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How is blockchain algorithm put into operation

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How is blockchain algorithm put into operation. Blockchain Technology is one of the most emerging Technologies of the decade

Understanding the hash function used by the blockchain technology

How is blockchain algorithm put into operation. Blockchain Technology is one of the most emerging Technologies of the decade. It has proved to provide Real-world solutions to a number of problems. It is able to find applications in almost all the fields. But most importantly it has affected the financial and business economy by providing a whole new set of decentralized cryptocurrencies.

The blockchain technology actually works on the proof of work concept and distributed ledger Technology. They both are implemented in order to provide security to the system.

 

Hash function or SHA 256 – blockchain algorithm

One of the most important function that the blockchain network uses, in order to provide security to itself, is the hash functions, specifically SHA-256.

Hash Function is basically an algorithm which takes the input of any size but gives an output of fixed size. Depending on the size of the input the input is either squeezed or expanded in order to make the output of the desired size. The implementation of this particular algorithm in the blockchain technology is when one needs to generate a particular Hash of a block which contains a large amount of information like the transactions, the user ids, and the public keys which are basically nothing but characters.

This is necessary because we need to compare the blocks in the future and also to check if the block has been tampered with or not. Also, we need to take the hash of a particular block as an input to the next block in order to generate its hash.

 

Miners – blockchain algorithm

The miners run this particular Hash algorithm in a set of a large number of transactional records in order to generate a particular Hash. This set of records from a single block. Then the miners need to solve the complex algorithms and when they successfully do it they are permitted to add their particular block in the blockchain which is verified by the other miners in the network. It is also to be kept in mind that as the number of miners in the network increases the difficulty of the complex mathematical problem also increases exponentially and the reward for adding a particular block to the blockchain keeps decreasing.

The transactions which are contained in a single block are said to have happened at the same time and the transactions which are not yet added to the blocks are said to be unconfirmed. Each and every node in the network has the authority to group a set of unconfirmed transactions and suggest it’s addition to the block. But since there are a huge number of nodes and each and every node of the network can suggest the blockchain, so how does the blockchain decide which particular block to accept.  This is decided based on which particular node solves the complex mathematical problem posed by the blockchain to them which is created by an irreversible cryptographic Hash Function. At this point in time, a typical computer would take years together to calculate or specifically guess the result. Hence these days specialized circuit board is used to solve the algorithms.

 

Complex blockchain algorithm

As the difficulty of the solving Complex algorithm increases with increase in the number of nodes, the people, intelligently have started to come together and act as a single node but dividing the number of guesses that each particular one does working themselves. In this way the difficulty level of the complex algorithm is not increased by the addition of a number of nodes, also there is the higher probability of finding the solution and they share the reward within themselves. Such systems are called as mining pools. Some of the mind phones have become so large that they constitute almost 20% of the total mining done on the network. If at all in future if this percentage reaches up to 50% then it is a great threat to the whole network as they can manipulate or tamper the data easily as they would have gained control over 50% of the total network.

Currently, the Bitcoin reward is around 12.5 Bitcoin. It is estimated that over a span of 4 years the reward will keep decreasing by a factor of 2. A number of different algorithms have been put forward in order to overcome the drawback that Bitcoin possesses. The proof of stake concept is one of the best examples. With the efforts to make the Bitcoin network more secure, the hackers and the criminal minds somehow find a way to dodge them.

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#Blockchain

Ethereum Name Service. How to buy Ethereum Domains Explained

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Using Ethereum Name Service, One can send Ether to anyone by using their Ethereum name instead of the complex and ambiguous hexadecimal address.

How to avail an Ethereum name through the Ethereum Name Service.

Opening remarks

The blockchain technology has developed cryptocurrencies along with many and other industrial domains. The cryptocurrencies are secured with the amazing cryptographic principles, which in turn contains sets of confusing strings that need to be remembered in the form of public or private keys. Therefore, recalling those public addresses each and every time, while initiating any kind of transaction is highly challenging. Especially, in the case of the Ethereum network, as there are provisions available even for the Decentralized Applications and Smart Contracts. The complexities, in this case, are increased by a number of folds and therefore needs special attention. Intelligently, the experts are trying to attach domain names to each and every address through a decentralized initiative discussed below. Let’s understand Ethereum Name Service and its usage.

 

The Ethereum name service Dapp

Widely popular as Ethereum name service is the paradigm incorporated by the experts in order to eliminate the need of remembering long hexadecimal addresses. By utilizing the amazing functionalities provided by the service, one can send Ether to anyone across the world by using their Ethereum name instead of the complex and ambiguous hexadecimal address. For example instead of remembering the address, ‘0x4cbe5826c0480…’ one can easily replace it with ‘tonystark.eth’. This link establishment between two entities is nothing but Ethereum name service and one needs to buy Ethereum names for their respective addresses, as there might be a lot of competition for the same Ethereum name.

 

What is Ethereum name service actually?

ENS is nothing but an Ethereum based Decentralized applications which launched its main net in May 2017. The decentralized applications offer Ethereum name service which absolutely functions with the assistance of smart contracts.  In brief, the ENS, abbreviation of Ethereum name service, has similar goals to that of the Domain name service of the internet but is completely blockchain-based with a different set of capabilities and requirements.

 

Understanding the process of Ethereum name service

Series of steps must be followed by a cryptocurrency enthusiast, in order to obtain the Ethereum name for the wallet or Smart contract. Ethereum name service is obtained by the users through an auction process. The auction process applied, in this case, is a Vickrey auction process. It is nothing but a variant of sealed bid options where the bidders bid a certain amount on a particular Ethereum name without actually knowing the bid amount of other bidders. In this way, the users are open for an opportunity to bid and avail a precise value of the commodity. The steps to avail Ethereum name service is explained below.

1. The first step of the auction, the user bids a certain amount on an Ethereum name that he/she wishes to buy. This process triggers a three-day window time frame. The Other bidders within the community can bid their respective amount on a number of Ethereum names of their choice within this three day period. It is worth mentioning here that none of the bidders knows about each other, the amount, and the Ethereum names they are betting on. In simple words, the process is completely anonymous.

2. After the first step of obtaining an Ethereum name service is completed reveal period of 2 days is put forth before the bidders when they need to reveal their respective biddings. It is important to reveal their biddings and if they fail to do so, it would result in the complete loss of their amount.

3. After a waiting period of 2 days, the highest bid wins the competition and has to pay the second highest amount, and all the remaining bidders who had revealed their biddings would receive back their amount with a deducted fee of 0.5%. As the whole system is powered by Smart contracts, the funds of the winner are stored in a smart contract until he/she is under the control of that particular Ethereum name.

Interestingly, the winner can hold the Ethereum name under the control and when released back to the ecosystem can avail their complete amount refunded back.

Interfaces offering the Ethereum name service

In order to facilitate, the ease of using the Ethereum name service a number of initiatives have been proposed which can be approached to obtain Ethereum names. Some of the most popular ones which assist the users in utilizing the Ethereum name services are as follows.  

  1. registrar.ens.domains
  2. My Ether Wallet
  3. ETHTools’ ENS integration, etc

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#Bitcoin

How to get a Bitcoin Debit card? Explained in three steps.

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Bitcoin Debit card has become very rampant, where users can use it in a similar way they used the traditional debit cards.

Deciphering a Bitcoin Debit card and how to procure one.

Intro

It is certainly not a surprise that the cryptocurrency space has revolutionized, the way the financial economy of the world functions. With Initial coin offerings, cryptocurrency tokens, decentralized applications, smart contracts, lightning networks, side chains, forking, etc are the most important and new cryptocurrency keywords which have been spawned by the development in the cryptocurrency space. Satoshi Nakamoto would never have thought that his simple initiative of an electronic cash system would grow into a billion dollar industry. Let us read about Bitcoin Debit Card and how to get one.

 

Bitcoin Debit card

Nevertheless, many cryptocurrency coins are available in the market and predominantly used for investment and not in the form of currency. Therefore, many initiatives have been undertaken, in order to democratize the usage of cryptocurrencies on a daily basis. One such initiative is the Bitcoin Debit card.  Bitcoin Debit cards have become very rampant, where users can use it in a similar way they used the traditional debit cards. The main goal is to completely radicalize the usage of such Bitcoin Debit cards in order to form a hassle-free form of financial ecosystem. Therefore in order to contribute to the community’s development, let us understand how to get Bitcoin Debit card.

 

Ordering a Bitcoin Debit card has never been that simpler. It is as simple as filling an application form and submitting it to the respective authority, very similar to any other traditional Bank.


Step 1 to buy Bitcoin Debit card

Firstly, all the users need to find a suitable Bitcoin Debit card providers they are usually nothing no one but the traditional Paytm payment gateway service providers which you have initiated to sell Bitcoin Debit cards in order to leverage their business there are many of them available in the market but the most reliable and popular one is the Coinbase’s Swift Bitcoin Debit card. One can avail it in a seamless fashion.

Step 2 of buying Bitcoin Debit cards

The user after selecting the appropriate Bitcoin Debit card provider needs to fill the application form with contains some basic details of the users like complete name, phone number, address, date of birth, and most importantly the Social Security Number.  We must properly provide all the authentic details in order to avoid any further discrepancies in data, which indirectly might lead to the rejection of the Bitcoin Debit card application. One of the main requirement of the Social Security Number is that the banks can easily verify the Know Your Customer regulations in a simplified manner.

 

The third step to buy Bitcoin Debit cards is to make the payment.

The users then need to make the basic pay in order to avail their Bitcoin Debit card. It is worth mentioning at this point, that this payment does not reflect in the Bitcoin Debit card that one receives. The user’s need to exclusively add funds to their Bitcoin Debit card by a number of other methods with which would be discussed, in maybe some other article. Once the payment is done the process is complete and the users receive their Bitcoin Debit card.

Further attributes of Bitcoin Debit cards

The usage and development of Bitcoin Debit card have become very popular since 2015.  It has opened up the cryptocurrency community for new ways to use Bitcoin, in its real format. Although the high volatility and price fluctuations, is resisting the merchants to accept Bitcoin, the crypto space will undoubtedly get mature enough to be used by the merchant stores in a very common manner. However radical steps have been taken in this regard, where any merchant store which accepts VISA credit or debit cards, would automatically be upgraded to accept the Bitcoin Debit cards as they are indirectly powered through VISA itself.

Future

As the cryptocurrency market gains, maturity Bitcoin Would still be in the topmost position, as Bitcoin Debit cards would monopolize Bitcoin over the market. However, with respect to the scalability issues of the Bitcoin blockchain network, the Bitcoin Debit cards might prove to be a bottleneck causing congestion due to more inflow of transactional traffic towards the network.

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#Blockchain

Top 10 Dapp list of 2018. Amazing use of Blockchain.

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Top 10 Dapp list of 2018. Decentralized applications have taken the whole cryptocurrency industry by storm.

Comprehending some of the most popular and amazing Dapps of 2018.

Introduction

Decentralized applications have taken the whole cryptocurrency industry by storm.  Especially, the Ethereum network where many instances have been observed that the due to the Decentralised applications, the Ethereum network experienced congestions. Technically most of the Decentralised applications run on the principle of smart contracts with no centralized authority controlling the application. The apps contain real-world assets which can be used to play within the game and one can even earn some amounts of profits through it.  Let’s see the top 10 Dapp list of 2018.


1. 0xUniverse Dapp

The blockchain based game is the one where the players need to collect and manage the ownership as well as the resources of the planets in the Galaxy. The users just need to constantly expand the game to unravel some of the most unheard mysteries of the universe.  The developers are also looking forward to adding amazing storylines behind the mysteries of certain planets and keep their community members up to date.

 

2. Blockonix Dapp

One of the most decentralized forms of Ethereum based cryptocurrency exchange is well known for its reliability and low transaction fees. The exchange works without the human interference, completely through smart contracts. The transaction fee is as less as 0.1% and an additional 70% off is availed only when the users use the exchange’s native bdt tokens for the transaction.  

 

3. PoWH Dapp

It is one of the decentralized cryptocurrency exchange with a unique working mechanism. Its native cryptocurrency token is based on the ERC20 protocol and named as P3D. It is quite amusing that anyone who buys these tokens has to pay a 10% tax to the exchange, which is in turn distributed among the other P3D token holders, but as the process further continuous and as other people use the exchange in a to buy or make a transaction with a token, their 10% fee is distributed among all the previous P3D token holders. In this way, the users can generate some profits through it.

 

4. IDEX Dapp

It is the very first decentralized cryptocurrency exchange which runs on the smart contract. One of the most advanced Ethereum based decentralized exchange supports real-time transactions along with high transaction throughput. However, it is designed in such a way that only the exchange is able to submit the signed transactions to the Ethereum network. It provides a combination of the best of the services from decentralized and centralized mechanisms.

 

5. Forkdelta Dapp

Another decentralized cryptocurrency exchange was developed mainly as a fork of Etherdelta when it was sold to the other investors who lacked the effective decision-making skills. The exchange is a completely open source in nature which provides transparency with its community members.  Seamless import of the Ethereum wallet is supported through the MetaMask extension.

 

6. Fomo3D Dapp

It is basically a gambling based decentralized game, on the Ethereum platform. Interestingly, the winner of the game is the person who bought the last key before the timer reaches 0. The complex mechanism is involved whereas the timer increases the number of the users starts to buy keys and gradually as a scarcity of the keys increases its value also increases and the timer gets slightly delayed. The decentralized game is gaining popularity among many others in the domain.

 

7. Zethr Dapp

The decentralized game is based on the principles of Casino, where the users can buy Zethr Tokens, in order to take part in the game. The games of the similar niche, have a linear increase of the price but here interestingly the invested Ether price and the price of the Zethr token is inversely square related. The cryptocurrency token as a minimum floor value which means that the users would undoubtedly be safe from the potential losses.

 

8. Augur Dapp

It is one of the most fascinating ethereum marketplaces where the ecosystem provides a sense of clairvoyance, with respect to any future predictions on various topics of discussion. The wisdom of the crowd principle is applied here where more accurate results are predicted based on the input provided by the holders of the token. The correct predictors would also be rewarded back.

 

9. Gods Unchained Dapp

It is another Ethereum based decentralized game of cards.  The users are provided with the provisions of selling their cards to other users with completely free of cost but retaining the ownership. Amazing weekly tournaments are held where huge amounts of rewards are kept aside for it.   

 

10. vDice Dapp

It is the world’s first decentralized Ether betting game. Basically, the users bet on a particular smart contract and the game is very easy to be played by any newcomer.

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