blockchain technology provides a method of recording and transferring data in a transparent, trusted, and provable way.
It allows individuals and companies to engage in a transfer system that is fully transparent, democratic, and secure.
Most importantly, it allows trust-less storage and transactions, removing the need for intermediaries.
examples that help realize the impact of these benefits: Visa monetizes trust as the intermediary between merchants and customers. Amazon monetizes trust as the intermediary between sellers and customers. Uber monetizes trust as the intermediary between drivers and customers. every single example requires trusting an intermediary with your information. Having a central point of data collection poses a security risk, your information no longer belongs to you, a company now owns it.
What they do with it is their prerogative.
The adoption of blockchain technology will remove the need for third parties and will allow trust-less peer-to-peer transactions.
In the worst-case scenario, it will reduce the costs for companies and the fees for the end-users of a trust-based service.
In the best scenario, it will completely remove the need for intermediaries in most industries. industries
It will make the monetary system more transparent for the “banked” people as well. Most banks are also developing their own blockchain solutions as it will make their operations faster, more secure and efficient.
Cloud storage systems, as we currently know them, rely on large centralized databases. This leaves data vulnerable to privacy breaches and the potential for environmental catastrophe.
Blockchain makes data safer by removing failure points. It will also create even more cost-effective storage options.
blockchain in layers
application layer
Interface through which the user interacts with the Blockchain. It deals with User Interface design and Business Logic communicating with the blockchain decentralized application communicating with the blockchain. Some dApps provide a desktop browser like user-Interface. Some of the commonly used Dapps include Metamask, a crypto wallet.
type of SaaS (software as a service) hosting solution that allows applications to be available from a remote cloud infrastructure
and to be accessed by users globally through the internet.
services layer
services provided to the application layer which enable its proper functioning and connection with the technology.
mechanism used for receiving updated data information from credible sources. computing done outside the blockchain application stack. comparatively less costly and time-saving than on- chain computation. two-way pathway between two peers who want to communicate with each other through the means of transaction.
Every user on the channel will have to sign their transactions with their private key to ensure they are fully authorized and coming from the real user.
form of data feeds used in the blockchain network to support smart contracts. act as an agent, who finds out information about the real-world situation and carries those information to the smart contracts.
based on the agreement of the parties. network and protocol layer
defines the network participation requirement, base protocols, Virtual Machines and the method of consensus being used in the blockchain.
Consensus Mechanisms (POW, POS, PO-AI) blockchains use consensus algorithms to ensure that the nodes come to an agreement. consensus problem needs to be solved to add new blocks to the blockchain. The Proof- Of-Work consensus mechanism which supports Bitcoin has been under criticism for its energy requirements.
Bitcoin consumes an estimated 58.93 TWh per year,
more than Switzerland which consumes 58.46 TWh per year.
other common consensus mechanisms are Proof-Of-Stake, Delegated-Proof-Of- Stake and Proof-Of-A.I (Proof-Of- Learning) unique kind of emerging mechanism that allows tokens or other assets to go from the mother blockchain to a separate blockchain and then back again. Access Control (Permissioned / Permissionless) runtime environments for smart contracts so that users can benefit from the service. Blockchain as a decentralized computer concept has been validated by Ethereum. The mechanism by which the code is to be executed is governed by different protocols which can be chosen based on business and feature requirements of the blockchain.
The virtual machines also make sure that the Denial-Of-Service kind of cyber-attacks cannot be done on the blockchain and everything keeps on running smoothly. Ethereum Virtual Machine (EVM), Direct LLVM exposure, Web Assembly Virtual Machine (WASM) are some of the virtual machines being used by current blockchains. network and protocol suite used for decentralized data distribution. created to aid in general purpose transportation between two peers. currently being used by Ethereum. method enables a user to create their custom protocol to better adjust to their needs. infrastructure layer
storage, computing, network and mining services required by the blockchain. concept where multiple computers work on a single problem to solve it. same process as mining cryptocurrencies or bitcoin. all the miners can work like a unit and solve the problem and then get rewarded after that.
makes workloads more scalable than before. If virtualization can be implemented at hardware level, system level, and server level, then it can completely change the way we approach architectural designs. This technology can greatly reduce the cost of deployment, resources, operational costs and many more. decentralized storage unit ensures a better and more secure environment. blockchain technologies are comparatively cheaper, resistant, and distributed than existing cloud solutions.
the decentralized network on which blockchain works doesn’t require any central authority for maintaining the system.
the decentralized web requires mining as a service to maintain the platform and keep on adding blocks to the blockchain.
applied blockchain
