There is a strong need for software engineers in the field of blockchain technology as blockchain platforms expand quickly in the technological world. More than 10 years ago we witnessed the birth of Bitcoin with its exceptional functionalities using the blockchain.
After several years of evolution, some blockchain projects have already captivated people and companies around the world. In today's society, one can find many decentralized software platforms for trading and have access to many features through accessible possibilities.
However, many people consider the increased availability of different blockchain ideas to be a positive feature. Conversely, some business owners may be receptive to the prospect of switching to the new trending blockchain projects.
Therefore, as a developer, if you don't understand new blockchain projects, you are likely to be left behind.
Basic services that are crucial to the financial services industry can be improved by blockchain technology. At its core, it is based on a digitalized, decentralized, and distributed ledger technology model. Blockchain technology creates a viable decentralized record of transactions, the distributed ledger, which can replace a single master database.
Blockchain could be used to keep an immutable record of all transactions back to the point of origin, making it an amazing technology for creating business digital solutions. This concept, which is significant in trade finance, is also known as provenance. This enables financial organisations to examine each stage of a transaction and lower the risk of fraud.
Blockchain applications also provide a much better means of creating and proving identity for modern systems. Additionally, blockchain technology greatly simplifies the direct transfer of business assets and increases confidence in their provenance.
This can be achieved by providing special identities for attached assets with an inviolable record of their ownership. As a result, there is a huge market for additional finance services based on the exchange of real goods.
Blockchain and Bitcoin
Some people consider bitcoin and blockchain to be the same Cryptocurrency. Blockchain is the underlying technology of bitcoin. Both are closely related but are not the same. A digital currency known as Bitcoin was first launched in 2008 under the pseudonym Satoshi Nakamoto.
The mechanism utilised to maintain records was based on blockchain technology. Enabling this new digital money since there was no involvement from a bank, the government, or the police in the transactions. However, Bitcoin can be considered as the first use case to take advantage of blockchain technology.
Thus, the confusion between the two usually arises because they were introduced into the real world simultaneously. However, since the blockchain network was introduced, it has been extrapolated as a ledger solution in many other industries related to non-currency digital assets.
These are areas such as healthcare with medical records, trade finance, the owner of a bill or purchase order and insurance, and those who have title to a house or car.
Data Stored in a Blockchain is Public
While some public blockchains are accessible to everyone, others are exclusively privately accessible to selected people. The use case will determine the type of blockchain that is needed.
The main types of blockchain technology are the following Public, Private and Consortium Blockchains.
Public Blockchains
Users can join the blockchain networks by using the public blockchain. This means that users can store, receive and send data after downloading the necessary software application on their mobile device.
Users may now access and write the data that is stored on the blockchain network, though. This is a completely decentralized blockchain, and access to read and write data on the blockchain technology is divided equally among all connected users.
Users come to a consensus before storing any data in the database. Bitcoin is a well-known instance of this kind of blockchain among digital currencies. Digital currency allows users to use a platform to transact directly with each other.
Private Blockchains
An organization has control over who is allowed to write, send, and receive data on a private blockchain. This kind of blockchain is often utilised inside of a company with a small number of users who may access it and conduct transactions in accordance with its rules.
Blockchain Consortium
A permissioned blockchain is another name for a consortium blockchain. It is seen as a hybrid model that combines the high trust single entity model of private blockchains with the low trust model provided by public blockchains. The characteristics of a consortium blockchain set it apart from other kinds of blockchains.
Instead of allowing users to participate in verifying the transaction process or giving a single company access for full control, a consortium blockchain selects only a few parties who are predetermined.
With the use of the consortium's blockchain technology, a select few users are able to take part in the consensus process.
There is only one blockchain
Blockchain is often used to refer to a ledger technology rather than a specific commodity, solution, or service. Blockchain will have the same denominators, such as being distributed and devoid of cryptography and having a consensus mechanism.
Many blockchains present themselves as public, private, or consortium. Additionally, there are several protocols that may be classed as distributed ledger technologies and are referred to as blockchains. Some examples are Ethereum, IBM, Ripple, Corda, and Fabric.
