Blockchain Training in Porur

Is Blockchain  internet transactions ?

• Blockchains are decentralized database systems in the form of a continuous expandable sequence of data blocks, which comprehensibly record internet transactions in chronological order.
• Picture the blocks of a blockchain as an unalterable sequence of data strings. This connection is made possible by means of cryptographic methods, which ensure that new data blocks come together in such a way that old blocks are neither substituted nor changed.
• As time goes by, a blockchain becomes increasingly longer and any modification of saved data is not possible.
• Blockchain technology is an alternative option for the so-called “Trusted Third Party”(TTP). As a result, transactions in blockchain networks are not verified by third parties, but rather by means of a jointly run, unforgeable accounting system called Distributed Ledger Technology (DLT).
• Nowadays, blockchains are at our disposal in the same way as Bitcoin or Ethereum, all of which are used to assist online transactions, just like the one between Paul and Hugo. To avail of them, the only remaining step for our protagonists is to join the online community in question. Generally speaking, it suffices for Paul and Hugo to download and install appropriate client software, which would interlink their computers with a simple blockchain network.

Blockchain development over years

• Before the introduction of blockchain technology, the internet’s intermediating services were primarily based on the trust of both parties. If a client wants to acquire a product by an online vendor, both parties must form a relationship of trust with a centralized intermediary entity, namely an online payment service provider or a bank. The underlying assumption is that these will carry out transactions in the desired way.
• The structure in question becomes a problematic concept when the intermediary entity takes advantage of its central position during the transactional procedure by turning it into a position of power, thereby only representing its own interests and attempting to seize full control. Such an incident occurred in 2010, when PayPal, the most common of all payment services, suspended the account of the whistle-blowing platform WikiLeaks.
• Over the past years, in the attempt to turn the internet into a more democratic system, the cryptographic community has been consistently working on networks based on the peer-to-peer (P2P) principle, which would consequently facilitate transactions without the need for the presence of any intermediaries.
• BitTorrent, a collaborative communication protocol for P2P file sharing, makes it possible for such transactions to take place without any central server and enables a worldwide data exchange by means of anonymous usernames.
• However, anonymity creates mistrust among those involved in online asset exchanges. To solve this problem, former professor of law and computer scientist Nick Szabo brought blockchain technology into the conversation in 1997. According to him, contracts are based not only on mutual trust between both parties involved in a transaction, but also on their acknowledgement of corresponding legal frameworks.
• Problems would nevertheless arise if the two people in question either did not share a mutual understanding, had diverging contracts, or if one of the members accused the other of a breach of contract. According to Szabo, future “Smart Contract” forms should be software-based and algorithmically determine whether the parties involved meet their contract requirements or breach any regulations.
• This approach has been taken up in established technologies such as P2P, hashing, and encryption to introduce a cryptographic method, with the aid of which he was able to interlink datasets in an irreversible and unforgeable way.
• The first application of blockchain technology – Bitcoin, a P2P cryptocurrency – comes from Nakatomo’s idea, which consequently resulted in other inventions such as Ethereum, Ripple, TradeBlock, and Dash.

4 main factors that highlight the Blockchain advantage are:

• Lack of dependence on a centralised authority
• Transparency in transactions
• Protection against data tampering
• Hackproof data due to encryption

Some have even gone to the extent of saying that Blockchain is future. With a technology as promising as this, many aspirants have set their eyes upon Blockchain as the next career move.