Imagine
doing a transaction without carrying any money in cash. Without interfering
with third-party applications or banks.
That is what
blockchain can do actually. Blockchain is a revolutionary technology that
intends to provide safe and secure transactions by using digital
cryptocurrencies that cannot be manipulated by anyone. Blockchain is a
collection of blocks that record information transactions like who made
transactions to whom.
In a blockchain
when one participant has to perform a transaction with another one. The process
of enacting and ending the process is known as blockchain.
There are
five steps to make a transaction in blockchain which are mentioned below.
1 ) If
participant A has to give 20 bitcoins to D then A will initiate.
2 )
Transactions are broadcast to all other participants with that process other participants
will come to know that A and D will have to perform a transaction.
3 ) As all
participants already know about transection here all participants check the
transection. Checking transactions in the sense that they see the note which is
doing the transaction. Is it an authorized note or not? They also see if the
node is doing a transaction of 20 bitcoins. Whether that node has enough coins
for a transaction or not.
Till now if
all things are perfect then the rest of the participants give approval to
transection. Now a question arises is it necessary to get approval from all
participants? The answer is not at all. If more than 50% of participants
approve the transaction then it can go for further process. Even if 51% of
participants approve it'll go be enough.
4 ) The
transaction that is to be done is included in the block along with other
transactions but in a time-stamped and chronological manner.
5 ) Block is
added to the blockchain and the transaction becomes a permanent transaction.
After that, it is impossible to change or delete the transaction.
Types of
blockchain
1 ) Public
Blockchain
2 ) Private
Blockchain
3 )
Consortium or Federate Blockchain
Public
blockchain
A public blockchain is a nonrestrictive and
permissionless blockchain. It can be used by any user and can complete
transactions. That is also a completely decentralized platform that gives
permission to all types of users to be included in it. Currently, public
blockchain is used for cryptocurrency transactions and mining. Bitcoin and
Ethereum are part of this blockchain.
Advantages
and disadvantages of public blockchain
Advantages
1 ) The members
who are part of this network. Each and every member has excess to data. That’s
why transparency is maintained.
2 ) This is
a public network everyone can join it easily.
Disadvantages
1 ) Because
of having more traffic on a public blockchain. It works slowly even sometimes
taking hours to complete a transaction.
2 ) Public
blockchain faces a scalability issue. It has a problem while being scaled.
Private
Blockchain
A private
blockchain is also known as a permission blockchain. This is a secure network and
is only used by those who are permitted. This type of blockchain is a
centralized network. This blockchain is suitable for those organizations that
are looking for selected participants only. Hyperlegic fabric and Corda are included
in this blockchain.
Advantages
and disadvantages
Advantages
1 ) Private
blockchains are faster than public blockchains. Because in this blockchain
users are limited.
2 ) This
blockchain has fewer scalability issues again because of the same reason that
it has limited participants.
Disadvantages
1 ) Private
blockchain is usually centralized but the main concept of blockchain is that it
should be decentralized.
Consortium
blockchain
This
blockchain is used by those organizations that are required to have a
blockchain which includes some public blockchain properties as well as some
private blockchain properties. Consortium blockchain contains both public and
private blockchain properties. Consortium contains a public blockchain this
property that anyone can take part in this blockchain and perform transactions.
It contains
the property of a private blockchain where even everyone can take part and
complete the transaction but there are some chosen notes that initiate to
verify the transaction. Macropolo is part of this blockchain.
Advantages
and disadvantages
Advantages
It has very
less stability issues and is secure as well as efficient.
Disadvantages
As
considered public and private blockchains consortiums are not that much
anonymous.
Future of
blockchain
Blockchain
has risen quite nicely in the market and the coming future of blockchain looks
promising and bright. According to Garter blockchain is expected to surge to
over 360 billion by 2026. This state tells us all about the future of
blockchain itself.
Also read:
3 Comments
Such a informative article sir😍
ReplyDeleteThanks for your kind words
ReplyDeleteMashallah Allah bless you my heart
ReplyDelete