Blockchain has proven its value to most industries. Blockchain technology can help many businesses improve digital transactions, but not many people understand what they are. The following are frequently asked questions about blockchain.
1. What is blockchain?
Blockchain is a distributed ledger that uses digital signatures and cryptographic hash functions to provide a record of secure transactions that cannot be changed.
The advantage of blockchain is that it can provide an immutable ledger, providing transparency and integrity, tightly tied using cryptography. As such, it is very useful for anti-fraud purposes while ensuring business continuity.
It can be understood as an infrastructure on which many different applications can be built in different areas, including finance and payment, supply chain, inventory management, and asset tracking, identity management, and corporate governance, ...
2. Are blockchain and bitcoin the same?
Incorrect. According to ABI Research, although all bitcoins are blockchain, not all blockchains are bitcoin. The most obvious distinction is to understand that blockchain is the basic technology that Bitcoin uses. Bitcoin was the first and most successful company to implement blockchain technology.
3. What makes blockchain safe?
According to ABI Research, Blockchain has three outstanding features that are the basis for the development and popularity of Blockchain:
- Immutability (data cannot be changed after it is created),
- Transparency (all participants can see what is happening)
- Autonomy (self-governing).
This means no one can change the record without the consent of the other parties.
4. Is Blockchain 100% secure?
Blockchain technology is still vulnerable to unauthorized transactions. However, these attacks will require a large number of computers on the network involved, with bitcoin, which will be almost impossible to achieve.
5. To what extent is the effect of Blockchain on the development of the world?
Blockchain technology will continue to evolve beyond the scope of digital payments. For example, this technology is being used for smart contracts, which are located on a blockchain and are written in code, which can free up funds, transmit information, record and embed data, and purchase goods - all both in an independent way. This can have a great impact on many other areas such as elections, governance, asset tracking, supply chain tracking, M2M transactions ...
Technology is currently being used by IBM to make the operation of an international bank simple and cost-effective.
6. Is it possible to remove one or more blocks from the networks in Blockchain?
Yes, it could happen. There are times when only a specific portion of this online ledger is to be considered. With the help of default filters and options, this can be done without making a lot of effort.
7. What are some popular platforms for developing blockchain applications?
After bitcoin, various blockchain platforms started coming up. Ethereum is one of the most popular public platforms for building Blockchain applications.
Besides, there is a Hyperledger community to build enterprise-based solutions. Also, EOS, Qtum, IOTA are some of the widely used platforms for building Blockchain applications.
8. Bitcoin-based on public/private/permissioned blockchain?
Bitcoin is based on public blockchain
9. What are the types of Blockchains?
Blockchains have three types:
- Public
- Private
- Consortium
10. In the blockchain, How are blocks linked?
Backward to the previous block
11. How can Blockchain be stored?
Blockchain can be stored as which of the following: A flat file or A Database
12. What are the most popular consensus algorithms?
The most popular consensus algorithms are:
- PBFT
- Proof-of-work
- Proof-of-stake
- Delegated proof-of-stake
- Proof-of-elapsed time
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Learn more: All terms in Blockchain technology that you need to know
