What is Blockchain?
- A blockchain is a digital concept to store data . All the blocks are connected using cryptographic hash function.
“Blockchain is to bitcoin , what the internet is to email.”
- Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
1. It is Decentralized :
->The blockchain is not controlled by any central authority or organisation.
-> It has a network of millions of computer in the form of distributed ledger , which is totally synchronized with each other.
2.Role of Public key and Private Key in providing supreme security :
-> Private key takes some data and associated a signature to it .
Let’s say, If I have some data and I want to add it in the blockchain, I will use my private key to sign the data , which only I have access to, and everyone will identify this using my public key which is public to everyone.
-> If the public key works , that's proof that the message was signed by my private key and is something I wanted to send.
“Blockchain is to bitcoin , what the internet is to email.”
1. It is Decentralized :
->The blockchain is not controlled by any central authority or organisation.
-> It has a network of millions of computer in the form of distributed ledger , which is totally synchronized with each other.
2.Role of Public key and Private Key in providing supreme security :
-> Private key takes some data and associated a signature to it .
Let’s say, If I have some data and I want to add it in the blockchain, I will use my private key to sign the data , which only I have access to, and everyone will identify this using my public key which is public to everyone.
-> If the public key works , that's proof that the message was signed by my private key and is something I wanted to send.
- What is Bitcoin ? How it is related to mining?
Bitcoin is the first decentralized and most popular cryptocurrency in the world.
- Mining : (Interesting things starts here)
Let' say we have a block chain system and in every 10 minutes , a new block has to be added in the network. There is a computationally difficult puzzle to be solved by a person having suitable computer and hardware to put their block next in the chain. For every block added , new bitcoins are created and that bitcoin is rewarded to that person.
In summary , Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released.
One can start bitcoin mining right away if one owns a computer having proper hardware which can compute really fast to increase the chance of correct guessing per second , since the problem is solved by the guess work. - China is the undisputed world leader in Bitcoin mining. Why?
->The actual cost lies in the amount of electricity consumed by the hardware and in acquiring the sufficiently high computation power.
->Not only does China manufacture most of the world’s mining equipment, but massive mining farms are located there to take advantage of extremely cheap electricity prices.
->Chinese mining pools control more than 70% of the Bitcoin network’s collective hash rate. (India - 4% , USA - 1% ).
->A higher hash rate is better as it increases your opportunity of finding the next block and receiving the reward.
- China’s Bitcoin Mines
- How Bitcoin solves the problem of Double Spending problem?
->Double spending means spending the same money twice. Bitcoin manages the double spending problem by implementing a confirmation mechanism and maintaining a universal ledger, block-chain , similar to traditional cash monetary system.
->To avoid the multiple transaction by single miner , it is recommended to wait for a minimum of six confirmations( i.e, let six more block be added in the network). - Bitcoin Cash :
->The problem with the bitcoin is : it is too slow to scale effectively. Transactions take about 10 minutes to process.
->Bitcoin cash has implemented an increased block size of 8 mb, to accelerate the verification process to remove scalability issues.
Why Bitcoin has bad reputation?
- Talking about Internet ,there is:
- “Only 4% of the internet is visible to the general public.”
1) Surface Web , on which results can be found simply by searching on google. Example : Wikipedia , Facebook, etcetra , anything which are being indexed by Google.
2) Deep Web , which can not be accessed simply by searching on google , we have to know the specific website. Google doesn't store deep web information in their indexing due to large data and some security issues. Examples are : Scientific and Medical Reports , Academic information.
Both are completely legal to use.
3) Dark Web , which is illegal to use , and it can be accessed using TOR Browser and VPNs to access TOR Encrypted sites , Drug Trafficking sites , Silk Road, etcetra , all the illegal and private works.
TO explore dark web : Surfing the DARK WEB | Taking a Tour! - “It is extremely easy to access the dark web and even easier to be detected on it if you don’t take precautions.”
->You can be tracked if you use your bank account or even cash for such activities . But if you use Bitcoin (Either you bought it or you yourself mined it) or any other Cryptocurrencies , it's almost impossible to get caught , since the identity of the person doing transaction is completely anonymous. That's the beauty and bad use of block chain technology at the same time.
-> We see that Because of Dark Web and Bitcoin , the crime has Globalized and now-a-days , Bitcoins are used mostly for illegal dark activities. - Legality of Bitcoin :->There is always a pertinent question —is bitcoin legal or illegal?
->The answer is, it depends on the location and activity of the user.
->To know country wise legality status , here .
- It is a open-source , public, block-chain based distributed computing platform , a language for creating smart contract executed by Ethereum Virtual Machine(EVM).
- In the Ethereum block chain , instead of mining for bitcoin, miners work to earn Ether (a unit of currency in Ethereum), a type of crypto-token that fuels the network.
- It is the core tool to develop blockchain based applications. To start a career in blockchain development , you can shoot yourself by first writing a smart contract and then further. Udemy has many courses on this.
- For traditional companies , there are a few ways of going about raising funds necessary for development and expansion , like ,
-> wait for the company to grow and make profit
-> find investors for early support
-> Another method sees companies go public, earning funds from individual investors by selling shares through an IPO. - ICO is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It is similar to the way in which investors purchases the shares of a company.“Bitcoin is the currency of resistance… If Satoshi had released Bitcoin 10 yrs. earlier, 9/11 would never have happened”
->Max Keiser
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