Thread by @langford_dev

What is Blockchain? 🔐

Understand the ins and outs of Blockchain

- Types
- How it works
- Why it's considered secure
- Terms
- How it encrypts data
- Everything...

Le Thread🧵👇🏽

Blockchain is a system of recording information in a way that makes it impossible to change or hack

It is basically a group/network of computers sharing a public database containing encrypted data

The blockchain is a ledger that keeps records of every transaction on the network

Types of Blockchain

- Private blockchains
- Consortium blockchains
- Public blockchains
- Hybrid blockchains

🔸Public blockchains

This type of blockchain is completely unrestricted.

Anyone with an Internet connection can send transactions and serve as a validator (i.e., to participate in the execution of a consensus protocol)

Examples:
- Bitcoin (BTC)
- Ethereum (ETH)

Consensus Protocol

Is guaranteeing the stable operation of blockchain systems

🔸Private blockchains

This is the direct opposite to public blockchain.

A user will need access or permission before they can interact with this type of blockchain

Examples:
- Ripple (XRP)
- Hyperledger

🔸Hybrid blockchains

It is a blockchain with a combination of centralized and decentralized features

🔸Consortium blockchains

A consortium blockchain is a blockchain that is governed by numerous organizations rather than a single one.

Examples:
- Hyperledger
- Corda- Hyperledger
- Quorum

How does blockchain work?🤔💭

When data is saved on the network, it’s duplicated and distributed across the network of computers.

Before the data is added to the chain, it is asymmetrically encrypted using a private & a public key

This encrypted data is then added to the chain

How does blockchain encrypt data?🤔💭

Blockchain uses asymmetric cryptography.

Asymmetric cryptography uses a public and a private key for hashing data, identity management, and transaction authentication

This makes it one of the safest ways of storing data and records.

Why is it considered safe?🤔💭

Blockchain is not immune to hacking but it is impossible to change or remove data saved on it.

Its a network of 1000s of computers, and trying to hack that number of computers concurrently is almost impossible, thus, making it safe & trustworthy

Terms used in the blockchain community

- Centralisation ☂️
- Decentralisation 👥
- Cryptography🔐

🔸Centralisation
It's a state where data or activity is under the control of a single authority

Issues associated:

- Traceability
- High costs due to intermediary services
- Data leaks
- Hack attacks

🔸Decentralisation

It's a state where data or activity is distributed across several local entities rather than a single authority.

If a company decides to open other branches in other locations. In a decentralized model, these different branches can operate independently

Fun fact: 🍔 McDonald’s operates in a decentralised system

🔸Cryptography

The study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents

🔸Examples of blockchain networks

- Bitcoin
- Ethereum
- Litecoin
- Corda
- Multichain
- Energy Web Foundation

🔸Advantages of the blockchain technology

- It is secure
- Trustworthy
- Decentralised
- Transparent
- Fast and efficient

Since there are no intermediary services, reading and adding data to a blockchain network is faster and efficient comparing it to a centralized model

🔸Real-world applications of blockchain

- Anonymous exchange of digital assets (NFTs & cryptocurrencies)
- NFT marketplaces
- Cross-border payments
- Personal identity security
- Securely store valuable records
- Tracking music royalties
- Anti-money laundering system

Thanks for reading!

I post daily Web3, Software & Blockchain development content 👋

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