Blockchain Basics in Cryptocurrency – Session 3

Blockchain basics deal with the definition of the blockchain technology to begin with and how the technology is implemented in Crypto Blockchain is a decentralized database that is shared among computer network nodes. Transactional data from numerous sources may be readily collected, integrated, and shared using blockchain cloud services. Data is divided into common blocks linked together using cryptographic hashes as unique IDs. Data integrity is ensured via Blockchain, which uses a single source of truth to eliminate data duplication and increase security.

Fraud and data tampering is prevented in a blockchain system since data can’t be changed without the permission of the nodes of the parties. Blockchain basics deal with the different types of network, mention below:

Blockchain basics
Image Source Google

Why Do We Need Different Types of Blockchain?

In Blockchain basics, we learn how to carry out transactions or data transfers across a secure network. The way people use Blockchain and distributed ledger technologies or networks, on the other hand, differs from context to situation. For example, Bitcoin is a digital cryptocurrency transacted using Blockchain and DLT technology. Because anyone from anywhere in the world can become a node, verify other nodes, and exchange bitcoins, this form of a blockchain network is a public network.

Similar to these instances, the blockchain network can be set up in various ways based on usage and requirements.

Blockchain basics: Public Blockchain

Blockchain basics covers the definition and the features of Public Blockchain which happens to be a permissionless distributed ledger on which anybody can join and conduct transactions. It is a non-restrictive form of the ledger in which each peer has a copy. This also means that anyone with an internet connection can access the public Blockchain. This user has access to historical and contemporary records and the ability to perform mining operations. These complex computations must be performed to verify transactions and add them to the ledger. On the blockchain network, no valid record or transaction may be altered. Because the source code is usually open, anybody can check the transactions, uncover problems, and suggest fixes.

Advantages of Public Blockchain

Trustable: Public Blockchain nodes do not need to know or trust each other because the proof-of-work procedure ensures no fraudulent transactions.

Secure: A public network can have as many participants or nodes as it wants, making it a secure network. The higher the network’s size, the more records are distributed, and the more difficult it is for hackers to hack the entire network.

Open and Transparent: The data on a public blockchain is transparent to all member nodes. Every authorized node has a copy of the blockchain records or digital ledger.

Disadvantages of Public Blockchain

Lower TPS: The number of transactions per second in a public blockchain is extremely low. This is because it is a large network with many nodes which take time to verify a transaction and do proof-of-work.

Scalability Issues: Its transactions are processed and completed slowly. This harms scalability. Because the more we try to expand the network’s size, the slower it will become.

High Energy Consumption: The proof-of-work device is expensive and requires lots of energy. Technology will undoubtedly need to develop energy-efficient consensus methods.

In the next session of Blockchain basics, we deal with the other types of Blockchain networks and it’s characteristics.


Suggested Crypto Topic

Stock vs Crypto – Learning the basics of Crypto Session 2


If you like our blog and posts, please share them with your friends and spread the word. Please feel free to share your suggestions and feedback in our contact and help us to improve at this.

Latest Posts

Follows us on Social Media

[FaceBook]  [Twitter]  [Pintrest]  [InstaPaper]