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December 29, 2021

Blockchain Basics


#Blockchain = #cryptography powered token-based environment for #Anonymous #decentralized environment to avoid visibility of real #Beneficiaries


Key Notes
  • Blockchain is a decentralized ledger used to securely exchange digital currency
  • Distributed database that maintains continuously growing tamper-proof data structure
Algos
  • The Blockchain metadata is stored in Google’s LevelDB by Bitcoin Core client
  • The individual blocks are identified by a hash which is generated using secure hash algorithm (SHA-256) 
  • Decentralized and no central authority has full control
  • Transaction is broadcasted over Bitcoin network to inform everyone that new owner of these coins
Business Process
  • Buy Bitcoins
  • Trade based on bitcoins
  • Avoid visibility to institutions
  • Set your own values for bitcoins
  • Finally based on current rates reverse back or buy something property / material
  • Avoid any tracking / Value of transaction
How it may work
  • Distributed databases
  • Broadcasted to all nodes
  • Decentralized
  • Everyone has common access across ledgers  which are consistemt
Security
  • Once we get into the system / datanases
  • Keys to decrypt
  • Every transaction may have its own hashkeys / token
  • Hard to crack without getting complete details as token may play a key role to deter breaking into ledgers

Key Notes
  • peer-to-peer version of electronic cash without going through financial institution.

  • DCS (Decentralization, Consistency, Scalability) theorem for the blockchain systems
  • Consistency - Any read in the distributed system gives the latest write on the nodes.
  • Availability - A Client always receives a response at any point of time irrespective of whether the read is the latest write.
  • Partition Tolerance - In case of partition between nodes in the distributed system, the system should still be functioning.
  • Decentralization - There is no trusted entity controlling the network, hence no single point of failure
  • Consistency - The blockchain nodes will read the same data at the same time.
  • Scalability - The performance of blockchain should increase with the increase in the number of peers
Blockchain and database both can achieve many functionalities and features by coping with each other.

More Reads
Papers - Dec30th

Keep Exploring!!!

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