In the blockchain technology, bitcoin is the best-known implementation of the blockchain. There is a lot of development and the direction is based on the premise of what blockchain does to enable Bitcoin to happen. We can learn and expand how it can spread into so many different areas.

The blockchain technology fixes three things that the Internet was not designed to do. These three things are:
1. Value
2. Trust
3. Reliability

Value

With blockchain, you can actually create value on a digital asset. The value can be controlled by that person who owns it. It enables a unique asset to be transferred over the internet without a middle centralized agent.

Trust

Blockchain enables to securely assign ownership of a specific digital asset and be able to track who actually controls that asset at a time. In other words, blockchain creates a permanent, secure, unalterable record of who owns what. It uses advanced hash cryptography to preserve the integrity of the information.

Reliability

Blockchain distributes their workload among thousands of different computers worldwide. It provides reliability because if you have everything localized in one location, it becomes a single point of failure. But, its decentralized network structure ensures that there is no single point of failure which could bring the entire system down.

Blockchain Cryptocurrency

Cryptocurrency is a type of digital asset which is used to exchange value between parties. It uses strong cryptography to secure financial transactions and control the creation of new units of that currency and verify the transfer of assets. Cryptocurrency does not exist physically.
We know that the government prints the government currencies like fiat currency such as Dollar, Yen or Yuan itself. It means there is a centralized institution exists which can create thousands or millions or billions more of that currency. Unlike government currencies like bitcoin, these types of currencies are created by the same mathematical formulas that make the cryptocurrency work. Thus, cryptocurrencies use decentralized control, which works through distributed ledger technology that serves as a public financial transaction database.
Today, many different types of cryptocurrencies are available. Some of them are given below.

Bitcoin

Bitcoin is generally known as the first decentralized cryptocurrencies. It is created by the network of thousands of specific nodes called miners. The miners can process the bitcoin transactions in the blockchain network. Since the release of bitcoin, more than 4000 alternative variants of bitcoin are available now.

Litecoin

Litecoin cryptocurrency worked very similar to Bitcoin. We know that bitcoin wait ten minutes for a transaction block to be processed, but Litecoin can do this in maximum two and a half minutes. Litecoin doesn’t have a big market cap. The price of Litecoin is lower than Bitcoin, but it’s a very effective process and also has some variations from Bitcoin.

Z-Cash

Z-Cash is a privacy-protecting digital currency which is built-on strong science in cryptography. It provides enhanced privacy for its users as compared to other cryptocurrencies such as bitcoin. Here, transaction data is kept confidential, which is made possible through zero-knowledge proofs. It allows transactions to be verified without any information about the sender, receiver, and the amount transacted.
Z-Cash features known as viewing keys and payment disclosure makes it possible to disclose some of the user’s transaction data. It makes the transactions on Z-Cash auditable and regulation-compliant.

Monero

Monero is an open-source cryptocurrency which focuses on untraceable, privacy and decentralization. It is fast, private, and secure digital cash, which is operated by a network of users. We can use it to buy and sell things and can exchange for other coins or tokens.
It uses a special kind of cryptography which ensures that the transactions remain 100% untraceable. It focuses on anonymity, which is harder to track, whereas Bitcoin is pseudonymous, which transactions are still traceable.

Dash

Dash is a short form of Digital Cash. It is an open-source cryptocurrency and is a form of a decentralized autonomous organization which is run by a subset of users, called master nodes. It is one of the most promising alternative coins to bitcoin. It permits very fast transactions, which are untraceable.

Blockchain DAO

The DAO stands for Decentralized Autonomous Organization. As the name implies, it is an organization which is both autonomous and decentralized. Sometimes, it is also known as Decentralized Autonomous Corporation (DAC), but the term DAO is more often used because not all organizations are corporations.
A DAO is an organization which is represented by rules encoded as a computer program that is transparent, controlled by shareholders, and not influenced by the central government. A DAO is the most complex form of a smart contract. A smart contract is a computer program that autonomously exists on the internet, but at the same time, it needs people to perform a task that it can’t do by itself.
A DAO’s financial transaction record and program rules are maintained on a blockchain. Since DAO runs on a blockchain, and it’s running on a distributed network, you can have multiple combinations of different parties exchanging value and reaching agreements. It means that, to a Decentralized Autonomous Organization, it doesn’t matter that you are a human being or you are a robot. You can actually have devices communicating with devices, or devices communicating with people, or people communicating with people.

How does DAO work?

Decentralized Autonomous Organization runs through rules encoded as a computer program called Smart Contracts. A Smart Contract is an entity that lives on the internet and exists autonomously. It also has individuals to perform a certain task that the automation program itself cannot do.
Let us take an example of Uber to understand the working of DAO. Uber is an organization that allows you to call a car for yourself using a mobile app. Once you place your call, a driver will come up in a car, will pick you up and drive you to your destination. The app will take care of processing the payment, and the driver will be set off to go to the next rider. A mobile app runs the entire process. However, there is a human component, which is the driver that drives over and drives off.
Now, if you tie-in artificial intelligence, there is no reason to need a driver to come up and interact with you. You could have a self-driving car come over and pick you up. The whole thing is automated and self-executing so you can actually process the payment directly on the app and the car will interact with you directly, without requiring a human element. This type of process can be created into a Decentralized Autonomous Organization. Now, it doesn’t necessarily mean that you need to be replaced by a computer. You could actually have multiple human beings on a distributed network, and those human beings will reach these agreements based on smart contracts between each other.

Limitation of Blockchain Technology

Blockchain technology has enormous potential in creating trustless, decentralized applications. But it is not perfect. There are certain barriers which make the blockchain technology not the right choice and unusable for mainstream application. We can see the limitations of blockchain technology in the following image.

Lack of Awareness

There is a lot of discussion about blockchain, but people do not know the true value of blockchain and how they could implement it in different situations.

Limited availability of technical talent

Today, there are a lot of developers available who can do a lot of different things in every field. But in the blockchain technology, there are not so many developers available who have specialized expertise in blockchain technology. Hence, the lack of developers is a hindrance to developing anything on the blockchain.

Immutable

In immutable, we cannot make any modifications to any of the records. It is very helpful if you want to keep the integrity of a record and make sure that nobody ever tampers with it. But immutability also has a drawback.
We can understand this, in the case, when you want to make any revisions, or want to go back and make any reversals. For example, you have processed payment and need to go back and make an amendment to change that payment.

Key Management

As we know, blockchain is built on cryptography, which implies that there are different keys, such as public keys and private keys. When you are dealing with a private key, then you are also running the risk that somebody may lose access to your private key. It happens a lot in the early days when bitcoin wasn’t worth that much. People would just collect a lot of bitcoin, and then suddenly forgot what the key was, and those may be worth millions of dollars today.

Scalability

Blockchain like bitcoin has consensus mechanisms which require every participating node to verify the transaction. It limits the number of transactions a blockchain network can process. So bitcoin was not developed to do the large scale volumes of transactions that many of the other institutions are doing. Currently, bitcoin can process a maximum of seven transactions per second.

Consensus Mechanism

In the blockchain, we know that a block can be created in every 10 minutes. It is because every transaction made must ensure that every block in the blockchain network must reach a common consensus. Depending on the network size and the number of blocks or nodes involved in a blockchain, the back-and-forth communications involved to attain a consensus can consume a considerable amount of time and resources.
So, this brings us to the end of blog. This Tecklearn ‘Deep Dive into BlockChain’ blog helps you with commonly asked questions if you are looking out for a job in BlockChain or Ethereum. If you wish to learn BlockChain or Ethereum and build a career in BlockChain domain, then check out our interactive, Blockchain and Ethereum Developer Training, that comes with 24*7 support to guide you throughout your learning period. Please find the link for course details:

https://www.tecklearn.com/course/blockchain-and-ethereum-certification-training/

Blockchain and Ethereum Developer Training

About the Course

Tecklearn’s Blockchain and Ethereum Certification Training course in the blockchain technology that covers essential concepts like Blockchain programming, Ethereum, Solidity, Digital ledger types, Smart Contracts, Multichain, Bitcoin mining, Cryptocurrency, etc. The course provides an overview of the structure and mechanism of Blockchain. You will learn about the Ethereum ecosystem, how smart contracts are developed using Solidity and how to deploy a business network using Hyperledger Compose.

Why Should you take BlockChain and Ethereum Certification Training?

• The average salary of a Blockchain Ethereum Developer is $158,860 per annum – Paysa.com.
• Blockchain tech has gone far beyond its beginnings in banking and cryptocurrency: In 2019, businesses are expected to spend $2.9B on the technology.
• IBM reports that Blockchain markets are headed to $60 Billion worldwide by 2024.

What you will Learn in this Course?

Introduction and origin of Blockchain

• How does our current financial system work?
• What can be the possible solution
• What is a distributed system
• What is Blockchain
• How does a Blockchain work
• Components of Blockchain
• Business network
• Consensus, Provenances, immutability and finality

Cryptocurrency and Blockchain

• Distributed system
• Distributed Ledger technology
• Global Payments
• Why BlockChain
• BlockChain and use case needs
• Requirements of blockchain for business
• BlockChain benefits
• Types of BlockChain
• Hands on

Bitcoin Platform

• What is Bitcoin?
• Why use Bitcoins?
• Bitcoin Ecosystem
• Structure of a Bitcoin Transaction
• Merkel Trees
• Scripting language in Bitcoin
• Applications of Bitcoin script
• Nodes in a Bitcoin Network
• Bitcoin Economics
• What is Bitcoin Mining?
• Types of Mining
• Mining and Consensus
• Hands On

Introduction to Ethereum

• What is Ethereum?
• Ethereum Layers
• Introducing Smart Contracts
• Cryptocurrency in Ethereum
• Mining in Ethereum
• Consensus Mechanism
• Platform Functions in Ethereum
• Technologies that support Ethereum
• Ethereum Programming Language
• Components for the development of Ethereum DApps
• Editors and tools
• Frontend Development
• Ethereum Test Networks
• ERC Tokens
• Hands On

Solidity

• Introducing Solidity
• Sample Code, Layout of Source File
• Structure of a Contract
• State Variables, Functions Types, Reference Types
• Special Variables and Functions, Expressions and Control Structures
• Function Calls, Error Handling
• Visibility for Functions and State Variables
• Inheritance, Constructors
• Importing Smart Contracts
• Gas Limit and Loops
• Sending and Receiving Ether
• Recommendations
• Contract ABI
• Setting up the development environment and Deploying DApp
• Hands On

Hyperledger

• Introduction to Hyperledger
• Hyperledger architecture
• Hyperledger Fabric V1 Architecture
• Consensus
• Hyperledger API
• Hyperledger Application Model
• Hyperledger project and tools
• Network Topology
• Exploring Hyperledger frameworks
• Business Network Deployment on Hyperledger Composer Playground
• Sample Transaction
• Service invoices
• Hands On

Hyperledger Composer

• Development Environment using Composer
• Developing business networks
• Testing business networks
• Introduction to Hyperledger Fabric
• Hyperledger Fabric Model
• Ways to create Hyperledger Fabric Blockchain Network
• Hands On

Create and Deploy Your Private Blockchain On Multichain

• What Is MultiChain
• MultiChain Privacy and Permissions
• Mining in MultiChain
• Multiple configurable Blockchains using MultiChain
• Setting up a Private Blockchain
• Hands On

Blockchain Use Cases

• Potential use cases in Blockchain
• BlockChain project

Got a question for us? Please mention it in the comments section and we will get back to you.

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