Understanding Blockchain was popularized by a person using the name Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin, based on work by Stuart Haber, W. Scott Stornetta, and Dave Bayer.
The character Satoshi Nakamoto continues mysteriously to date. The blockchain discovery for bitcoin made it the first digital currency to solve the double-spending problem without needing a trustworthy authority or central power.
The bitcoin design has encouraged other applications and blockchains that are readable by the public and are extensively used by cryptocurrencies.
What is the concept of Blockchain?
Blockchain looks complicated, and it can be, but its core concept is quite simple. A blockchain is a type of database, and to be able to understand Blockchain helps first to understand what does a database mean.
A database is a group of information that is stored electronically on a computer system. In databases, information, or data, is typically structured in table format to allow for easier searching and filtering for specific details.
What is the distinction between someone using a spreadsheet to store information rather than a database?
Spreadsheets are designed for one person, or a small group of people, to store and access limited amounts of information.
In contrast, a database is intended to house significantly more significant pieces of data that can be retrieved, filtered, and swayed swiftly and quickly by several users simultaneously.
Large databases accomplish this by holding data on servers that are created by a robust computer system.
These servers can occasionally be built using hundreds or thousands of computers to have the computational power and the storage capacity required for several users to access the database simultaneously.
While a spreadsheet or database can be made accessible to any number of people, it is often owned by a business and managed by an appointed individual who has complete control over how it works and its data.
Why Blockchain is important
Business runs on information, and the quicker it’s obtained and the more precise it is,the better it is.
It is ideal for providing that information because it provides immediate, shared, and utterly transparent information stored on an immutable ledger that can be accessed only by a permission network group.
Blockchain systems can track orders, payments, accounts, production and much more. And because members share a specific view of the truth, you can see all details of an operation end-to-end, giving you greater confidence, as well as new efficiencies and opportunities.
Various Types of Blockchain
Public blockchain Networks – a type of Blockchain that anyone can join and engage in the system. One example is Bitcoin.
Disadvantages might include substantial computational power required, little or no privacy for transactions, and weak security, which are essential considerations for enterprise use cases of Blockchain.
Private blockchain Networks: It is a decentralized peer-to-peer network like a public blockchain system. One organization governs the network, controlling who can participate, executing a consensus protocol, and maintaining the authoritative record.
Varying on the use case, this can significantly boost confidence and trust between the members. Additionally, a private blockchain can be run behind a business firewall and even be hosted on-premises.
Authorized blockchain Networks: Businesses who set up a private blockchain will generally set up an authorized blockchain system.
It is crucial to note that public blockchain networks can also be approved, limiting who can participate in the web and specific operations. Members need to obtain an invitation or permission to join.
Consortium blockchain Networks – Multiple organizations can share the responsibilities of maintaining a blockchain, and these pre-selected organizations determine who may submit transactions or access the data.
A consortium blockchain is ideal for business when all participants need to be authorized and shared responsibility for the Blockchain.
