or digital document. The digital equivalent of a handwritten signature or stamped seal, a digital signature offers far more inherent security, and it is intended to solve the problem of tampering and impersonation in digital communications.
Cryptocurrency:
A cryptocurrency is a tradable digital asset or digital form of money, built on blockchain technology that only exists online. Cryptocurrencies use cryptography to verify and secure transactions, hence their name. There are currently well over one thousand different cryptocurrencies in the world
Nonce: The cryptographic puzzle that miners solve is to identify the value of the nonce. A nonce is a random number which can be used only one time. Mostly it is a random number with a combination of some data. Blockchain adds a value called nonce in each block.
Ledger:
Ledger is a record of financial transactions either kept in books or in a computing device.
Minning:
Define an expensive computer calculation, also called mining,
- To do so, miners should solve a mathematical puzzle known as the proof-of-work problem;
- A reward is given to the first miner who solves each blocks problem;
- Verified transactions are stored in the public blockchain
Mining serves as two purposes:
4. To verify the legitimacy of a transaction, or avoiding the so-called double-spending;
5. To create new digital currencies by rewarding miners for performing the previous task.
Byzantine Fault Tolerance:
Byzantine Fault Tolerance is one of the most difficult challenges addressed by blockchain technology. Byzantine Fault Tolerance means that two nodes can communicate safely across a network, knowing that they are displaying the same data.
What are Smart Contracts?
Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman Chaincode can be implemented in several programming languages.
