Public Blockchain Explained
Introduction:
Blockchain Technology is one of the most interesting emerging technological trends at present times. It is a distributed and encrypted technology that has the ability to solve the problem related to “trust” and “security” in online processes. Although people recognize Blockchain through Bitcoin and Ethereum (cryptocurrencies), the technology has much more to offer.
How it works:
Blockchain consists of the following main components:
- Blocks – The basic content of all block are data, nonce and hash. The data is the block data. The nonce is a 32 bit whole number, generated randomly when the block is created. With help of this nonce block header hash is generate. This hash must start with a large number of zeros. At the time of genesis of block creation, nonce generates the hash. The data is considered verified and signed and it is combined with the nonce and hash.
- Nodes – Blockchain network is decentralized in nature. All the nodes have their copy of the ledger. They all must approve any newly mined block in order to update the chain. Each node is having a unique alphanumeric identification number that shows their transactions.
- Miners - In Blockchain Technology miners are responsible for creation of new blocks. They are members of the network. They use a mining software to solve a complicated math problem to find the nonce for generation of the hash. Once the block is mined, no change is possible. In case of changes, re-mining is required for that block and all the blocks after that. When a block is successfully mined, the change is accepted by all of the nodes on the network and the miner is rewarded financially.
Current Status:
The “smart contracts” has huge scope in the fields of logistics, supply chain, identity management etc. It can be used to manage and improve the security and integrity aspect of any system.
One major drawback of the Blockchain Technology is its use of energy. In an article by Steven Huckle in 2016 named Socialism and Blockchain we get an estimate that bitcoin mining’s annual energy consumption is 3.38 Terawatt Hours (TWH). The energy consumption of the total bitcoin network is higher than that of Ireland and the annual consumption of this currency is rising in an exponential manner. Due to the different types of consensus mechanism used like “proof-of-work” (PoW), high levels of carbon emission happen.
There can be different ways to approach the problem. One is to use a different consensus mechanism like “proof-of-stake” (PoS). Ethereum has already shifted to PoS to address the issue. To reduce energy consumption, Elon Musk, CEO of Tesla decided not to accept payment in Bitcoins for his cars in early 2021. In 2022 we can expect to see more such initiatives in order to turn Blockchain “green” and environment friendly.
Use Cases:
Blockchain has various uses across different sectors like supply chain, education etc. Spotify, the world’s largest music streaming service provider acquired blockchain start-up Mediachain Labs to develop solutions via a decentralized database to manage communication with artists and the licenses, agreements related to the tracks on Spotify’s service in a better way. Walmart which is an American multinational retail corporation that operates a chain of hypermarkets also uses Blockchain Technology to efficiently provide a system for food traceability. All entities who handle a food item are represented as a node. Hence each food can be traced back and in case of any complaint it helps to locate the point where it went wrong. This makes the whole supply process technology easy and transparent.
In India, several state governments are going for Blockchain enabled solutions. Chhattisgarh and Assam governments are working on various use cases like land registration, court case registry etc.
Skillset required for Learner:
Blockchain technology is still fairly new, but its popularity is rising with every year. The Blockchain Technology course prepares you for one of the hottest industries in the technical space right now. Anybody who is interested in Programming and has basic understanding of Object oriented concepts, cryptography, hashing and networking can go for this course. After going through this course participant is ready to embark on any higher Level course intended for Blockchain/Ethereum Smart Contracts /Hyperledger Fabric.
