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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

Forbes releases top 50 blockchain companies list

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Forbes has released top 50 blockchain companies using blockchain technology list and these are almost all household names of the world's largest companies.

Forbes has released a new top 50 blockchain companies using blockchain technology list and these are almost all household names of the world’s largest companies. In fact, they are all billion dollar plus companies such as Amazon, Citi Group, Foxconn, Comcast and a whole host of others and unsurprisingly the bulk majority of these companies are using Ethereum.

 

Although, outside of Ethereum which is, of course, the number 1 blockchain for these companies, we do see others like Hyperledger and Quorum for example, although much rarer on the list in terms of mentions are blockchains such as Stellar Lumens or Cardano. Blockchains such as TRON, EOS, NEM, and others are not mentioned in the list of top 50 companies.

 

Companies choosing Ethereum according to Forbes:

Big businesses really like what Ethereum is doing. Ethereum has also worked very hard to make these relationships happen over the last few years and those relationships are now paying dividends big time.

 

All the top 10 companies are located in China or the United States.

The Top 10 (Forbes List):

10. Ping An Insurance Company: China

9. Bank of China: China

8. Apple: United States

7. Wells Fargo & Company: United States

6. Bank of America: United States

5. Agricultural Bank of China: China

4. Berkshire Hathaway Inc: United States

3. JPMorgan Chase & Co: United States

2. China Construction Bank Corporation: China

1. Industrial and Commercial Bank of China: China

 

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#Explained

Analysis: Decentralization is the future

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decentralization is the basis of bitcoin blockchain. A development that has threatened to dig up decentralization is the creation of integrated circuits.

In 2008, when Satoshi Nakamoto wrote down the famous white paper in which he proposed a decentralized financial system, he did so in the context of crumbling banks and governments, which as a centralized institution, caused an economic collapse due to poor decision – making and management. Decentralization is the basis on which the entire Bitcoin blockchain is based, and that is why Bitcoin was created primarily to provide an alternative to the central authorities that operate our current global monetary system.

Today, the concept is challenged by the uncontrolled growth of Bitcoin mining – giants such as Bitmain, a Chinese mining company that continues to generate absurd profits and continues to monopolize the Bitcoin network in pursuit of industry dominance.

 

Ethereum Blockchain

The cryptocurrency economy has come to a conclusion – at least for the foreseeable future – Ether will continue to feed the ICOs and lay the foundations for distributed applications. Called Ethereum’s Proposals for Improvement ( EIPs ), they allow for massive participation in decisions that could radically change the future of the network. However, the use of EIPs Ethereum tries to embody the principle of the blockchain technology, namely centralization leads to errors and inefficiencies, while the network, with the right technology, can make better decisions and work more effectively. So, when companies such as Amazon and Chile’s Energy Authority support Ethereum, they do so in a project that advocates – and through EIPs – real practice decentralization.

 

The need of Decentralization:

Where buildings such as capitalism, money, and democracy need new codes, new software, updated smart contracts, better AI and a more united kingdom, full of corporate social responsibility, equal opportunities, and prosperity shared with all. It is not only software decentralization, but it is also the shift of human values to a new way of thinking about exchanges, energy and the shared future of humanity.

The blockchain technology, which offers an alternative to existing trading, governance and finance systems, has the potential to disrupt the industry and create new and exciting opportunities for billions around the world. A development that has threatened to dig up decentralization is the creation of integrated circuits or ASICs for applications. Even more complicated and challenging to decentralize is the rapidly changing world of hardware and the fact that a large technology company now produces most ASICs on the market.

While many Bitcoin advocates see the blockchain as nothing more than competition for existing payment methods or gold, others believe that the blockchain technology is the harbinger of things the world has never seen before.
Bitcoin’s market share has been declining slowly in recent years, and although many believe that bitcoin will continue to grow, there is a rapid rise in other parts of the blockchain ecosystem. When decentralized blockchain protocols begin to break down the central web services that dominate the current internet, we will begin to see real sovereignty on the internet.

 

The future of Decentralization:

Recently, blockchains have become the focus of attention as the first technology to use decentralized device networks. With the promise of full ownership and monetization of their data, blockchains are seemingly convincing alternatives to older third-party data farms. While blockchains use the increasing movement of increasingly powerful personal devices, they have a relatively limited use case and do not fully exploit the potential of paradigm shifts.

This is decentralization, which is a decisive factor in cryptocurrency and blockchain technology in general.
In addition to the major cases of well – known use, there are examples of massive companies that eliminate a “one – point failure” in their closed systems, for governments that approve university degrees. Secondly, governments have historically been serving exchanges with asset seizures, which have paralyzed merchants who hold large amounts of cryptocurrency in the market. If decentralized exchanges become a real reality, the regulatory war will become even more complex for legislators: their current strategy is to target exchanges that operate under their jurisdiction.

Blockchain technology can provide a new way of confirming identity, ways of moving data faster and cheaper, easier transactions such as payments, claims, and data sharing.

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#Blockchain

Use Case: Blockchain in Automobile Industry

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Blockchain technology has gained momentum in the automobile industry. Let's discuss some of the developments in the blockchain for autonomous vehicles.

The growing focus on data manipulation, better quality control and the need for faster business transactions have fuelled the growth of the automobile industry. The development of new products and partnerships by leading companies are likely to stimulate the growth of the blockchain in the untapped markets for the long term.

Blockchain in Automobile Industry

Blockchain technology has gained momentum in the automobile industry, and in the following sections, we will discuss some of the latest developments in the blockchain for autonomous vehicles. Blockchain technology is a fundamental technology that has opened a world of innovative opportunities for the automotive industry.

OEMs could use blockchain technology as a platform to improve their global vehicle cybersecurity, validate material bills, secure micropayments, improve identity management and improve data validation. Blockchain technology offers vital stakeholders in the buying and selling process an efficient payment system. With tailor-made solutions for the automotive industry through blockchain technology, the future looks bright. Blockchain technology can take advantage of the intelligent contract architecture that would improve the payment process.

Porsche is credited with being the first company in the industry to test the implementation of the blockchain in their systems. Porsche has tested how the blockchain technology can be used to lock and unlock a car. In addition, every time someone locks or unlocks a car, the data is recorded in the blockchain and no one can modify or modify it, making it easy to track who has used a vehicle at any given time.

There are endless possibilities, some of which have already been conceptualized – incentives to drive more environmentally friendly, car insurance and car financing, blockchain – based titles, remote – lock chains and unlock vehicles – the list goes on and on. With the blockchain proving to be the future of security, and with cars becoming essentially IoT devices, merging them together seems only natural.

Blockchain developers have experimented with off-network data storage solutions to optimize the number of data transmitted by block chains to improve scalability. By leveraging blockchain technology, drivers can contact remote users of the blockchain ecosystem for updates, nearby suppliers for remote availability, price negotiations. By leveraging Blockchain, users can instantly secure payments for media content and other services they want to have due to their reliability and transparency in transactions. IOT and Blockchain solutions can offer endless possibilities, ranging from safer and environmentally friendly driving behavior, improved and more affordable automobile insurance, to remotely lock and unlock vehicles and much more.

Although blockchain remains the backbone of Bitcoin, distributed ledger technology has proven to be useful as a standalone and secure solution for data structures. The use of blockchain technology to solve the challenges of data security connected to automobile is not only an option but also a necessity. For example, one block chain may contain bills for vehicle components, another blockchain may contain quality control records created during the production process, and another may contain information about the WIP for each vehicle assembly from beginning to end.

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