What is Blockchain? Applications of Blockchain today

October 2, 2022 25hotness 0likes 0comments

Blockchain technology is evolving at an unprecedented rate bringing extraordinary innovations to life. This technology has opened up a new development trend for fields such as finance and banking, logistics, electronics and telecommunications, accounting and auditing, etc. What is blockchain?? What can they do? Let's find out more details with HOSTAGY through this article!

What is Blockchain?

Blockchain as a public ledger. In it, all information will be stored and transmitted in a transparent and complete manner, which cannot be altered or fraudulent. This is considered a new technology, which greatly improves the limitations of the traditional way of storing and exchanging network information.

For this reason, blockchain is now increasingly widely applied in many different fields such as economic and financial, education, agriculture, industry, entertainment, health or education... .

What is blockchain?

What is blockchain?

Blockchain technology – is a combination of 3 types of technology

  • Cryptography: In order to ensure transparency, integrity and privacy, Blockchain technology has used public key and hash function.
  • Peer-to-peer network: Each node in the network will be considered as a client and also a server used to store a copy of the application.
  • Game theory: All nodes participating in the system must always comply with the rules of the consensus game (PoW, PoS, ...) and are motivated by economic incentives.

How does Blockchain technology work?

What is Blockchain?? How does a blockchain work? – a block of information to be added to the Blockchain, must have 4 elements:

  • There must be a transaction: that is, there must be buying, selling, and exchanging activities (for example, buying on amazon)
  • That transaction needs to be verified: all information related to every transaction such as time, location, transaction amount, participants, etc. needs to be recorded. (For example, when viewing order status, you will easily know what you have ordered, how much is the total amount, when can you receive the goods...)
  • That transaction must be stored in the block: at any time you can review the information your order has made. They are stored in the “Order Management” category.
  • That block must receive a hash (a function of the conversion rate of one value to another): only when a hash is received can such a block be added to the blockchain.

Blockchain Technology will allow you to exchange assets/make transactions without the presence of a third party or possibly without relying on trust. In other words, Blockchain is a platform for the creation of smart contracts.

>> See more: What is API? Concept, and salient features of API

What is the application of Blockchain technology?

Based on existing Blockchain platforms, they have a lot of applications that have been born such as Uber, AirBnB ... but the most prominent of which is Bitcoin (virtual currency). Blockchain technology is considered as a bright spot in the industrial revolution 4.0

Blockchain has high application in information technology

Blockchain has high application in information technology

Blockchain technology trends

Although it has been around for more than 10 years, Blockchain technology is considered to have certain growth steps. This is still the foundation for many other emerging applications.

4 Blockchain trends will be predicted to develop in the coming years:

  • Blockchain technology is more trusted: Because there is state intervention, Blockchain promises to be able to reduce frauds and lies.
  • Bitcoin and many other virtual currencies continue to grow: Although there have been many bad rumors, it is still possible to see many investors believe in the strong development of virtual currencies, especially Bitcoin.
  • Expanding more applicability: Besides the financial sector, with What is Blockchain technology?? it also has a lot of potential and is applied to state management activities, elections and other industries.
  • The explosion of blockchain games: The excitement and inspiration of blockchain-based games is attracting more and more investors.

Types in Blockchain system

In Blockchain system will be divided into 3 main categories including:

  • Public: This is considered a blockchain system where anyone has the right to read and write all data on the Blockchain. The validation process needs to involve thousands or even tens of thousands of participating nodes. Because so for an attacker to this Blockchain system is impossible as well as very expensive. For example: Bitcoin, Ethereum…
  • Private: This is a blockchain system that will allow users to only read all data, but not write, as this will belong to an absolutely trusted third party. This third party may or may not allow users to read data in some special cases. In addition, they also have full control over any changes on the Blockchain. Since this is a Private Blockchain, the transaction confirmation time is also quite fast because only a small number of devices are required to authenticate the transaction.
  • Permissioned: Also known as Consortium, is a form of Private Blockchain but adds certain features, has a combination of "trust" when participating in Public and "trust is absolute" when participating in Public. join Private. For example, banks or some financial institutions will use Blockchain for their own use.
Blockchain system consists of 3 main types

Blockchain system consists of 3 main types

>> See more: What is DDOS? What is a Denial of Service (DDoS) attack?

What are the pros and cons of Blockchain?

Advantages of the field Blockchain technology It will ensure high security, eliminating the situation of stealing or modifying information.

Thanks to the decentralized platform, all information inside the Blockchain is not controlled by a single party. It is also known as the "distributed peer-to-peer consensus mechanism".

However, this technology still has a few disadvantages that you need to be aware of:

  1. Easy to be seen by hackers: although it is protected by Proof of Work consensus algorithms, applications developed on the basis of the technology are still "fat prey" of more than 50% of network attacks. .
  2. Modifying data is extremely difficult: once the data has been put into the Blockchain, it is very difficult to change. Stability is both an advantage but also a disadvantage of Blockchain.
  3. The inconvenience of private keys – private keys: each Blockchain account will always be given a public key (which can be shared) and a private key (which needs to be kept secret). Users easily use their private keys to access their funds. If they lose their private key, their money will be lost without them being able to do anything about it.

Major Versions of Blockchain

Currently with blockchain technology Currently there are 3 main versions including:

Blockchain 1.0

Currencies and Payments: An early and early version of the technology.

The main application of this release is related to crypto-related work. It includes currency conversion, remittance and creation into digital payment system.

This is also an area that is quite familiar to many people, sometimes quite a lot of people will mistake Bitcoin and Blockchain for the same thing.

Blockchain 2.0

Finance and Markets: This is the 2nd version of blockchain technology.

This application has the purpose of financial processing and banking: to scale up Blockchain, to integrate blockchain into financial applications and markets.

Assets include stocks, checks, debt, title, and anything related to an agreement or contract.

Blockchain 3.0

Design and Operational Monitoring: Currently this is the highest version of blockchain.

What is Blockchain?? In this version, it will cross the border to only serve the financial sector. It targets other possible areas such as: education, government, health and arts…

3 major versions of Blockchain

3 major versions of Blockchain

Practical application of Blockchain technology in life

Some of the industries that the application of Blockchain technology can impact are as follows:

  • Automotive Technology (Automotive)
  • Manufacturing (Manufacturing)
  • Technology, media and telecommunications (Tech, media & Telecommunications)
  • Financial Services (Financial Services)
  • Art & Recreation (Art & Recreation)
  • Health Care (Healthcare)
  • Insurance (Insurance)
  • Retail (Retail)
  • Public Sector
  • Real Estate (Property)
  • Agriculture
  • Mining (Mining)
  • Transportation and Logistics (Transport & Logistics)
  • Technical infrastructure works (Utility)

Blockchains today can really transform the market, because we can control every transaction, every contract or any movement in the network. In addition, we can make P2P transactions and processes more transparent, secure with the help of cryptography, timestamp and easy to track.

This is different from the Internet today, where intermediaries will play an extremely important role. Large companies such as Facebook, Google, governments, banks, high-tech companies are all intermediaries that can influence information and processes in the Internet. Blockchain eliminates such intermediaries for everyone's benefit.

Hopefully through this article of HOSTAGY has shared and added some useful information about technology for you. What is Blockchain?? as well as the advantages and features this technology brings to us in our daily lives.

>> See more: What is Platform? Types of popular platforms today

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