What Is a Blockchain Developer?

Blockchain development involves creating a decentralized, tamper-proof database for securing transactions and other records. A Blockchain developer develops apps on blockchain protocol architecture; they operate, optimize and improve blockchain protocols. They also develop smart contracts. 

There are two types of blockchain developers.

• Blockchain software developers develop software based on Blockchain. They are front-end and back-end developers of decentralized apps of Dapps. They also supervise and stack Dapps.
• Core Blockchain developers design the architecture and protocols of Blockchain. They are responsible for monitoring the blockchain network and keeping it safe.

Skills Required to Become a Blockchain Developer

Top 5 Blockchain Skills

To become a blockchain developer you need to learn the following skills.

Blockchain architecture

A blockchain developer should know about Blockchain and how it works. He must have a clear understanding of consensus mechanisms and cryptographic functions. 

Blockchain developers must learn about how DLTs(Distributed Ledger Technologies) operate. Mastery of blockchain architecture is a must-have skill for you if you aspire to become a blockchain developer.

There are three types of blockchain architecture:

• Public Blockchain architecture is completely decentralized. It is accessible to everyone, and anyone can be a part of it. Bitcoin is the most common example.
• Private Blockchain architectures are accessible only to an authorized group of individuals. They are mostly used by private organizations.
• Consortium Blockchain architectures aren’t completely decentralized. They are controlled by a group of organizations. The Energy Web Foundation is an example. 

You should be familiar with all the different types of architecture. Developing an app on Ethereum won’t be the same as building applications on Ripple due to variations in consensus mechanisms, smart contract languages, and use cases.

Cryptography

Cryptography studies protocols that encrypt the data stored on a blockchain network. Each block of information in a blockchain network is linked to the ones before and after it with a unique cryptographic hash. This prevents malicious third parties from accessing the data stored on a blockchain. 

Learning cryptography is crucial for a blockchain developer as this forms the basis of the security of Blockchain. Blockchain technology uses public and private keys to encrypt and decrypt data.

As a developer of a blockchain network, you must be able to manage these keys and ensure that only authorized persons have access to them. You must also know how to use digital signatures to prevent data from tampering.

Security should be at the forefront of a blockchain developer, and cryptography forms the foundation of blockchain technology.

Programming Languages

To become a blockchain developer, you must learn programming languages like C, Python, Javascript, Ruby, Golang, etc. Programming languages are the basis of all the applications and architecture of Blockchain. 

Java has been used to create a cryptocurrency NEM. C++ is a must-have. It was the language that was used to create Bitcoin. To become a blockchain developer, Javascript, Ruby, and C# are essential.

Solidity is a programming language specifically designed to develop smart contracts on Ethereum. Other programming languages are not specific to a network type and can be used for several blockchain development purposes.

Smart Contracts

Smart contracts are an application of Blockchain that allows businesses and organizations to exchange goods or services without the involvement of a third party. These contracts are stored on the Blockchain and are executed automatically when a predetermined set of conditions are set. They do not require the approval of an authority. Smart contracts are faster and more time efficient than traditional methods.

A blockchain developer is responsible for planning and executing smart contracts as intended. As blockchain technology evolves, various businesses are widely utilizing smart contracts. New use cases of smart contracts will likely arise which means that the demand for blockchain developers will increase.

Some programming languages are specifically associated with the development of smart contracts. They include chain code and viper etc.

Data Structures

Blockchain developers work with various data structures regularly. These data structures are used to build and implement networks. Blockchain relies on complex data structures to create blocks of information that store data. 

A blockchain developer must comprehensively understand data structures such as hash tables, liked lists, binary trees, and graphs. 

A blockchain developer should be able to write algorithms for different processes like confirming balances, validating transactions and verifying digital signatures. To perform these functions like a senior developer, a strong understanding of data structures and their applications is needed.

Besides these core 5 skills, it is a big plus to have knowledge of web development as many blockchain applications are web-based. Finally, just like in many IT jobs soft skills like problem-solving, teamwork, effective communication are essential for a blockchain developer.

Conclusion

Five core skills, blockchain architecture, cryptography, programming languages, smart contracts and data structures are required to become a blockchain developer.

Acquiring these skills allow blockchain developers to create secure, decentralized networks that store transaction records and other information. 

Aspiring blockchain developers must hone these 5 skills to step into this cutting-edge technology.

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Blockchain expertise is scarce among candidates and also high in demand. If you want to get into this cutting-edge field, it would be best to take a certification in blockchain technology.

This blog post will show how blockchain can help you land your dream job or career. We will explore the benefits of blockchain and see why it is a valuable skill for blockchain enthusiasts.

High-Paying Jobs

The average salary of a blockchain developer is decent, around $100,000 per year, according to Glassdoor. As blockchain is becoming more and more pervasive in various industries, the blockchain industry has high demands and offers high-income potential and promising careers.

Glassdoor, 2023

There is a high demand for various job posts for blockchain developers in multiple fields. These include cryptocurrency analysts, mining technicians, cryptocurrency developers, cryptocurrency traders, Bitcoin full-stack developers, and many others.

Blockchain technology offers several advantages over traditional practices. It is continuously gaining traction, and that’s why the demand for Blockchain professionals is increasing. According to DevSkiller Digital & IT Skills Report 2023, the need for blockchain-skilled professionals will increase by 552% in 2022.

Revolution in Industries

The emergence of blockchain technology has brought about an appreciable change in the operations of industries, and its applications continue to expand rapidly. From healthcare to cybersecurity, finance, and governments have started implementing blockchain-based systems to improve efficiency in their functions.

Blockchain provides industries with more security with its decentralized databases, which are immune to tampering and manipulation. It increases transparency, data safety, and efficiency in business transactions. Blockchain also reduces the cost requirement of various business processes.

The Deloitte survey revealed that 81% of senior executives believe blockchain technology has achieved mainstream adoption.

A Danish logistics company Maersk has also used blockchain technology to successfully track its containers globally.

Investment in Cryptocurrencies and ICOs

Blockchain is the technology that powers cryptocurrencies. Bitcoin and Ethereum are popular cryptocurrencies. Peer-to-peer cryptocurrency transactions are unregulated. A deeper understanding of blockchain technologies will help you trade cryptocurrencies smartly and more efficiently.

Initial coin offerings (ICOs) are a popular way for companies to raise money for their products or services related to cryptocurrency. Think of it as a crowdfunding campaign, but instead of receiving a product or service, investors receive digital coins that may have a specific use.

ICOs are similar to the more familiar initial public offerings (IPOs) in which companies raise funds by offering stocks to the public. Unlike IPOs, ICOs are mostly unregulated, so investors must do their own research before investing. Unfortunately, many ICOs have turned out to be scams or have underperformed.

An ICO requires you to buy an established digital currency and know how to store and trade it. Since ICOs are unregulated, investors must be cautious and do their research.

If you have an insight into how blockchain technology works, or more preferably, you have a certification in blockchain, you will be better off shortlisting and investing in ICOs.

Future of the World Wide Web:

Web 2.0 is the current version of the internet that we commonly use these days. But like other fields, blockchain technology is also overhauling the internet. Web 3.0 is the next version and future of the world wide web, and it is based entirely on decentralized blockchain technology. As the internet is transitioning from Web 2.0 to Web 3.0, the demands for blockchain developers would be sky-high.

If you are already a programmer, it would be more than a smart move to acquire blockchain skills so that when the internet fully enters this new era, you will have everything to break into this technology without a hassle and become an industrial revolutionist.

Future of Finance:

Decentralized finance(DeFi) is becoming increasingly popular, and many industries have started utilizing it for financial transactions. Cryptocurrencies have disrupted traditional banking systems and are continuously being adopted by several industries. These decentralized currencies don’t require any middleman or central authority, so they are more time-saving and cost-efficient, thus more acceptable.

Decentralized finance provides more privacy to users as they can make purchases and perform exchanges or transactions, all by being completely anonymous, and their identity is revealed to no one. Also, decentralized transactions are more transparent and secure.

Global trade is estimated to completely shift to cryptocurrencies instead of paper currencies. Markets and markets also estimated that blockchain would increase to a massive $67.4 billion market size by 2026. So it is the right time for anyone enthusiastic about blockchain or cryptocurrencies to start learning blockchain.

Blockchain Is Diverse

Blockchain technology implementations are not limited to cryptocurrencies or record keeping. Blockchain is an ocean of endless possibilities. After the popularization of blockchain and digital currencies, we have seen the advent of NFTs, DeFi, and metaverse emerging. More such technologies are likely to evolve with the adoption of blockchain in multiple industries.

In blockchain development, developers can do anything in conventional programming. But also, blockchain has much more creativity, and a world of possibilities awaits the developers.

Conclusion

In conclusion, blockchain technology is rapidly gaining traction in various industries, making it a highly in-demand skill with promising career opportunities and high-paying jobs. With the emergence of Web 3.0 and the growing acceptance of decentralized finance, blockchain technology has limitless potential for innovation and disruption.

A vital tool for many industries, blockchain technology also increases the security, transparency, and efficiency of commercial transactions. Learning blockchain technology and earning certification in this area may be a wise move for those looking to break into this cutting-edge industry as demand for blockchain professionals continues to rise.

Figure 1:
https://www.glassdoor.com/Salaries/blockchain-developer-salary-SRCH_KO0,20.htm

Ico:

https://www.ifec.org.hk/web/en/financial-products/fintech/ico-bitcoin/ico-bitcoin-cryptocurrencies.page

Blockchain is diverse

https://www.linkedin.com/pulse/how-can-we-utilize-blockchains-open-access-doors-diverse-underell/

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Healthcare

Blockchain has been used widely in almost every aspect of the healthcare industry. The reason is that blockchain has the power to solve many issues that have afflicted the healthcare industry’s history.

One of the health sector’s major issues is securing personal and sensitive medical data and records. 692 large data breaches in the healthcare sector were recorded between July 2021 and June 2022. The miscreants stole payment information as well as health and genomic records. For this reason, many hospitals have shifted their record systems to the blockchain.

Blockchain records are decentralized, transparent, and secured by cryptography. So no hacker can expose the identity of a specific record unless provided with a specific address. Thus the odds of a data breach are highly reduced.

Healthcare is a resource-intensive industry because of high hospital costs and inefficient practices. As of 2021, the US has spent almost 20 percent on healthcare. Blockchain has offered various refinements that can make healthcare functions more cost-effective.

Blockchain reduces the need for several middlemen and authorities. This cuts down costs charged by these agencies and reduces human errors. Blockchain-based records maintain patients’ privacy as their data can be shared strictly with authorized personnel. Blockchain is used in the supply chain to track medicine and drugs, preventing their illegal supply and canceling counterfeit drugs. It can also be used to monitor waste emissions.

Figure 1: Blockchain-based health-care data management system between multiple stakeholders (nodes) within a health-care ecosystem (Ng, Wei Yan et al)

Finance and Banking

Finance is another area where blockchain is finding new applications exponentially. Various multinational companies are continuously adopting cryptocurrencies for financial transactions.

Blockchain provides more security and transparency than conventional methods. Blockchain is a shared ledger that is visible to everyone. This ensures transparency among the network members. Every information added to the ledger is modified by a maximum number of participants. Also, one can update or modify records without the consensus of the majority of the participants. This ensures security, clarity, and prevention of fraud.

Distributed ledger also negates the compulsion of preparing records, reconciliations, and other exhausting paperwork. It also helps in faster identification of potential risks or mistakes.

Smart Contracts, an application of blockchain, are stored on the blockchain and are executed automatically when a decided set of conditions is met. The automation provided by blockchain helps reduce costs and time requirements. Banking systems also use blockchain for client onboarding, anti-money laundering, and fraud protection.

Decentralized finance(DeFi) refers to shifting from traditional, centralized financial systems to peer-to-peer finance empowered by blockchain. DeFi offers a wide range of financial services like lending, borrowing, and stablecoins and has become the most prominent sector in the blockchain space, with over $13 billion worth of value locked in Ethereum smart contracts.

Figure 2: Traditional Trade Finance Transaction vs Blockchain-based Trade Finance.

Supply Chain Management

Blockchain is improving supply chain management in several ways. Smart contracts are one of the applications of blockchain in SCM. Smart contracts reduce the need for intermediaries and increase supply chain management’s automation, transparency, security, and efficiency.

Blockchain technology is used to track and trace products throughout their life cycle. This reduces the odds of fraud and corruption. The “trustless” nature of blockchain helps resolve trust issues between stakeholders in the supply chain.

Blockchain can also be used to track the conditions of the products, like temperature. If a medicine or food product is shipped at a particular temperature, it can be monitored throughout its journey to ensure the consumer receives a safe and quality product.

Figure 3: Blockchain-based supply chain management

Government

The record-keeping power of blockchain enables governments to efficiently store identity information like birth and death dates, marital status or property transfers, etc., on encrypted identity wallets, enabling security, control, and streamlining attestations.

Government can store land, property, or vehicle transaction record on a distributed ledger, making it easier to verify ownership and transfers.

Blockchain-based smart contracts can improve contract creation and execution, as demonstrated by the Swedish land registry’s use of blockchain for land-title transfers. The disintermediation and removal of notarization have reduced transaction time by more than 90 percent.

Figure 4: The proposed consortium blockchain e-government system

Cybersecurity

Blockchain also finds its use in enhancing cybersecurity and protecting against data breaches. An estimate in 2020 suggested that we generate 1.7MB of data per person per second. That makes a lot of information per day that is vulnerable to human error, phishing, hacking, or malware attacks.

Blockchain improves security by distributing data between several nodes instead of storing it in a central server. So to hack a system, hackers would have to take control of the maximum number of network nodes instead of a single server, making it highly difficult.

Blockchain systems can cross-reference data automatically and notice any misrepresented information. Blockchain records are encrypted, ensuring tamper-proof transactions.

Media

The media industry has also adopted blockchain technology because of benefits like efficiency, transparency, and cost efficiency. Blockchain provides greater security for Intellectual Property (IP) and prevents copyright infringement. The global market of blockchain in media and entertainment is estimated to reach $1 billion in 2023.

Blockchain disrupts the industry structure by allowing copyright owners to bypass content aggregators, platform providers, and royalty collection associations to a large extent. This technology revolutionizes pricing, advertising, revenue sharing, and royalty payment processes.

Blockchain improves the monetization of content sharing between consumers (C2C) and peer-to-peer (P2P) interactions by making them transparent and trackable. Real-time billing and reduced complexity of rights management are among the benefits.

Figure 5

Agriculture

Blockchain technology is also highly significant for the agriculture industry as it improves efficiency, trust, and transparency. It can track and record information about plants, seed quality, crop growth, and the entire supply chain, enhancing transparency and eliminating concerns related to illegal operations and unethical practices. Blockchain also aids in tracking contamination and facilitating recalls.

The use of blockchain in agriculture can be categorized into four broad categories: intelligent farming, food supply chain, insurance for agriculture, and agricultural product transactions. Intelligent farming involves leveraging technologies such as IoT, sensors, and machine learning to enhance the efficiency and reliability of the farming process. Blockchain provides a decentralized and secure system for managing smart technology, preventing data manipulation and cyber-attacks.

In the food supply chain, blockchain improves transparency, traceability, and trust between producers and consumers. It allows specific product information to be stored on the blockchain, providing consumers with trustworthy information about food production. This technology empowers consumers to make informed purchasing decisions and rewards farmers and producers who implement good farming techniques.

Blockchain can also revolutionize agricultural insurance by enabling index-based insurance, which triggers reimbursement based on quantifiable indicators rather than loss assessment. This improves the accuracy and efficiency of insurance processes, benefiting both farmers and insurance companies.

Infrastructure and Energy

Blockchain technology plays a significant role in the infrastructure and energy sector by improving efficiency, transparency, and security as in other industries. The implementation of blockchain can lead to a reduction in costs associated with financial intermediaries and markets, allowing for more intense competition and lower entry barriers for new players. This shift towards a more competitive structure in the financial sector can benefit consumers and businesses alike.

In the energy sector, blockchain offers solutions to challenges related to sustainability, supply chain management, and transaction efficiency. By eliminating the need for centralized intermediaries, blockchain enables secure and automated energy transactions between producers, suppliers, and consumers. It also facilitates the use and transfer of electricity on a local scale, promoting the adoption of smart grids and meters.

Information and Communication

Blockchain technology is making significant strides in the information and communication sector, revolutionizing various areas such as telecommunications, messaging apps, publishing, education and academia, libraries, entertainment, social media content, sports management, gambling, art, and photography.

In the field of telecommunications, blockchain technology presents a unique opportunity for identity management services. With its ability to securely store and verify data, blockchain allows for tamper-proof identity verification in the telecom sector. Customers can have greater control over sharing their data with specific companies, ensuring privacy and security. Additionally, blockchain facilitates transparent and efficient contract management, making it easier for stakeholders in the telecom industry to collaborate on infrastructure projects and implement cost-saving sharing models.

Messaging apps are integrating blockchain capabilities to enhance user security and privacy. Platforms like Status and Signal provide encrypted messaging services that prioritize user privacy, while blockchain technology ensures the authenticity and integrity of news content, combating misinformation and manipulation.

Publishing is being disrupted by blockchain through platforms like Bookchain and Publica, which enable authors and publishers to bypass traditional intermediaries, directly transact with readers, and protect intellectual property rights. Blockchain also secures news photos and records their metadata, preventing manipulation or sharing out of context.

Education and academia benefit from blockchain’s ability to secure and share student records. Platforms like Sony Global Education and Learning Machine offer blockchain-based solutions for verifying academic credentials and streamlining verification processes. Libraries are exploring blockchain’s potential to enhance metadata archives, support community-based collections, and manage digital rights effectively.

Conclusion

In conclusion, blockchain technology has emerged as a game-changer across various industries, offering solutions to longstanding challenges and transforming traditional processes. Its applications extend beyond the industries mentioned in this article, with healthcare, finance, supply chain management, government, cybersecurity, media, agriculture, infrastructure, energy, and information and communication sectors all benefiting from blockchain’s capabilities. From secure identity management and efficient contract management to enhanced transparency, traceability, and automation, blockchain has the potential to revolutionize the way industries operate and interact. As blockchain continues to evolve and gain adoption, we can expect further advancements and innovations in diverse fields, leading to more secure, efficient, and transparent systems.

Blockchain technology is being utilized in many other industries beyond those discussed in this article, such as real estate, insurance, logistics, retail, voting systems, charity, music, gaming, and more are embracing blockchain to enhance security, streamline processes, and create decentralized ecosystems.

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Source:

Blockchain applications in health care for COVID-19 and beyond: a systematic review, Ng, Wei Yan et al.,The Lancet Digital Health, Volume 3, Issue 12, e819 – e829

https://www.thelancet.com/journals/landig/article/PIIS2589-7500%2821%2900210-7/fulltext#articleInformation

Figure 2: https://mahanakornpartners.com/revolutionizing-trade-finance-with-blockchain-technology/

Figure 3: Lumineau, Fabrice & Wang, Wenqian & Schilke, Oliver. (2020). Blockchain Governance—A New Way of Organizing Collaborations?. Organization Science. 10.1287/orsc.2020.1379.

Figure 4: Elisa, N & Yang, Longzhi & Li, Honglei & Chao, Fei & Naik, N & Nnko, Noe & Yang, Li & Chao,. (2019). Consortium Blockchain for Security and Privacy-Preserving in E-government Systems.

Figure 5: https://www.europeanbusinessreview.com/are-blockchain-based-digital-networks-the-future-of-social-media/

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The convergence of AI and blockchain holds tremendous potential for groundbreaking advancements across various industries. By combining the intelligence of AI with the secure and decentralized nature of blockchain, new possibilities can be unlocked and innovations can be driven in industrial and daily life operations.

While AI faces challenges related to transparency and trust, blockchain can serve as a powerful tool to address these concerns. The immutable nature of blockchain’s digital records and its decentralized data storage provide a transparent and accountable framework for AI systems. By leveraging the capabilities of blockchain, stakeholders can gain insights into the decision-making process of AI algorithms and verify the integrity of the underlying data, thereby enhancing trust and facilitating explainable AI.

Moreover, the interplay between AI and blockchain extends beyond transparency and accountability. The integration of these technologies opens up new avenues for augmentation and automation. AI brings intelligence to blockchain-based networks, enabling comprehensive data analysis and actionable insights. Through automation, AI and blockchain streamline business processes, reducing friction and increasing efficiency. This seamless collaboration empowers individuals, fosters a transparent data economy, and drives the adoption of decentralized solutions.

As the intersection of AI and blockchain is delved into, the profound impact of their synergy is uncovered. A glimpse into their transformative potential is offered by the real-world use cases and interdependencies between these technologies. Through the exploration of this dynamic landscape, further exploration and innovation are sought to be inspired, ultimately harnessing the full power of the AI-blockchain relationship.

The intersection of these two technologies can bring various advancements in industrial and daily life operations. In this blog post, we will see how these two technologies together are making innovations.

AI and Blockchain Reshape Cybersecurity

AI and Blockchain together can reshape the current landscape of cybersecurity. AI can be employed in cybersecurity to detect and respond to potential threats thousands of times faster than humans. AI can spot security breaches and remove them promptly.

Blockchain can be used as a highly encrypted ledger platform to store data in a decentralized manner, allowing only authorized people to access it. Integrated with AI, Blockchain can decentralize and secure data collected by AI to enhance data privacy and safety.

With blockchain technology, all the data, variables, and processes AIs use to make decisions will be recorded in immutable records that can’t be changed. This will make it easier to audit the whole process. Real-world examples include Blackbox AI using Blockchain and machine learning to automate and speed up the construction industry’s workflow, management, and verification processes.

Supply Chain

AI and Blockchain can help improve transparency in the supply chain by allowing the tracing of products and product conditions. This prevents intermediaries from tampering with a product and improves trust among agencies. Similarly, any faulty or error during the process can be tracked and resolved timely.

AI and Blockchain allow companies to digitize physical assets and create transparent, immutable, and unalterable records. This improves management, provides greater visibility, and prevents fraud and errors. AI’s machine learning processes are crucial to supply chain management as they allow companies to forecast inventory, consumer demand, and supply chain.

Furthermore, integrating IoT (Internet of Things) with AI and blockchain can further enhance supply chain visibility. By placing IoT sensors on goods, companies can monitor their condition throughout the transportation process, and this data can be securely recorded on the blockchain. This integration allows manufacturers, freight forwarders, and port operators to have real-time insights into the movement and conditions of goods, leading to more informed decision-making and improved efficiency.

The DHL Global Trade Barometer is an example of AI and Blockchain-equipped supply chains.

Benefits of AI and Blockchain to Financial Systems

AI and Blockchain provide several solutions to the challenges faced by financial systems, providing enhanced security, improved customer service, and efficient transaction processing.

Blockchain secures transactional records by storing information in an unalterable, decentralized database visible to every network member, thus ensuring transparency and safety. A blockchain network can only be accessed with special keys. This allows only authorized people to access the information. Any attempt to tamper with the records requires authorization from all network members. AI integrated into financial systems can further improve this security by detecting real-time fraud and suspicious activities and notifying users and administration.

Blockchain and AI can be implemented to provide better customer services to clients. Various services can be automated using these technologies. Blockchain can store clients’ data securely, and AI can analyze the information and make unbiased decisions. Customer assistant chatbots are examples of such applications.

Blockchain technology has already made the traditional slow money transfer through banks much faster, cheaper, and more efficient by reducing intermediaries. AI can further enhance such systems by automating payments. With the advancements in natural language processing models, AI-powered voice assistants can facilitate payments, making transactions more convenient and accessible.

Additionally, in the realm of cryptocurrencies, AI can play a significant role in improving trading strategies and market analysis. By utilizing AI and natural language processing techniques, sentiment analysis can be conducted to gauge market sentiments towards cryptocurrencies. This analysis can help traders make informed investment decisions based on the overall positive or negative sentiment.

AI can also assist in obtaining relevant and clean data for cryptocurrency trading, allowing traders to create effective strategies. Furthermore, the integration of AI and blockchain can enable fully automated trading strategies, leveraging the speed and accuracy of AI algorithms to execute trades swiftly and profitably.

Privacy protection is another aspect where blockchain and AI complement each other. The cryptographic techniques employed in blockchain technology enhance privacy throughout the network, ensuring secure AI training and operations. Robust privacy systems enable the training and deployment of competitive and complex AI models while safeguarding sensitive data.

Healthcare

Blockchain and Artificial Intelligence are also significant in the field of healthcare. AI can rapidly perform complex computational operations and analyze large data sets without bias. Blockchain can help store medical records securely. It can improve the current EHR(electronic health record) measures by improving security and transparency. EHR software like Epic also uses artificial intelligence to predict hospital admissions, detect patient risk levels, etc.

AI-based technologies can also allow faster identification and diagnosis of a disease. Automated robots as assistants can make surgical processes much faster and more efficient. AI-based systems can also provide personalized medicine and treatment to patients.

Combination of AI and Blockchain provide a holistic approach to patient data management. This combination enables to create platforms that allows patients to securely store and control their health records while granting access to healthcare professionals for research purposes. This technology facilitates data sharing while maintaining patient privacy.

Agriculture

AI and Blockchain-based technologies also provide innovative solutions in agriculture. AI can track the growth of weeds and diseases caused by pests etc., with the help of sensors. AI can also analyze soil conditions, agriculture land appropriateness, crop timings, and other things to help farmers make better decisions.

Moreover, the integration of IoT, AI, and blockchain in agriculture enables the concept of smart farming, facilitating efficient tracking of logistics and enhancing operational processes. An exemplary application of AI and blockchain in the agricultural industry is AgrBlockIoT’s Agr-Food supply chain management solution solution, which leverages these technologies to ensure transparency and traceability.

Furthermore, the combination of AI and blockchain is highlighted for tackling challenges such as drought, desertification, pollution, and soil erosion. By embracing good agricultural practices (GAP) that prioritize food safety and sustainability, farmers can effectively manage agronomy at the field level. This includes leveraging advanced ground-based and remote sensing technologies to observe, measure, and respond to changing conditions, ultimately optimizing crop production.

Remote sensing satellites play a crucial role in agriculture by capturing high-resolution data. Through the analysis of this data, vegetation indices are derived, enabling the monitoring of changes in vegetation cover and the tracking of plant phenology. AI algorithms further contribute to agronomy management by enabling crop production forecasting, assessing crop damage, detecting nutrient deficiencies, monitoring droughts, and identifying pests and diseases.

In addition to agronomy, blockchain technology finds its application in agriculture supply chains to enhance transparency, traceability, and efficiency. By integrating blockchain with multi-agent systems (MAS), transaction costs can be reduced, logistics can be optimized, and food safety protocols can be improved. Blockchain ensures secure and transparent information management throughout the food production process, enabling traceability from seed to the final food product and improving overall supply chain efficiency.

Intellectual Property Ownership Protection:

Protecting intellectual property rights is another area where AI and Blockchain have proposed remarkable solutions. Blockchain provides an immutable ledger to track and trace a physical or digital product as ownership changes hands. There is a complete record of the chronologic history of a product, and no one can alter the records. Thus Blockchain provides transparency and privacy and makes it impossible for anyone to plagiarize someone’s content.

AI also has numerous benefits in this regard. For example, scanning billions of web pages in seconds to see if the content is plagiarized. Moreover, artificial intelligence can quickly detect and steal intellectual property or copyright infringement and notify the users.

An example is IPwe, the world’s first AI and blockchain-powered global patent registry that solves the problems like inaccurate data, outdated ownership records, and lack of transparency in the IP ecosystem.

Another example is MediChain, a healthcare-focused blockchain platform that leverages AI for intellectual property protection. MediChain enables medical professionals and researchers to securely store and share sensitive health data while maintaining control over their intellectual property. Through AI-powered algorithms, MediChain can detect and prevent unauthorized access to medical data, ensuring privacy and protecting intellectual property rights.

Conclusion

The convergence of AI and Blockchain is reshaping various industries by improving security, transparency, and efficiency.

Cybersecurity is strengthened by AI’s rapid threat detection and Blockchain’s immutable ledger. Traceability and fraud prevention has improved supply chain management. AI and Blockchain provide transparency and rapid threat detection in financial systems. Healthcare sees advancements in personalized medicine and secures patient records. Agriculture and Intellectual property protection also benefit from these technologies.

In short, integrating Blockchain and AI opens up transformative innovations across sectors.

.  .  .

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Ref_figure_healthcare:
Rajawat, A.S., Bedi, P., Goyal, S.B., Shaw, R.N., Ghosh, A., Aggarwal, S. (2022). AI and Blockchain for Healthcare Data Security in Smart Cities. In: Piuri, V., Shaw, R.N., Ghosh, A., Islam, R. (eds) AI and IoT for Smart City Applications. Studies in Computational Intelligence, vol 1002. Springer, Singapore. https://doi.org/10.1007/978-981-16-7498-3_12

Ref_figure_agriculture:
Bhat, Showkat & Huang, Nen-Fu & Bashir, Ishfaq & Sultan, Muhammad. (2022). Agriculture-Food Supply Chain Management Based on Blockchain and IoT: A Narrative on Enterprise Blockchain Interoperability. Agriculture. 12. 40. 10.3390/agriculture12010040.

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The broad acceptance of blockchain technology over traditional database systems is largely attributed to its distinguishing features. In a comparison of blockchain versus traditional databases, it becomes evident that blockchain stands out with features like immutability, better transparency, higher security, and decentralization.

As blockchain technology becomes more prevalent and advancements are made, blockchain is estimated to replace traditional database mechanisms. The enterprise blockchain market is expected to reach 246$ billion by 2030, up from 4.9$ billion in 2021. 

Following is a brief account of the future of blockchain in various fields and sectors.

Cybersecurity

In a blockchain network, the data is encrypted by cryptography. Each information block is linked to other blocks with a unique hash value, and the record is visible and accessible to everyone in the network. The information can be verified by anyone at any time. 

Blockchain-based cyber security systems would make it almost impossible for hackers to attack or steal information. 

Data stored on centralized servers are more prone to hacking, corruption, and technical and human errors resulting in data loss. As blockchain is decentralized, the data is not in the hands of a particular authority, organization, or server. Rather it is disseminated among a network of nodes. Each node has its own copy of the record. So, if a blockchain-based cybersecurity system loses data from one of its nodes, extracting data using other nodes wouldn’t be difficult.

Blockchain-powered cybersecurity systems would be tamper-proof as any change in the record requires consensus from the maximum number of participants. 

In short, blockchain technology has the power to innovate cybersecurity and provide better and safer solutions to companies and individuals.

Internet of Things

The Internet of Things faces many security, tracking, and traceability challenges. Blockchain technology has the potential to provide solutions to the current problems in the field.

IoT integrated with blockchain can allow companies to track the position, arrival time, and shipment of products during freight movement. This data is immutable, so organizations can trust freight forwarders and shipping companies.

IoT data stored on a blockchain will allow manufacturing companies to keep track of ownership of a product throughout its life. It also makes sharing this data with shippers, consumers, or regulatory authorities for administrational or legal operations easy.

IoT devices like elevators and fire alarms monitor and detect critical security and safety conditions. If integrated with blockchain, the data recorded by these devices can be stored on a blockchain shared with third-party repair service providers for timely management of any possible mishap.

Another problem faced by current IoT systems is the security issues like cyberattacks. In October 2016, the US internet systems were taken down by cyberattacks from malicious software that infected traffic from IoT devices like webcams, video recorders, baby monitors, etc. 

In short, in the future of blockchain, we can expect a profound positive impact on the safety and security aspects of IoT systems.

Finance and Banking

Blockchain systems are the underlying technology of cryptocurrencies like Bitcoin, Ethereum, etc. The current trend of global inflation and the increasing costs of money transfers between financial intermediaries imply that cryptocurrencies are the future of finance.

Transactions in cryptocurrencies are decentralized, transparent, and secure. As no middleman or regulatory authority is involved, the exchange is cost-effective and speedy, unlike traditional transactions that take some time to be authorized and validated.

Healthcare

Healthcare providers obtain and store a huge amount of personal data from patients. Such data needs to be stored securely to maintain patients’ privacy. Traditional organizations store data in a centralized database, making it prone to attack and steal. 

Blockchain technology can empower healthcare organizations which decentralized record-keeping systems that will be immune to modifying, deleting, or tampering. This allowed the sharing of data strictly between patients and authorized doctors only.

Blockchain can track and control drugs and their movement from pharmaceutical companies to patients(consumers). The unauthorized supply of drugs and counterfeit vaccines can also be detected and prevented.

Blockchain systems can also automate medical examinations, improve treatment transactions, etc.

Governments 

Governments can also use blockchain technology to automate and streamline various operations. Voting can be made more transparent, efficient, and secure by using blockchain technology.

Blockchain will empower governments to keep identity records and manage sensitive data more securely, protect voter identities, prevent fraud and forgery, and support remote voting.

Governments relying on blockchain could eliminate many intermediaries, thus significantly reducing the chances of corruption.

A blockchain-based system would provide faster auditable reconciliation. This can help reduce redundancy and maintain data identity.

So, in the future of blockchain, we anticipate a transformation in the way governments operate.

Unified Communications

Implementing blockchain technology enables safer, faster, and more reliable communications. Implementing blockchain can allow industries to make digital or automated communications based on prebuilt algorithms.

People using messaging platforms have concerns about the privacy and security of their information, like chats, etc., whether the companies sell their data, etc. Blockchain-powered messaging would decentralize data instead of storing it in a central server, ensuring privacy and data safety.

Donations and Charity

People who donate to charities online often have reservations about whether their money reaches the needy. Blockchain-based charity can alleviate their concerns by enabling everyone to track every cent throughout its journey from the donors to the recipients.

Blockchain databases can act as secure, immutable, and evident ledgers making it impossible for anyone to corrupt the record.

World Economy and Blockchain

Currently, international trade is inefficient. It slows down commerce and discourages trade between nations. The world of international trade is rife with fraudulent activities, counterfeiting, and political interference.

As blockchain becomes more and more prevalent in global trade, using cryptocurrencies would alleviate many of these problems. By shifting payments, paperwork, and regulations, to a single unified blockchain-based system, much of the scam and inefficiency can be eliminated.

The advancement of blockchain would also allow many other business operations like smart contracts, automated tracking, policy enforcement, etc.

Conclusion 

In conclusion, blockchain technology has journeyed far since its inception, becoming an invaluable and indispensable tool for many industries. With its remarkable features like immutability, transparency, and decentralization, it has the potential to revolutionize many sectors. 

In the future of blockchain, its endless applications – from cybersecurity to finance, governments, and charity – will continue to innovate and shape our world.

.  .  .

To learn more about variance and bias, click here and read our another article.

The post Future of Blockchain first appeared on Magnimind Academy.

Blockchain has changed how various industries manage their tasks and a significant number of industries are increasingly adopting this technology. More blockchain involvement in various industries is surmised in the future. 

Below, we will mention key differences between blockchain and traditional database systems. We will also see how these differences bring advantages to blockchain and what makes it better than traditional database systems.

Immutability

Traditional databases use CRUD(create, read, update, delete) method as their primary way of recording information. This method allows modification or deletion of the recorded data. These databases are prone to attack and manipulation by hackers or rogue administrations.

On the other hand, data recorded in the blockchain cannot be altered, modified, or deleted.

Each data block is verified by all nodes and tagged with a specific hash code that links one block with the others. If any change is to be made in the blockchain, it has to be confirmed by the majority of the participants, which ensures that no one can tamper with the data stored in a blockchain. 

This immutability makes blockchain a favorite for recording transactions, tracking, and tracing products.

Decentralization

Unlike traditional systems that store data in a centralized server, a blockchain network shares controls, functions, and data between several computer nodes. Each node has its own copy of the information. The supervision and decision-making authority is also shared with a dispersed network.

Each node has its own copy of the disseminated record. This means that no one has to trust any other member. This decentralization is the key to the security and transparency of blockchain technology. 

World’s largest corporations use centralized data systems as well as servers. Even though these corporations implement and maintain best network practices, their data systems and servers act as attractive targets for hackers and the operations may get affected. Decentralization offered by blockchain prevents this problem and this is why this technology is being adopted by several industries.

Improved Security

The third point about the blockchain vs. database comparison is security. Data in a blockchain is encrypted, meaning no one can reveal the identity of a blockchain unless provided with a specific address. This provides anonymity and privacy to the users guaranteeing data security.

The decentralized nature of the blockchain eliminates the need for a central authority to validate transactions. This makes it difficult for anyone with malicious intent to corrupt the data making it tamper-proof.

Blockchain uses consensus mechanisms. This means that the cryptographic algorithms cannot be changed without the consensus of the maximum number of participants. If someone tries to taint a user’s record, it will be rejected by most of the individuals in the network. Or if a single actor’s hacked computer cannot take the entire blockchain network down.

Thus the security of the blockchain is highly reliable and trustworthy, making it ideal for financial transactions and data sharing.

Instant Transactions

One of the major hassles in business is time-consuming contractual transactions. This is particularly true for businesses that process large amounts regularly.

On the other hand, blockchain technology works around the clock, i.e., it makes transactions faster, more efficient, and seamless by eliminating third parties, thus saving time and costs and preventing human errors.

Smart contracts are programs that are stored on the blockchain and are implemented automatically when pre-terms are met by both parties. These allow companies to automatically validate, sign and enforce agreements.

Improved Transparency

Blockchain maintains a higher level of transparency than traditional systems. In financial transactions, once a payment is made, the other party can instantly check and track the payment without the approval or even involvement of any third party.

Physical, digital, or intellectual products can be tracked and traced as they move from one place to another, or ownership changes hands. Companies can also track the location or conditions of the shipment products etc.

Network members can control what information others can see and their actions. Companies can also decide what data is accessible to the public and what is accessible only to authorized people.

Each member of a blockchain network can verify records anytime. Blockchain networks are called “trustless networks.” This isn’t because the members do not trust each other but don’t have to.

Cost Efficiency

As described earlier, blockchain eliminates third parties and other authorities from verifying transactions. The technology allows business-to-business and peer-to-peer transactions to be completed without any involvement of a third-party like a bank.

Thus, there is no need for costly middlemen. This reduces intermediaries’ cost in a traditional network and makes blockchain cost-effective.

Moreover, blockchain is immutable, which means that there is no need for costly auditors and reconciliation. All the members have a copy of the same data, which significantly reduces the cost of making and sharing copies of the same data.

Traceability

When working with traditional databases, it’s quite difficult to check historical transactions. However, blockchain technology has revolutionized the concept of traceability by providing secure information sharing and enhancing the monitoring and control of product quality, operations, and real-time data acquisition throughout the supply chain. This increased transparency and visibility offer numerous benefits to businesses and consumers alike.

One of the key features of blockchain is its ability to create an irreversible audit trail. This enables users to track an object back to its origin, providing a clear and trustworthy record of its history. Companies can now monitor their products as they move through various stages of the supply chain, ensuring that each step is accounted for and verified.

A prime example of blockchain’s impact on traceability is Walmart, an American retail corporation that has implemented blockchain-based systems to track and trace a wide range of goods. By utilizing this technology, Walmart can effectively monitor the journey of products from their source to the store shelves, ensuring quality control, reducing the risk of counterfeit goods, and increasing consumer confidence.

User Control

Blockchain provides its users with complete autonomy, privacy, and security to its users. You can decide what information to share with others and what to keep private. Users can also decide what actions other members can take with their data. 

A person’s identity is completely anonymous, i.e., a user can use blockchain-based technologies with all their features without the fear of being tracked or traced.

Blockchain technology is free from censorship as there is no single authority. Therefore no one can interrupt the process and operations of a network.

Conclusion

Although blockchain technology was initially developed to work only in the financial arena, it has already started taking over other industries through its huge potential and slowly becoming an absolute game changer. 

According to some experts, blockchain technology is much more promising than the cryptocurrencies it was designed to support. With its implementation, more valuable usage opportunities are coming into existence almost regularly.

.  .  . To learn more about variance and bias, click here and read our another article.

The post Blockchain vs. Database: Key Advantages of Blockchain first appeared on Magnimind Academy.

What is Blockchain Technology?

Blockchain is a secured, shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. Blockchain allows us to store and share information in a secure, decentralized way.

It uses peer-to-peer networks, cryptographic proof of work algorithms, and nodes to create consensus about the state of shared data at any given time. Blockchains can be public or private, and they can store various types of information beyond just transactions between two parties.

How does Big Data work?

The era of Big Data has emerged, generating vast quantities of data every day. For instance, Facebook alone amasses over 300 petabytes of user information, including profiles, images, videos, and messages. This enormous data production has given rise to new domains such as data analytics and big data, which help comprehend human behavior and foster innovation across various sectors, including economics, social, political, and medical fields.

Big data refers to data sets that are characterized by their large size, diversity, and complexity. Three types of big data structures can be defined: structured, unstructured, and semi-structured data.

• Structured data refers to databases that are organized into tables with rows representing individual records (also known as tuples).
• Unstructured data may include free text like articles or blog posts; images such as photographs or videos; audio recordings such as podcasts or interviews; and sensor-generated measurements such as location coordinates, temperature, humidity, and pressure readings.
• Semi-structured data is a mix of structured and unstructured data, meaning it has some organizational structure but does not fit perfectly into a pre-defined format.

Big Data is a valuable resource for the global economy. However, its sheer volume poses challenges for traditional systems in processing and analyzing it. As companies gather data to enhance customer experiences, they encounter significant hurdles like data privacy and security.

Traditional database management systems may struggle to handle big data, but this is not the only challenge posed by these types of data sets. Advanced technologies and techniques such as distributed computing, machine learning, and data mining are often required to effectively analyze big data and extract valuable insights.

The relationship between Blockchain and Big Data

The connection between Blockchain and Big Data benefits both sides. Big data analysis helps businesses use tons of messy data to make smarter choices and enhance their operations. Meanwhile, blockchain tech offers a safe way to store this data without relying on a central authority.

Benefits of Using Blockchain in Big Data Analytics

Blockchain technology could cause a major transformation in data analytics. The use of blockchain for data analysis provides several advantages such as:

Secure data and keep it private

Blockchain technology can enhance the security of sensitive data by enabling tamper-proof storage and efficient data sharing across a network. While blockchain does not inherently provide anonymity, it can enable the controlled sharing of information without the need for a central authority or intermediary. This can be especially useful for scenarios involving confidential information such as medical records or financial transactions, where privacy is a concern.

Make transactions easier

A unique feature of blockchain technology is operating in a decentralized manner. It doesn’t require a central authority such as a bank. All the computer nodes on a network validate any transactions that occur instead of an intermediary being involved. These nodes will have to come to an agreement concerning the condition of the blockchain for a transaction to be considered approved. This process is called “consensus.”

Even though blockchain transactions usually outpace conventional payment systems in speed and efficiency, other elements like network traffic jams can reduce transaction speeds.

Keep your data secure

Blockchain does not possess a shared hub that contains all of its data; instead, the information is dispersed across a range of computers in order to guard against potential infiltrations or data realizations.

Each block in a blockchain has its own unique code which makes it easier to verify whether any changes have been made since the last time it was verified by someone else.

Confidence in external data

Businesses often struggle to validate the authenticity of data sourced externally, which can lead to untrustworthy insights. Blockchain implementation facilitates easy verification of external data, bolstering confidence in the information obtained from external sources.

Permanence and traceability

Blockchain technology ensures data sets are unchangeable and fully traceable, offering data visibility and uniformity to all network participants. This feature enables data auditing, as the entire data trail is accessible on the shared ledger from its origin.

Fraud detection in real-time

Currently, organizations such as financial institutions rely on reactive or retrospective data analytics to identify fraudulent activities. Blockchain technology enables real-time transaction monitoring, allowing for predictive analysis to recognize risky or fraudulent transactions and avert potential issues.

Cost-effective data storage

Traditional cloud storage can be expensive for businesses storing massive data volumes. Blockchain technology provides a more affordable solution for data storage.

Conclusion

As it stands, the use of blockchain in big data analytics is still in its first steps but developing day by day. We can witness it becoming a widely used technology in the near future. In fact, there are already many companies that are exploring this possibility and have even implemented pilot projects to test out their theories.

.  .  . To learn more about variance and bias, click here and read our another article.

The post How Blockchain Technology May Help Big Data Analytics first appeared on Magnimind Academy.

When the history of science is examined, it is seen that the need for scientific studies has increased over the ages as a result of societies’ desire for innovation and their desire to find different things.[1] Societies that have internalized scientific thinking and accepted it as a way of life; They have made significant progress in production, trade, quality of services and raising the welfare level of people. In the process of scientific development, each new knowledge has led to a rapid increase in the knowledge production process as a means of producing new knowledge.[2]

Cloud Computing And Its Importance

Cloud computing refers to the process of Maintenance, Storage, Management, Processing, Analytics and Security of data by leveraging a network of Internet-based servers.[1] Data is not saved on physical devices, but in the cloud, this helps businesses better manage management, streamline processes, increase productivity, optimize costs, and enhance customers’ digital experience.[2]

In cloud computing, files can be saved to a remote database with cloud-based storage rather than being kept on a dedicated hard drive or local storage device. In this way, as long as any electronic device has access to the internet, it is possible to access the data and the software programs that will run it.

The Future of Cloud Computing

Businesses today are looking for innovative ways to grow and achieve their business goals.[1]

The global cloud computing platform market size is expected to grow from US$545.8 billion in 2022 to US$1240.9 billion in 2027 with Compound Annual Growth.[2]

Cloud computing is powerful and comprehensive, it will continue to grow and bring many benefits in the future. Cloud computing is extremely cost-effective and companies can easily use it for their growth.[3]

In the future, the number of institutions that receive cloud services will increase and it will become inevitable. There are also intelligence and federal government agencies such as the NSA, CIA, FBI, which are national security sensitive.[4]

Federal agencies have begun using cloud computing to access IT resources, such as servers that store digital files, over the Internet more quickly and for less money than is necessary to own and maintain such resources.[5]

In summary, considering the advantages of cloud infrastructure, cloud computing is not just an on-demand technology trend; is the key to future profitability, longevity and success for a business.

Periodic or continuous consultancy and support from organizations that have experience in cloud computing security will enable cloud computing, which has become an indispensable technology in the world where wireless technologies dominate the future, to a reliable, fast and useful hardware.[6]

Cloud computing stands before us in a dazzling way in the world of the future. Without adequate equipment and knowledge, this dazzling obscurity can cause unpredictable damage and confusion. Every day that passes without making the necessary preparations and advancing towards the future with solid and reliable steps will take us to the edge of the abyss. At the end of the day, we are on the verge of a process that both copes with factors such as speed, flexibility, quality and low cost imposed by global competitive conditions, and is profitable for those who use technology efficiently.

The post The Role Of Cloud Computing In The World Of The Future first appeared on Magnimind Academy.

However, despite all the news and predictions made around it by experts, it seems that a lot of people aren’t very aware of what blockchain actually is and how it works. In this post, we’re going to give a brief information about blockchain technology and its working method. Let’s delve deeper.

Understanding Blockchain Technology

At its simplest form, blockchain is a distributed, encrypted database which records data. It’s an advanced database mechanism (method of recording information) that shares information among a network of all participants. Blockchain is a distributed ledger technology(DLT) in which the authority to update a blockchain is distributed among several participants or computer nodes. 

A blockchain database records information in the form of blocks confirmed by all network computers and linked to other blocks with a unique cryptographic code. This creates a permanent ledger that can be viewed by anyone in the network. All the records in the database are connected simultaneously.

The data is chronologically consistent, meaning that it is always in the correct order. This is due to the fact that each block has a timestamp, which indicates when the block was created. The blocks are then connected together in a chain, with each block referencing the one before it. This guarantees that the data on the blockchain cannot be changed without changing all subsequent blocks.

The only possible way to change the data is the network’s consensus. This means that before the data can be updated, all nodes in the network must agree. This makes changing the data on a blockchain extremely difficult since it would need the compromising of the majority of the network’s nodes.

The most common use of blockchain is as an immutable ledger that tracks and records transactions, payments, orders, etc. Blockchain technology can make any industry immutable by enabling unalterable transaction records. It cuts off the need for costly, trusted third parties like auditors.

The blockchain system can track and trace any tangible or intangible product. Modifying or deleting transaction records is impossible as the power to update a record is distributed between all network members. 

The chain (of blocks) is viewable and verifiable by everyone.

To understand blockchain technology, imagine playing a game with your friends. Everyone has their notebooks, and every time someone makes a move, he records it in his notebook. 

These notebooks record all the activities played by everyone in chronological order. Anyone from the group can see other players’ notebooks, ensuring that information is viewable to everyone and no one can cheat. 

Similarly, every piece of information entered into the blockchain makes a block recorded in a notebook (blockchain database) and shared with everyone in the network.

How Blockchain Works?

Let’s have a quick look at the working process of this technology. The following fours steps can explain the functioning of the blockchain:

Recording the Transaction

A transaction is data about the movement of a physical, digital, or intellectual product between two parties. It contains where, when, how, and what transaction was performed. It can also record the information about the product being shipped. This information is added in blocks, and each block entered in the chain strengthens the verification of the previous block.

Gaining Consensus

When a transaction occurs, it must be validated by all the network participants before the block is added. This validation is based on rules that differ according to the network. Each node validates the transaction by processes based on permissions, regulations, or economic incentives called consensus mechanisms. When the network nodes verify the transaction, the block is added.

Linking the Blocks

A new block is added to the chain when the participants reach a consensus. A cryptographic code called hash is appended to the block. This hash acts as a link between blocks, and each block is linked with the ones before and after. The blocks confirm the exact time of transactions, and the blocks are linked securely to prevent the addition of a new block in between or the deletion of a previous one. 

Each new block added does not overwrite the previous one but is attached to the previous ones contributing to the security and immutability of the chain.

Sharing the Record/Ledger

After the new information(block) is added, it is shared with all network members.

Features of Blockchain

Blockchain technology has many remarkable features that make it widely acceptable in industries worldwide. The major ones are as follows:

Immutability

The ability to create immutable ledgers is one of the most important features of blockchain. So, blockchain is immutable, meaning it can not be altered or modified. No one can tamper with a record after it has been added to the shared ledger.

Each block is tagged by a hash value that serves to link the blocks. Any attempt to tamper with the record requires changing the hash number that is viewable to everyone in the network and hence is detected.

Any database which is centralized stands a huge risk of getting hacked and they have to put trust in third-party in order to keep the database secure. In a blockchain, the ledgers are kept in the never-ending status of forwarding momentum. Here, you can only add data with time-sequential order and it’s almost impossible to modify that data and thus, blockchain is considered practically immutable.

Consensus

This is probably the biggest feature of blockchain. Here, the ledger is updated through consensus, which is the biggest power of decentralization. In order to update the ledger, no central authority with controlling ability is needed. Instead, every update made to it is validated against stringent criteria in accordance with the blockchain protocol. And the update is only added to the blockchain once a consensus has been reached among all the participating nodes/peers on the network.

Decentralized System

Blockchain is a type of Decentralized Ledger Technology(DLT). It distributes data among several nodes instead of storing it in a centralized authority. The authority to update data is also distributed among all blockchain members. 

Unlike conventional banking, where you need the approval of regulatory authorities like the government, transactions in blockchain technology are made by mutual consensus. This makes transactions faster, smoother, and hassle-free.

Security

The most remarkable thing about blockchain is that it enhances the capacity of the entire network. The key reason is there are lots of computers working together that in total provide greater power than a limited number of devices with limited capacity. It’s a general consideration that with more operational capacity, there comes more security risks. But with blockchain, this statement doesn’t hold true. 

Despite the huge capacity, this technology offers greater security because it’s just not possible to shut the system down. While the highest level of systems stand a huge risk of getting hacked, the blockchain network is extremely secured by a significant number of computers (widely known as nodes) that confirm every transaction that takes place on this network.

Blockchain conducts fraud-free transactions using a digital signature feature. No one can tamper the information of a user without having a specific digital signature. If one node tries to change the record, the other nodes will prevent it. The only way to commit fraud is to take control of the maximum number of nodes which is virtually impossible.

Blockchain is encrypted, i.e., only people assigned with a particular address can reveal them. Thus the users can remain anonymous while maintaining transparency.

Transparency

Whenever a database gets updated, each node receives its own copy of the chain. All members view and affirm a transaction before it is added to the chain.

For instance, traditional financial transactions sometimes get enveloped in mystery by financial institutions. While the financial institutions have good reasons for doing this, sometimes a deal may be slowed down by this. When utilizing a blockchain platform, once the payment is issued by a party, the other party can instantly check the transaction record without having to depend on any financial institution.

Efficiency 

Blockchain reduces the need for authorities, intermediaries, and time-consuming record reconciliations. This makes transactions seamless and swift. Smart Contracts are another blockchain application that programs stored on the blockchain and executed promptly.

Types of Blockchain Networks 

Now, let’s have a quick look at blockchain network types. There are four main types of blockchain networks: public, private, consortium, and hybrid. 

Public Blockchain Networks

This is an open-source blockchain and allows everyone to participate as users, developers, miners, or community members. All transactions taking place on this blockchain remain fully transparent, which means anybody can review the transaction details. These blockchains are designed to be completely decentralized, which means transactions that are being recorded in the blockchain or their processing orders can’t be controlled by any single entity or individual. A public blockchain offers anonymity that promotes users’ privacy. A user isn’t supposed to disclose any type of personal information before submitting smart contracts and transactions.

These networks are open and accessible to anyone who wants to participate. They are commonly associated with cryptocurrencies such as Bitcoin and Ethereum. Although public blockchains are safe and transparent, they may be slow and expensive to use. 

Private Blockchain Networks 

These are permissioned blockchains that don’t let any user to join the network freely and read/write to the ledger. It comes with an access control mechanism that remains between the users’ list connected to the network. Private blockchain is widely popular among companies that are likely to record transactions securely and interchange critical information between one another. It’s important to note that in this type of blockhains everyone is aware of the users’ identity but only those with appropriate permission can see the transactions. Additionally, as the consensus process doesn’t involve every user, a private blockchain offers higher throughput than a public blockchain.

These networks are accessible to only a selected number of authorized participants. Companies use these networks to perform transactions and track or trace objects privately. They are often used to improve efficiency and security. Private blockchains are faster and cheaper than public blockchains, but they are not as secure or transparent.

Hybrid Blockchain Networks

You can think of a hybrid blockchain as a unique type of blockchain that attempts to utilize the best parts of both public and private blockchain solutions. The biggest distinguishable feature of this blockchain is that this isn’t open to everybody but still comes with major characteristics like transparency, security, and integrity. Here, the members can decide which transactions are to be made public or who can join the blockchain. This enables organizations to work with their stakeholders in the best way possible.

These networks are combinations of both public and private types of networks. They can be set up to enable anyone to participate or to limit access to approved users only. Hybrid blockchains combine the security and transparency of public blockchains with the speed and cost-effectiveness of private blockchains to provide the best of both worlds.

Companies use these networks to restrict public access to specific data while keeping the rest of the information public.

Consortium Blockchain Networks

Consortium blockchain networks are managed by a group of institutions or companies. The participating organizations share control over the network and validate transactions. They are typically used to share data and collaborate on projects. Consortium blockchains offer the security and transparency of public blockchains, with the speed and cost-effectiveness of private blockchains.

Conclusion

Blockchain is a revolution in database management that creates immutable and decentralized networks. It shares information among a network of participants, ensuring transparency and reducing the need for costly third parties. 

This technology promises to change the way we buy and sell things, share information, and verify information’s authenticity. And because of its ability to accomplish all these in efficient, transparent, and secure ways, blockchain is being steadily adopted by almost every domain – from individual and business to government.

To learn more about data science, click here and read our another article

The post What Is Blockchain Technology And How Does It Work? first appeared on Magnimind Academy.

Considering it as a complete application

Considering it as a pure storage mechanism

Blockchain was designed to offer an immutable, trusted, and authoritative record of events triggered by a collection of untrusted parties. In its present form, blockchain technology doesn’t come with the key features of a traditional database management technology. So, you should review your data management requirements of the blockchain project and implement a traditional data management solution when required.

Assuming it as a permanently dominant technology

Businesses often assume that blockchain will always remain a dominant technology, which isn’t true. It’s evolving constantly in both application and technology and thus, it’s important to consider it as a short-term option to attain a business solution.

Assuming the smart contract technology is mature

Business leaders sometimes assume that smart contracts are fully matured, what they aren’t. They may demonstrate the most powerful aspect of the blockchain, but conceptually they’re software scripts. So, instead of planning for full adoption, you should run small experiments first.

Assuming the presence of interoperability standards

While some vendors of blockchain platforms may try to promote interoperability standards, it’s difficult to envision when most platforms are still being developed or designed. So, it’d be wise to consider the discussions about interoperability as a marketing strategy as it may not be able to necessarily deliver the benefits you’re looking for.

Overlooking the governance issues

Blockchain may seem a less expensive option than others, but it raises lots of questions regarding governance issues. As it’s still in the nascent stage, it may not be possible to predict all possible scenarios and thus, it’s recommended to plan thoroughly and look at it as a short-term option.

Confusing the future with the present-day scenario

It’s crucial to ensure that your plan for blockchain implementation with its evolving capabilities. It’s still limited in scope and you shouldn’t consider it as a way to deal with a global scale platform economy.

Ignoring the importance of a learning process

As with all other technologies, blockchain also comes with a learning curve which is often overlooked by businesses. It’d be wise to take a hands-on approach to the blockchain projects to make the implementation successful.

Overlooking the actual purpose

You shouldn’t take on a blockchain project as it’s trending. Instead, you should review the core intentions of it to get the most out of it.

Conclusion

If you’re at the verge of implementing a blockchain project, keep in mind the above rules and you should be able to sail through effortlessly.

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