Blockchain
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A tech that has ability to change the face of the world.
Definition
The technology that tells how to transfer money or assets. The bitcoin is one of the application of blockchain. The blockchain is the underlying internet transportation technique.
problems associated
1. Double spend problem
Similarly, to the way when we transfer some files over the internet. It can be copied multiple times and this may not be the case for money. It cannot be duplicated as it can be spend only once.
IN 2008 “satoshi nakamoto” has the paper published for digitial processing which enforces that the money is only spend once.
2. Byzantine fault tolerance
over the years the systems have grown its applications and the fundamental problem that is to be focused by each and everyone is the fault in the system that arises due to the software nodes. There may be rise of failure while transmitting the messages over different systems, different nodes may act differently. This is the problem called as Byzantine fault tolerance.
Background of blockchain
** smart networks
In the previous era we have a single network to transfer the data from one node to another. now to transfer the secure information we make use of smart networks. It adds more complexity to the existing pipeline and uses the algorithmic methods to check the transfer of the assets across the internet.
need of blockchain
It is the decentralized financial network. similar to the way how the cell phones were replaced with the rise of new technology now the long tail of financial services that needs to be digitalized sooner or later.
How the blockchain works ? ( in crypto basis)
The software wallets don’t hold the money instead they hold the keys. The wallet has the public and private keys that allows to access the coin.
when we place a wallet in our system whether its mobile phone or other systems it initializes the public — private key pair. Their basic structure is PKE infrastructure. What that means is the public key encryption infrastructure. This means that there are pair of 32 alphanumeric characters. Its the user’s bitcoin address. There also exists the private key which is hidden from the user.
when spending the bitcoin
the user scan the QR Code for the bitcoin address of the other party or manually and submit the number of coins and submit and the user submit. The software checks if it is valid number and address that the user have. Then the balance is transferred to the other user. the logs are maintained by the so called sheet that is in the internet. The data can be checked if the user has valid 32 character bitcoin address. But the user of allocated coin is unknown. thus is called as pseudo- synonymous (not completely anon.)
